£13 billion of means-tested benefits fails to reach those in poverty

New figures released today by DWP estimate that up to £8 billion is not being claimed in means tested benefits by those who are entitled to it.

Earlier this year HM Revenue and Customs figures revealed that around £5 billion of Working Tax Credit and Child Tax Credit goes unclaimed annually, making a total of up to £13 billion a year that those in greatest need of support are not receiving.

CPAG’s Chief Executive Kate Green said:

“Today’s figures suggest that the Government is failing to make progress on take-up rates for means-tested benefits. On the best estimate around a quarter of entitled people are still missing out. By contrast, Child Benefit, which is not means-tested, has a take-up rate of around 98%.

“With unemployment rising, it is particularly concerning that take-up of income-based Jobseeker’s Allowance is falling, as this is a gateway for the poorest families to other benefits.

“If the Government continues to rely so much on means-tested benefits to reach its targets for ending child poverty, it will fail. The balance needs to shift to increase non means-tested support, like Child Benefit, that is more certain to reach those who need it.”

Notes to Editors

1. The DWP report released today on means-tested benefit take-up rates for 2004/05 can be found here: http://www.dwp.gov.uk/asd/income_analysis/final0405.pdf
   And an overview of the key results can be found here:
   http://www.dwp.gov.uk/mediacentre/pressreleases/2006/oct/ifd261006benefits.pdf
2. The HM Revenue and Customs report on take-up of working Tax Credit can be found here:
   http://www.hmrc.gov.uk/stats/personal-tax-credits/takeup_rates_2003-04_mar06.pdf

For further information please contact:

Tim Nichols
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
press@cpag.org.uk