Lloyds Bank has unveiled a new app feature helping customers discover thousands of pounds in benefits and financial support they might be missing out on.
The tool, which has already assisted thousands during initial testing, helps identify if customers could be eligible for various forms of support including council tax discounts, energy grants and pension credit.
Some households could be missing out on up to £5,772 per year in unclaimed benefits, according to recent analysis.
The calculator aims to simplify the complex benefits system by showing customers exactly what they might be entitled to claim.
The scale of unclaimed benefits across the UK is staggering, with eligible households missing out on £27billion in total support, according to Policy in Practice.
Universal Credit makes up the largest portion, with more than 1.4 million people failing to claim their share of £8.3billion in available support.
Other unclaimed benefits include £5.2billion in attendance allowance and nearly £2.3billion in Carer’s Allowance.
Lloyds Bank is urging customers to check their eligibility
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Pension credit sees 760,000 families missing out, with £1.5billion going unclaimed, and a further £1.7billion in child benefit remains unclaimed by eligible households.
The new Lloyds app calculator begins by asking customers basic questions about their household income, number of children and living situation. Based on these responses, it provides an initial estimate of potential benefit eligibility.
Customers can then access a more detailed calculator for a comprehensive assessment. The tool provides a final summary with direct links to relevant Government websites for making claims.
Early testing has shown Universal Credit, Council Tax discounts and Child Benefit are the most commonly identified forms of support through the calculator.
Individual households could be missing out on substantial yearly support, with Universal Credit offering up to £5,772 annually for eligible claimants.
The monthly Universal Credit standard allowance starts at £393.45 for single people over 25, and £617.60 for a couple who are both over that age.
Council tax support is going unclaimed by almost 2.3 million people, worth an average of £1,464 for working-age claimants and £1,670 for pensioners
One in ten of those entitled to child benefit do not claim, meaning the parents of 838,000 kids may be missing out. Child Benefit is worth up to £1,331 a year for a first or only child and up to £881 a year for additional children.
This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every four weeks or £16.95 a week for their siblings
Those eligible for Pension Credit could be missing out on £1,900 per year, with the benefit available to those over state pension age with weekly income below £201.05 for singles or £306.85 for couples.
Pension credit claimants can also access additional support, including free TV licences for over-75s and help with council tax.
Tamara van den Ban, customer propositions director at Lloyds, said: “Billions of pounds of support is provided for those who need it through benefits, but many customers don’t know how to navigate the system or how to make a claim.”
Steve Webb, partner at pension consultants LCP, added: “I would encourage anyone on a disability benefit whose condition has worsened or anyone on a housing benefit whose rent has gone up to make sure that DWP are aware of their latest situation.”
The DWP emphasises that people’s circumstances can change, potentially making them eligible for higher payments than they currently receive.
The benefits calculator is also available to customers of Halifax and Bank of Scotland, which are part of Lloyds Banking Group. Lloyds Bank has assured customers that any information provided when using the calculator is strictly protected.
The data is only used to calculate benefit eligibility and is not shared or used elsewhere.
For those who don’t use these banks’ apps, free online calculators are available through Policy in Practice, entitledto, and Turn2us websites.
The DWP also offers support through its 600 Jobcentres and gov.uk, with Citizens Advice providing free Help to Claim assistance.