People could be missing out on payments they are entitled to
Experts are warning many people may be losing out on DWP payments that they could be receiving. Benefits specialists have warned that the system can be challenging to work through, with people failing to receive the support they’re entitled to.
The team at debt assistance organisation Money Wellness has warned that people are struggling to understand the system and claim all the for benefits they qualify for, such as PIP. External relations manager Rebecca Lamb says that the benefits system can be “difficult to navigate”. She explained: “The real danger of this complexity is that some people disengage altogether. When the system feels difficult to navigate, some delay applying, give up halfway through, or don’t apply at all because they assume they won’t qualify.”
She said this can result in “serious consequences” for those who miss out on payments. Ms Lamb said: “Missing out on benefits doesn’t just mean less income. It can push people further into debt, make it harder to cover essentials like rent and energy bills, and increase stress at a time when support is needed most.”
Long forms to fill in
She highlighted two scenarios where people may have issues: Universal Credit and PIP. Looking at the PIP application process, she said: “The forms are long, the criteria can feel unclear, and the assessment process can be stressful, particularly for people already dealing with health challenges.”
PIP offers assistance to help meet the additional costs of living with a long-term health condition or disability. Claimants receive different levels of payments based on how severely their condition impacts them.
Being lifted from a lower rate to a higher one through the scheme could make a huge difference. The minimum you can get through the scheme is £30.30 weekly while the maximum stands at £114.60 weekly, a gap of £122.60, or £490.40 each four-week payment period.
When you submit your application, you may need to undergo an assessment to work out how severely your condition affects you. Ms Lamb explained how there can also be complications with Universal Credit as your payments can change.
She explained: “Payments can go up or down each month depending on your income and household situation, which makes it hard to budget or feel in control. For anyone with irregular earnings, it can feel like a moving target.”
Knock-on effect
Ms Lamb warned there can be more consequences further down the line if you fail to claim certain benefits. She outlined: “Some benefits act as a gateway to other help, such as council tax reductions or additional cost-of-living support.
“Even one gateway benefit can be worth hundreds a year, and when combined, they can easily add up to an extra £1,000 to £3,000 in extra support. So if someone doesn’t apply for one benefit, they could be missing out on several layers of support without even realising it.
“Ultimately, while the system is designed to provide a safety net, its complexity can make it feel out of reach for some people. And that’s when people lose out the most.”
The DWP has was asked for a comment. A DWP spokesperson said: “We offer support through free channels to ensure customers receive the benefits they’re entitled to. However, we recognise issues in the current system, which is why we have launched the first ever full review of PIP co-produced with disabled people and the organisations that represent them – to ensure it is fit and fair for the future.
“Universal Credit is designed to make work pay by supporting people into employment and enabling them to increase their earnings by withdrawing support at a steady rate – incentivising work and meaning customers are unlikely to be out of pocket.”
