UK households warned that £144 of free cash will go unclaimed

£23bn of support is not being claimed every year by people on mobile and broadband contracts, it has been warned. A report from Policy in Practice warned that it represents a 21% increase on last year as the cost of living crisis continues.

People may not know that they need to claim social rates and local support, such as Council Tax Reduction, separately. Universal Credit brings together many benefits administered nationally, but there is still room to raise public awareness of the benefits available to them.

Means-tested social tariffs offered by utility companies often suffer from the same problem. The policy in practice urged customers to “be proactive” and explained: “For benefits such as social rates or free school meals, unlocking the proactive power of data to strengthen applications can be transformative, easing the burden on applicants while simplifying administration.”

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Deven Ghelani, director and founder of Policy in Practice commented: “It’s not just about the money, it’s about the profound impact on people’s lives. Support from the social security system is a right. Failure to provide support to those who are entitled to it directly affects education, health outcomes and social participation for millions of people. We cannot afford not to close the unclaimed support gap.”

Prices start from £12 a month with Vodafone, EE and SMARTY – but you can also get six months of free broadband if you’re job hunting through TalkTalk. Ofcom claims more than four million people are missing out on an average of £144 in savings each year because they are not on a social fare.

People on Universal Credit can save cash on mobile phones and broadband thanks to social tariffs which are on offer for those on low incomes and can start from £10 a month. Through council tax credit, people can reduce it or write it off completely.