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

LONDON – A systemic shift towards digital-first services is causing many of the UK's most vulnerable citizens to miss out on an estimated £24 million in essential benefits each year, a leading charity has warned. The over-reliance on online calculators and application portals is creating a significant barrier for individuals who lack digital skills, access, or the capacity to navigate complex systems during times of crisis.

The Money and Mental Health Policy Institute (MMHPI) claims that while these tools are intended to streamline access to financial support, they are inadvertently excluding the very people who need it most. This "digital divide" is pushing already struggling households into deeper financial and psychological distress.

As the cost of living continues to exert pressure on household budgets, the failure to connect eligible people with support has severe consequences, leading to increased debt, housing insecurity, and a greater strain on public health services.

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The Core of the Claim: A System Failing its Users

The central argument from MMHPI is that the official pathway to claiming benefits—often beginning with an online calculator—is fundamentally inaccessible for a significant portion of the population.

These individuals are frequently entitled to critical support like Universal Credit, Pension Credit, and disability benefits but are unable to complete the first step. The decline in available face-to-face advisory services has compounded the problem, leaving many with nowhere to turn.

The charity's analysis highlights several key barriers:

• Digital Exclusion: Many older people, individuals with severe mental health conditions, or those with learning disabilities lack the skills, confidence, or access to technology required for online-only applications.
• Complexity Overload: During a crisis—such as bereavement, illness, or job loss—even digitally literate individuals can be too overwhelmed to navigate complicated forms and financial jargon without human guidance.
• Lack of Alternatives: The report suggests that while online services are promoted as the primary route, accessible offline alternatives like in-person appointments or dedicated phone support have become increasingly scarce.

Helen Fisher, who now runs a debt and benefits advice service after her own experience with financial crisis, fears the current system is a trap. "It means they will get into further debt and more and more brown envelopes will come through the door," she told the BBC, describing the cycle of escalating stress and financial penalties.

The Human Cost: Helen's Story

The stark reality of this digital exclusion is powerfully illustrated by the experience of Helen Fisher, 69. Her story demonstrates the profound difference that personalised, face-to-face support can make.

A Life on the Brink

Years ago, Helen's life unravelled after she was forced to give up her job to become a full-time carer for her husband, Ken, who had suffered a debilitating stroke. The sudden loss of income plunged the family into a financial spiral.

They quickly fell behind on mortgage payments, council tax, and utility bills. The threat of their home being repossessed became terrifyingly real.

"I was at the end of the road as I could not afford to feed Ken and [daughter] Jemma and to heat our home," Helen recalled. "We had bailiffs wanting council tax. The energy was about to be disconnected. I could not afford petrol for the car to take Ken to medical appointments."

The immense pressure and sense of hopelessness led Helen to contemplate suicide, feeling she had no way out.

The Turning Point

The family's salvation came not from a website or a chatbot, but from a human being. An adviser from a local service visited Helen at her home, sitting with her for hours to meticulously go through her paperwork.

This comprehensive, in-person benefits check uncovered significant financial support the family was entitled to but completely unaware of. The intervention was transformative. It halted the repossession proceedings, cleared their immediate debts, and provided a stable income, allowing Helen to care for her husband without the constant fear of financial collapse.

Her experience underscores a critical gap in the current system: the inability of an online tool to replicate the empathy, patience, and detailed guidance of a trained adviser dealing with a complex and emotionally charged situation.

Context: The 'Digital by Default' Strategy

The issues raised by MMHPI exist within a broader context of the UK government's long-standing "digital by default" strategy. The aim has been to move public services online to improve efficiency and reduce administrative costs.

While this has benefited many, critics argue it has been implemented without adequate safeguards for those who cannot participate in the digital world.

Key groups disproportionately affected include:

• The Elderly: Many older citizens are not digital natives and may lack the confidence or equipment to manage their finances online.
• People with Mental Health Issues: Conditions like anxiety, depression, or PTSD can severely impact concentration and executive function, making multi-step online processes impossibly daunting.
• Those with Disabilities: Physical or cognitive disabilities can create practical barriers to using standard websites and online forms.
• Rural and Low-Income Households: A lack of reliable broadband or the funds to afford internet access and a suitable device remains a significant hurdle for many.

The £24 million in unclaimed benefits is not just a number; it represents a direct transfer of hardship onto individuals and a potential false economy for the state. Unclaimed benefits often lead to downstream costs in other areas, such as emergency housing, NHS treatment for stress-related illnesses, and greater demand on food banks.

Implications and The Path Forward

The findings from the Money and Mental Health Policy Institute serve as a critical call to action for policymakers and government departments, including the Department for Work and Pensions (DWP).

The primary implication is that a one-size-fits-all digital approach is not fit for purpose. To ensure benefits reach those they are designed to protect, a multi-channel strategy is essential.

Recommendations emerging from this issue include:

• Investing in Face-to-Face Advice: Re-funding and expanding the availability of skilled, in-person benefits advisers through local councils and third-sector organisations like Citizens Advice.
• Improving Offline Routes: Ensuring that high-quality, accessible telephone support lines and paper-based application processes are maintained and clearly advertised as equal alternatives to online portals.
• Designing for Inclusion: Developing digital tools with the most vulnerable users in mind, incorporating simplified language, accessibility features, and the ability to save progress and receive human help if needed.

Ultimately, the goal must be to create a system where technology serves as a gateway, not a gatekeeper. For thousands of people like Helen Fisher, access to a compassionate expert is not a luxury but a lifeline that stands between stability and destitution.