Robert Powell takes a look at some little known benefits that could improve your income and quality of life
August 31st 2010: my MA project deadline and final day as a student! After four years of full time education I was ready to become a real, working, tax-paying person – so what’s the first thing I did after handing in my final assignment?
Sign on and apply for housing benefit!
For two months, at 4.31pm every other Friday I’d head down to the Kilburn job centre with a list of jobs I’d applied for to see my employment advisor. And it worked! I was able to stay in London and avoid moving back to sleepy Hereford and eventually found work here at lovemoney.com.
But what I found very strange was the reactions of a few of my friends (most of whom were also unemployed) when I told them I was receiving benefits. A combination of snobbery and disgust – the general attitude was that benefits weren't meant for ‘people like us’ and that claiming them is nothing more than a lazy way to get some free cash.
And this attitude is widespread – millions of people miss out on hundreds of pounds every year because they either don’t realise that they’re entitled to them or don’t think they should claim them.
Shame?
Recent research from the New Policy Institute (NPI) has found that millions of Brits are missing out on help with their energy bills because they don’t think the benefits on offer are meant for ‘people like me’.
One in five also said that they didn’t believe in asking for help and 31% of under-70s said they were too embarrassed to claim benefits.
So is the lazy claimant culture that the right-wing press continually harps on about really so common in Britain? Well, out of the people NPI surveyed 70% said that you should only claim if you really need the help.
But with the much-publicised ‘squeeze on middle Britain’ benefits could soon become a vital lifeline for swathes of people who previously would’ve never considered them.
Rachel Robson gives you the lowdown on five ways to cut your energy bills
Energy help
The NPI study found that 5.2 million households in the country could claim free insulation grants or reduced tariffs from their energy providers. But despite being able to save £260 a year on their bills by claiming this help, only 12% actually do.
When asked why they didn’t claim the help, 47% said they didn’t think the benefits were meant for them. So to help combat this attitude the Home Heat Helpline (0800 33 66 99) has been set up to allow you to quickly find out whether you’re eligible to receive assistance with your energy bills.
A wide range of people are eligible for energy assistance, but the helpline has still identified certain hotspots where a large number of households could claim for cheaper bills. Several of the hotspots are in South Wales (Blaenau Gwent, Merthyr Tydfil, Caerphilly and Neath Port Talbot) and on the coast (Torbay, Tendring, West Somerset, Thanet and Christchurch) due to the large number of elderly residents.
For some more ways to avoid the energy price hikes read 10 million energy bills rise.
Carers
Carer’s allowance is another benefit that many miss out on through a misbelief that the help isn’t meant for them.
The charity Carers UK estimates that nearly 300,000 carers are missing out on a total of £840 million of allowances every year. The problem stems from the fact that many people with extensive caring responsibilities don’t see themselves as carers - just good relatives or friends.
But not claiming these allowances can lead to carers cutting back on essentials like food and heating in order to make ends meet. You can find full information about whether you’re eligible for this allowance by visiting the direct.gov carers website or heading to the Carers UK site.
For more on carers and care homes read The looming care crisis for the elderly.
This tip is absolutely vital to know if you want to make the most of your pension pot at retirement.
Tax credits and housing benefits
Earlier this year, a coalition of charities including Save the Children and Age UK outlined £16 billion of benefits including tax credit and benefit and housing allowance that go unclaimed every year.
The charities called on the government to advertise the fact that these benefits go unclaimed and encourage the public to take them up. But with the hole in the country’s finances that the government is currently trying to fill, it’s no surprise that politicians keep quiet about these unclaimed allowances.
Again, many people do not claim tax credits and housing benefit because they either don’t realise they’re eligible or think it’s not worth it as the welfare system is too complex. The elderly are particularly likely not to claim – Age UK estimates that pensioners in Britain miss out on £5.4 billion of benefits each year. That’s despite 1.8 million of them living in poverty.
These benefits include pension credit, which could boost income by over £30 per week and council tax benefit which would make the average pensioner £728 richer every year.
But it’s not just the poor and elderly who are missing out on allowances. Working tax credits for those on low incomes could earn you an extra £1,600 every 12 months. And if you’re responsible for a child you may be eligible for Child Tax Credit as well.
The best way to find out exactly what benefits you’re eligible for is to head to the website Turn2us.
State benefits will always be a controversial subject – especially in the current financial climate. However the ‘claimant culture' stigma should not put you off getting help that may improve your income and quality of life.
Of course, there will always be those that abuse the system. But we shouldn’t let them stop the system from working for those that really need it by assuming that everyone that claims benefits is somehow getting one over on those that don’t.
I certainly don’t see myself as a scrounger for signing on (despite this article’s headline!) and look forward to paying back all the benefits I claimed in my next few wage packets!
To read more about the benefits system and how it’s set to change under the current government head to Cut their benefits and force them to work!
What do you think?
Is there a lazy ‘claimant culture’ in this country? Should the government be encouraging people to claim benefits when it’s also trying to deal with a massive black hole in the country’s finances?
Let us know what you think in the comment box below.
More: Public sector pension crisis Save £££ with an online energy plan