MSPs urge action after up to £20 billion in benefits unclaimed in year

The Scottish and UK Governments have been urged to work together to increase the uptake of benefits among eligible people.

Holyrood’s Social Security Committee found claims are not made for a variety of reasons, including a lack of awareness, stigma and living in rural areas.

A report published by the committee on Wednesday found up to £20 billion of means-tested benefits had been left unclaimed across the UK in 2016-17.

It added the figure could be much higher due to a lack of accurate and comprehensive data on uptake rates.

In 2016, changes to the Scotland Act gave the Scottish Government new powers over benefits, leading to the formation of Social Security Scotland to manage and exercise the new powers.

The agency, which has its headquarters in Dundee, will be given complete control of the social security system in Scotland this year.

The committee concluded a “joint effort” by both Holyrood and Westminster should be adopted to ensure people are receiving payments they are entitled to.

The report said: “The committee recommends that joint working between the UK and Scottish Governments, to consider how best to encourage take-up of all benefits, should be discussed formally between both Governments.”

Currently, the Scottish Government is legally required to create a strategy to ensure maximum uptake but the UK Government has no such statutory duty.

Committee convener Bob Doris described the lack of strategy from Westminster as “deeply alarming”.

He said: “It is simply not good enough that billions in benefits continue to go unclaimed every year.

“It is absolutely vital we get more accurate data on the numbers entitled to benefits so that any communications strategies can be targeted at those in need who are missing out.”

He added: “Data-sharing across Governments and agencies is a key factor in improving take-up rates and we are adamant that GDPR must not be used as an excuse to not share data.

“It’s also crucial that welfare agencies are adequately funded and we are seeking increased and sustained funding for these agencies going forward.

“Our evidence has made it clear that both Governments must do more to work productively together to ensure people receive the benefits they are entitled to and remove any barriers which mean people miss out.”