£65 MILLION in cost of living payments have NOT been claimed – and Labour wants to make DWP cuts???

Households across England are being urged to hurry and claim vital cost of living payments before the looming deadline at the end of March. Recent data obtained from a Freedom of Information (FOI) request has revealed that a staggering amount of money from the government’s Household Support Fund remains unclaimed, leaving many households in dire need without the support they qualify for.

As high costs persist, the Labour Party government extended the Household Support Fund for another year, adding an extra £421 million to ensure families have the necessary support to navigate these challenging financial times.

However, as time runs short, many are still unaware of the assistance available to them. You should contact your local council if you think you are entitled to the cost of living payments.

The payments, which amount to various sums depending on specific criteria, have been designed to provide crucial aid to struggling families. In Manchester, for instance, the city council is currently offering up to £200 for eligible households. With just days remaining to apply, individuals are encouraged to act swiftly.

Manchester: an example of varying cost of living payments

According to the criteria established by Manchester City Council, there are three distinct groups that can receive cost of living payments.

Group 1 allows eligible households—those in receipt of Council Tax Support, with at least one person receiving disability benefit like Disability Living Allowance (DLA) or Personal Independence Payments (PIP)—to receive £100. This group must not fall under either Group 2 or Group 3.

Group 2 can claim £150 and includes households receiving Council Tax Support or Housing Benefit, but who have not qualified for a government Winter Fuel Payment based on their income and were aged between 66 and 79 as of September 23, 2024.

Finally, Group 3 is for those who are 80 or older and similarly receiving Council Tax Support or Housing Benefit, also not having qualified for the Winter Fuel Payment based on income, allowing them to receive £200.

Staggering amounts left unclaimed

Sadly, recent revelations indicate that approximately £65.2 million of the cost of living payments fund is still unclaimed across councils in England.

Among these staggering figures, over £20 million remains unallocated from just ten councils. This situation raises concerns about whether vulnerable individuals, struggling with the pressures of rising costs, are aware of their entitlements.

All this comes amid a backdrop of Labour cuts to the DWP.

As the Canary previously reported, the DWP under Labour is changing the eligibility criteria for Personal Independence Payment (PIP). It is also freezing chronically ill and disabled people’s Limited Capability for Work and Work-Related Activity (LCWRA) elements of Universal Credit, at £97 a week – and reduced them to £47 a week for new claimants – with only people with the most severe conditions able to apply for LCWRA. People under the age of 22 will no longer be able to claim these top-ups under Universal Credit at all.

Initially, the government had claimed that Reeves’ proposed cuts would save them £5 billion. However, the Office for Budget Responsibility (OBR) has had to clarify that the savings will actually be £3.4 billion – hence the freeze in LCWRA rates.

Neil Kadagathur, CEO and co-founder of Creditspring, expressed the urgency of the matter, stating:

It’s been another punishing winter for household finances. Schemes such as the Household Support Fund can provide a lifeline for those struggling to afford rising bills, but with millions left unclaimed, it is clear that vulnerable people are missing out on much-needed support.

Cost of living payments are still not enough

His comments highlight the pressing need for better communication from local authorities to ensure that those who qualify for cost of living payments do not miss out.

As the deadline approaches, councils across the country continue to offer various forms of support. It is essential for residents to check their local authorities’ websites or to contact their offices directly to understand the options available to them. Given the current economic climate, the funds are necessary and could make the difference for many households experiencing financial strain.

However, the sheer volume of unclaimed cost of living payments also raises questions over Labour’s plans to cut DWP benefits for chronically ill and disabled people. It should also not be forgotten that the support packages – like the Household Fund – from previous Tory governments, were not adequate in the first place.

The ongoing challenge remains that while funds are available, ensuring that those who qualify are made aware and able to claim is a task that still requires attention. As millions struggle to make ends meet, the effectiveness of the Household Support Fund is overshadowed by the number of unclaimed payments, pointing to a vital gap in communication from the government and the DWP.

Featured image via the Canary