DWP benefits will be 'unfulfilled' after claimants 'fail to provide accurate information'

A new report released by the Department for Work and Pensions (DWP) highlights the number of people who do claim benefits, but could be entitled to higher payments.

£3 BILLION is going unclaimed in Department for Work and Pensions (DWP) benefits, it has been warned. A new report released by the Department for Work and Pensions (DWP) highlights the number of people who do claim benefits, but could be entitled to higher payments.

Steve Webb, partner at pension consultants LCP, said: “There is understandable focus on people who miss out completely on benefits to which they are entitled. But this new report shines a helpful light on another reason why people may be missing out on billions of pounds in benefits."

In 2023-24, claimants received an estimated 1.6% (£4.2 billion) less than they were eligible for. Official error accounted for £1.1 billion of underpayments in 2023-24, while unfulfilled eligibility accounted for £3.1 billion. DWP previously referred to unfulfilled eligibility as claimant error underpayments.

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Unfulfilled eligibility is where claimants – by error, omission or choice – fail to provide accurate information or evidence to DWP and as a result do not receive the full amount of benefit they are entitled to. For example, claimants do not inform DWP of a change in circumstances that would increase their benefit payment. Underpayment rates are highest for disability benefits. The increase in underpayments in 2023-24 was mainly due to Disability Living Allowance, where DWP's estimate of unfulfilled eligibility was 11.1% (£750 million).

Sir Steve was a former Liberal Democrats pensions minister under the former Coalition government between the Lib Dems and the Conservative Party, which started in 2010, following David Cameron becoming Prime Minister after ousting the former Labour Party government.

Sir Steve said: "These are cases where people’s circumstances have changed since they first claimed benefit and would now be entitled to extra help but have not updated DWP. I would encourage anyone on a disability benefit whose condition has worsened or anyone on a housing benefit whose rent has gone up to make sure that DWP are aware of their latest situation.

"Anyone on a means-tested benefit who has seen their savings fall since they were last assessed should also update the Department. We need to ensure that all benefits are paid on the basis of people’s current needs and not their situation months or years ago.”