Direct lender, Cashfloat, explains the most underclaimed benefit support in the UK
-- Cashfloat Loans, a regulated, responsible short-term direct lender with over a decade of expertise, has advised families to access benefit calculators rather than turning to unsecured loans, following reports that as many as 60% of adults seeking debt help are eligible for benefits they are not claiming.
The cost-of-living crisis, which peaked in 2022 when inflation rates hit over 11%, has led to thousands experiencing financial distress, with continued, albeit less dramatic, increases in living costs, including groceries, wage stagnation, and anticipated sharp rises in energy bills due to the conflict in the Gulf.
Statistics Indicating the Proportion of Qualifying Families Not Claiming Benefits
A debt charity found that 60% of the 1.5 million individuals who accessed a free online benefits calculation tool were able to claim support they previously hadn’t. The organisation discovered that:
- Low-income households missed out on Universal Credit assistance worth £9.6 billion
- Carer’s Allowance was unclaimed by 185,000 family carers, worth £588 million
- 135,000 people hadn’t claimed £636 million in the New-Style Jobseeker’s Allowance
Government figures from 2024 echo these findings, stating that every year around £22.7 billion is not claimed, including from local income assistance programmes such as help with council tax bills, with 8.4 million people entitled to claim an average of £2,700 per annum.
In many cases, households fail to apply for support during financial difficulty because they are either unaware that they are eligible or perceive a stigma around needing help, but in reality, higher living costs affect people from all walks of life, and the claims process is entirely confidential.
Analyses in November 2025 found that 61% of British adults have seen living costs increase, and 95% have experienced higher food prices. The impacts are disproportionately affecting lower-income households that don't have savings or expendable income.
Additionally, 45% of adults have stated that they have needed to cut back on essential outgoings or have started relying on credit, like short-term loans, without any capacity to save money.
When Claiming Benefit Support Is Preferable to Short-Term Borrowing
Failing to claim benefits has a direct impact on household finances, and there are also indications that families are becoming dependent on credit for everyday spending. This trend is causing concern within the regulated lending market.
Chief Operating Officer, Peter Kimpton from Cashfloat clarifies that, ‘Short-term credit is designed to help with cash flow gaps or unanticipated outgoings, rather than an ongoing system where households are repeatedly applying for more lending or using credit cards for crucial expenses like food and bills.
The danger is that, with more and more people encountering extreme financial distress, they may also resort to unethical lenders who charge incredibly high rates, creating cycles of debt that can be very difficult to recover from.’
The lender goes on to explain that claiming benefits won’t necessarily impact eligibility for future loans, provided the loans are affordable.
Peter says, ‘Most reputable lenders are unable to accept loan applicants who are solely reliant on benefit income, but will consider candidates provided they have other methods of earnings, often over a minimum threshold. The key is affordability.
Struggling with outgoings and living costs may be unnecessary for families who could be entitled to benefits, and this is a safe, controlled and accessible support system that is designed to provide help when you need it most, rather than a loan which could further impact your financial well-being.’
Advice for Households Unsure About Eligibility for Benefit Support
Benefits calculators are freely available via the Gov.uk site and charities like Turn2us. Individuals can enter information about their income, savings, benefits, pensions, council tax and outgoings to quickly find out whether there are benefits they should be claiming.
Those using online calculators will also need to submit accurate information about their circumstances, such as whether they live with a partner, spouse, or children, and any family members receiving care or living with long-term ill health.
Calculators will provide results based on the information provided, enabling families to begin the claims process or see with certainty which income support they should qualify for.
About the company: Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by The Financial Conduct Authority.
Contact Info:
Name: Ofer Valencio Akerman
Email: Send Email
Organization: Cashfloat
Website: https://www.cashfloat.co.uk/
Release ID: 89186132
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