Lib Dems hit out at council after discovering £118m of unclaimed benefits

A local Liberal Democrat party has hit out at its Labour-run council after discovering that £118million worth of benefit support payments have gone unclaimed in the borough.

The unclaimed support payments in Merton – which covers Wimbledon, Mitcham, Morden and Raynes Park – amounts to 60,000 missed benefits claims each year.

The new Liberal Democrat MP for Wimbledon, Paul Kohler, has proposed that Merton council identify and contact those not claiming the benefits they are entitled to. 

Lib Dem councillors said the council confirmed it had made “no assessment of the scale of unclaimed benefits in the borough”. 

Cllr Billie Christie, Cabinet Member for Finance and Corporate Services, said that the council is working with Policy in Practice on its benefit take-up and pension credit campaigns which has seen more than 200 residents contacted and encouraged to take up their pension entitlements.

Mr Kohler said:  “Thousands of my constituents are completely unaware that they qualify for certain benefit support. Our proposal was about putting people’s money back in their pockets, where it belongs.

“My message to residents is this: don’t assume that you’re not eligible. Contact Citizens Advice or use an online benefit calculator to check what you’re entitled to.

“And my message to local Labour councillors is: don’t fail residents simply because you’re too proud to accept that sometimes other parties suggest the right thing to do.”

Research by Policy in Practice, a data analytics company, estimated that £23billion of benefit support was unclaimed across the UK in 2024. Their assessment was that £118million was in Merton.

This includes £58million of Universal Credit, £35million of Child Benefit and £8million of Pension Credit. 

Claiming child benefit alone would be worth £1,900 each year to the average family in Merton.

Residents are also missing out on benefits such as Social Broadband and Water Tariffs, the Warm Homes Discount, and a free TV License, the data shows. Claiming this support would save the average family £670 every year.

The Lib Dems said that barriers to claiming the right level of support include a lack of awareness of eligibility criteria, the complexity of the welfare system, and digital exclusion.

In 2023, the Greater London Authority worked with Policy in Practice to trace more than 2,300 pensioner households, helping each of them to claim an average of more than £3,800. For every £1 invested in the Pension Credit Campaign, a return of £98 was achieved. 

Mr Kohler said: “The Greater London Authority’s Pension Credit campaign was a huge success, and the Liberal Democrats are urging Merton council to replicate this approach for all benefits. It’s a no-brainer – it costs the Council almost nothing.”

Cllr Christie said: “Ensuring that residents get the support they are entitled to is at the heart of the work the council does.

“The council set up a £3million Cost of Living Support Fund and has delivered 15 cost of living events, attended by more than 3,400 people, who were offered advice on what benefits are available and how to access them. Our online support hub, which signposts residents to benefit calculators and other guidance, has been accessed more than 4,000 times in the last year alone.

‘The council also supported 157 residents directly in the last year, resulting in an average of just under £300 more going to each household every month. A council funded disability specialist within Citizens Advice Merton worked with 100 people in the same period, and this resulted nearly half a million pounds worth of claims for residents.”

Pictured top: Liberal Democrat Paul Kohler (Picture: Paul Kohler)