Birmingham and the West Midlands are missing out on £1 billion in unclaimed benefits and social tariffs every year, according to the Missing Out 2025 report by Policy in Practice. The report reveals that £24.1 billion in benefits and social tariffs goes unclaimed across the UK annually, with £435 million of that total sitting unclaimed in Birmingham alone.
Pension Credit and the Wider Impact
The largest unclaimed benefit is Pension Credit, with £2.2 billion nationally left unclaimed. Only about 62 per cent of eligible pensioners are claiming it, meaning hundreds of thousands of older people are missing out. In the West Midlands, Pension Credit alone accounts for £70 million of the unclaimed £1 billion, but its importance extends beyond the direct payment.
Pension Credit also acts as a gateway to other financial support, including the Warm Home Discount and Winter Fuel Payment. As energy costs continue to rise, households that fail to claim Pension Credit are hit twice: they miss both the credit itself and the additional help it unlocks.
Breakdown by Benefit Type
The report estimates that across the West Midlands (including Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall, and Wolverhampton), annual unclaimed benefits break down as follows:
- Universal Credit: £500 million
- Council Tax Support and other support: £410 million
- Carer's Allowance: £100 million
- Pension Credit: £70 million
The region accounts for 4.5 per cent of the UK population, with 2.92 million residents. Applying this share to the national £24.1 billion figure yields the £1.08 billion local estimate.
Unclaimed Benefits by City
The report also provides city-level estimates for unclaimed benefits across the West Midlands:
- Birmingham: £425 million
- Coventry: £130 million
- Sandwell: £125 million
- Dudley: £120 million
- Walsall: £105 million
- Wolverhampton: £100 million
- Solihull: £80 million
Expert Comment on the Scale of the Problem
Zak Carolan from The People's Pocket commented on the figures, saying: "A big chunk of that £1bn is Pension Credit — the gateway to the Warm Home Discount and Winter Fuel Payment. So as the energy cap rises, the people hit hardest are often the very ones already missing the help that would soften it. The money is sitting there; people just aren't being told it's theirs."
The report highlights the need for better awareness and targeted outreach to ensure eligible residents receive the financial support they are entitled to. With energy prices and living costs under continued pressure, claiming these benefits could make a significant difference to households across the region.
