Hundreds of thousands of Londoners may be missing out on cash they are entitled to

Hundreds of thousands of Londoners could be missing out on money to which they are entitled, according to figures collated by the Greater London Authority. The GLA estimates that at least £1 billion could be going unclaimed in London each year – money which would not only help working families on low incomes, the elderly and other vulnerable groups make ends meet, but could also boost London's economy, with people having more cash to spend on goods and services.

The Mayor of London Boris Johnson has announced a new awareness campaign aimed at Londoners eligible to claim for tax credits and other benefits. The idea is similar to the Annual Tax Credit Campaign recently launched in New York, which also aims to ensure that more New Yorkers are able to claim tax refunds they are eligible for.

More than 120,000 families in London could be entitled to claim Working Tax Credits to help them eke out their wages, but are not claiming it.Around half of London children living in poverty have at least one parent in work. One in three pensioners who are entitled to Pension Credit may be missing out.

The Mayor of London Boris Johnson said: 'There are too many Londoners struggling to pay for basics such as heating, housing and food bills, when many could be better off simply by getting the tax credits and other benefits they are entitled to. It is scandalous that £1 billion a year could be going unclaimed in the capital each year, cash that could make a real difference to the lives of hard working families and older and vulnerable Londoners.'

The new campaign will involve poster and media advertising, as well as promotion through libraries, community centres, GP surgeries and other public venues. Staff and volunteers at community organisations will also be given basic training about what benefits and tax credits are available and how to claim, so they can target more hard to reach groups.

There are a number of reasons for people not claiming Working Tax Credits and other benefits. Many think they are ineligible, or they are simply unaware of what is available. Some are concerned that other benefits they are claiming could be affected. Language and other communication barriers, including for Deaf people, can also make the application process more difficult.

Deputy Mayor of London Richard Barnes, who is visiting older Londoners using the Age Concern services in Acton, said: 'It is simply a question of fairness and Londoners understanding what benefits they are entitled to. Whether you are 18 or 85 years old, in work or out of it, own your own home or rent, have children or not, the tax and benefits system offers a range of financial support to help you. Don't lose out on benefits to which you may be entitled.'

Sam Mauger, Chief Executive at Age UK London says: 'These are difficult times for all of us and we know that a little bit of extra money can make a huge difference. More than £5 billion of means-tested benefits go unclaimed by older people every year so make sure you’re not one of the people missing out on the support you are entitled to.

'Age UK and Age Concern in London are here to help you find your way through the complicated benefits system so to find out how to contact your local office visit ageuklondon.org.uk or call the national advice line on 0800 169 6565.'

Citizens Advice Chief Executive Gillian Guy said: 'Far too many people in dire need are missing out on substantial amounts of extra cash that could make all the difference between getting by, or going under.

'The benefit and tax credit system can seem complicated and daunting, but help is out there. Our advisers can provide a free benefit check and can help people navigate the complexities of the system, identifying all the extra help they should be getting and assisting with the claims process.'

FACTS AND FIGURES

The Department for Work and Pensions and HMRC estimate take-up rates. They are sometimes lower in London than the UK as a whole, in spite of costs in London being higher. Their estimates show that: 

• One in three pensioners who are entitled to Pension Credit may be missing out. It is estimated that around 11 percent of those not claiming are in the capital. Pension Credit brings up a single pensioner's income to £132.60 per week. 

• More than 120,000 families in London are eligible for working tax credit to help them eke out their wages, but are not claiming it. Around half of London children living in poverty have at least one parent in work.
• In 2008-9, between 680,000 and 1,180,000 people on low incomes in Great Britain did not claim Housing Benefit to which they are entitled and which could on average allow them more than £40 per week towards their rent. Survey analysis suggests roughly 21 per cent of these people may be in London. 

• Between 2.13 and 2.93 million entitled families in Great Britain did not claim Council Tax Credit in 2008-09. While a relatively small amount, at an average of £13 per week in Great Britain, this could make a big difference in helping people make ends meet. Secondary analysis of survey data suggests about 12 per cent of these families were in London.

Event:  'Know your rights' welfare benefits campaign launch

Date:    Thursday 3 February 2011

Time:    10:30am

Venue: Age Concern Ealing

Michael Flanders Centre, Church Road, Acton, London W3 8PP

            Map at http://bit.ly/ecU2kJ

Notes to editors

1. The 'Know Your Rights' Campaign was set up in January 2009 to ensure that older people and carers in London were able to access financial help when they require it, and to provide those who are entitled to financial assistance the help to claim for it.  It also aimed to encourage older people to combat fuel poverty by obtaining free or discounted energy efficiency measures in their homes wherever these are available. The 2010 campaign was extended to include low-income families.
2. Benefits are changing and the government will be bringing in proposals to overhaul the welfare system over the next five years. This year people may be more confused than usual because of publicity about these changes but most changes in benefits will not take place until 2013 at the earliest.
3. CAB data indicates that for the full year of the 2009 campaign 1,175 people made a successful claim for benefits as a result of the campaign through their offices. Other people will have claimed through Age Concern London or carers’ centres or through other agencies.  CAB calculated that on average each new claimant would receive an additional £4,500 per year. This means that on the CAB referrals alone, over £5m was raised for older people and carers in London, representing a return of £700 for every £1 spent on the 2009 campaign.
4. Data sources: London Child Poverty Commission, Legacy Report 2010; National Audit Office: Progress in tackling pensioner poverty, 2006; CAB campaigns for benefits take up among older people: what works, 2002; Experience of poverty and ethnicity in London by Roots Research Centre, Equanomics UK and the Centre for Local policy Studies, Edge Hill University for Joseph Rowntree Foundation, October 2010 (not yet published); Income Related Benefits: Estimates of Take-Up in 2008-09 (Department for Work and Pensions, 2010); Child Tax Credits and Working Tax Credits Take-Up 2007-08 (Her Majesty’s Revenue and Customs, 2010).

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