Vulnerable people missing out on benefits due to online tool, charity claims

A government-led shift towards digital-first services is leaving millions of pounds in essential benefits unclaimed by the UK's most vulnerable citizens, a leading charity has warned. The Money and Mental Health Policy Institute estimates that £24 million in financial support goes unclaimed annually because individuals struggling with poor mental health are directed to online calculators they cannot navigate, exacerbating debt and personal crises amid a spiralling cost-of-living crisis.

The findings highlight a critical disconnect between the push for digital efficiency and the complex realities faced by those most in need of support. While online tools are intended to simplify access, the Institute argues they are becoming a barrier for people who lack digital skills, internet access, or the cognitive capacity to manage complex online forms while in distress.

Why it matters: The human cost of the digital divide

The consequences of this digital barrier are not just financial. For many, it's a direct path to destitution.

Helen Fisher, 69, experienced this firsthand when she had to stop working to become a full-time carer for her husband, Ken, after he suffered a debilitating stroke. The family’s finances quickly unravelled.

"I was at the end of the road as I could not afford to feed Ken and [daughter] Jemma and to heat our home," Ms. Fisher told the BBC. With bailiffs demanding council tax and the threat of energy disconnection and home repossession looming, she was contemplating suicide.

The turning point came not from an app or a website, but from a human being. An adviser visited her home, sat with her for hours, and meticulously went through her paperwork. This comprehensive, in-person benefits check unlocked the support they were entitled to and, in Ms. Fisher's words, saved their lives.

Now running an advice service herself, she fears the system has become even more impersonal. "I feared people were now being sent to online services that left them confused and missing out when their finances were already severely stretched," she said. "It means they will get into further debt and more and more brown envelopes will come through the door."

The Core Problem: When "Digital by Default" Fails

The Money and Mental Health Policy Institute’s report points to a systemic issue rooted in the "Digital by Default" strategy for public services. While intended to streamline processes, it inadvertently penalises those it should be helping most.

• Cognitive and Mental Barriers: Navigating multi-page online forms requires focus, organisation, and memory—faculties that are often significantly impaired by mental health conditions like depression, anxiety, and PTSD. The stress of financial hardship itself can create a "scarcity mindset," further reducing a person's ability to handle complex tasks.

• Digital Exclusion: According to Ofcom, approximately 1.5 million UK households have no internet access. Vulnerable groups, including older people, those with disabilities, and low-income families, are disproportionately affected. For them, an "online-only" option is no option at all.

• System Complexity: The UK benefits system is a labyrinth of interlocking rules, entitlements, and eligibility criteria. Online calculators may struggle to capture the full nuance of an individual's circumstances, such as fluctuating income, caring responsibilities, or specific disability needs, potentially providing inaccurate or incomplete information.

By the Numbers: The Scale of Unclaimed Support

The £24 million figure from the Money and Mental Health Policy Institute represents only a fraction of the total "entitlement gap."

• The Mental Health Gap: The £24 million figure specifically refers to the estimated value of unclaimed benefits like Personal Independence Payment (PIP) and Universal Credit by people with mental health problems who are unable to navigate the claims process.

• The Broader Picture: The issue extends far beyond this specific group. Research from policy analysis firm Policy in Practice in 2023 estimated that a staggering £19 billion in total benefits goes unclaimed across the UK each year. This suggests a systemic failure to connect people with the support they are legally due.

• The Cost of In-Person Advice: The decline in face-to-face support is a key driver. Decades of funding cuts to local authorities and charities like Citizens Advice have shuttered many of the very services that provide a lifeline for individuals like Helen Fisher.

The Path Forward: A Hybrid Approach

The report does not advocate for scrapping digital tools entirely. They offer convenience and speed for the millions who can use them effectively. Instead, the charity calls for a more balanced, hybrid model that ensures no one is left behind.

Key recommendations include:

• Guaranteed Access to Alternatives: The government and its agencies, particularly the Department for Work and Pensions (DWP), must ensure that robust, well-funded, and widely publicised offline alternatives—including telephone and face-to-face support—are available for anyone who needs them.

• A "No Wrong Door" Policy: Individuals should be able to initiate and complete their claims through the channel that best suits their needs, without being forced down a digital-only path.

• Investment in Advice Services: Central government must recognise the vital role of community-based advice services and provide the long-term funding necessary for them to help vulnerable people navigate the system.

For now, the risk remains that the drive for efficiency will continue to overshadow the urgent need for accessibility. Without a fundamental change in approach, experts warn that the most vulnerable will continue to fall through the cracks, with severe consequences for their health, housing, and well-being—and a rising tide of brown envelopes that represent crises that could, and should, have been averted.