Londoners missing out on billions in benefits as City Hall launches new push

Londoners are missing out on more than £4 billion in benefits every year despite the cost-of-living pressures facing households across the capital, new figures reveal. Mayor Sir Sadiq Khan has announced a £5 million package designed to help more residents claim financial support they are entitled to but are currently failing to access. City Hall says more than 170,000 Londoners have already been helped to claim over £108 million through its Family Financial Resilience Partnership since 2022.

But billions of pounds remain unclaimed, including Pension Credit, Carer’s Allowance and other forms of support. The funding will extend the programme into 19 boroughs over the next two years, with an estimated 29,000 additional families expected to receive help. Sir Sadiq said: “I’m committed to doing everything I can to support Londoners with the cost of living. “This money is making a big difference to help their daily lives and that’s why I’m providing further funding to ensure even more families on low incomes can get support.”

Deputy Mayor for Communities & Social Justice, Dr Debbie Weekes-Bernard, said many Londoners are still “completely unaware or unable to access the financial support that is available to them” despite the cost of living crisis. Research has suggested that complicated application processes, lack of awareness and concerns about claiming benefits remain major barriers. Policy in Practice, a social policy analysis firm, released a report last year which estimated more than seven million households nationally are missing out on around £24 billion in support.

City Hall hopes the latest expansion will help close what it describes as London’s £4 billion benefits gap as many households face another winter of financial pressure. Following a visit to the Barking Learning Centre Community and Family Hub in East London, Dr Weekes-Bernard said that extending the programme to more local authorities was crucial “as winter approaches and concerns about covering bills increase”. One service user at the centre, who received support following homelessness and domestic abuse, said: “When I first reached out for support, I was going through an incredibly stressful and difficult time.

I felt overwhelmed and worried about my situation and, most importantly, about the wellbeing and safety of my children. “The advice and referrals I have received have been incredibly helpful. They have helped me understand what support is available, what steps I can take, and where to turn when I need assistance. “Knowing that someone is listening to me, taking my concerns seriously, and helping me find the right support has made me feel less alone during a very challenging time.”