Millions of households across the UK may be missing out on financial support they are legally entitled to, according to figures highlighted by Nationwide Building Society, which has launched a free service aimed at helping people identify unclaimed benefits and cost-of-living support, The WP Times reports.
The country’s largest building society says its expanded Better Off Calculator indicates that eligible households could receive an average of £560 a month, or £6,720 a year, in additional income by claiming benefits they are currently not receiving. The findings underline the scale of unclaimed government support at a time when household budgets remain under pressure.
The initiative comes as higher living costs continue to affect both working and non-working families across the UK, with campaigners warning that complex eligibility rules and lack of awareness are preventing billions of pounds in financial assistance from reaching those entitled to it.
A service aimed at unclaimed support
Nationwide’s benefits calculator is designed to help households understand whether they may be eligible for a range of government benefits and financial support schemes that often go unclaimed. The tool assesses entitlement across multiple areas, including income-related benefits, tax credits and cost-of-living support, offering users a clearer picture of what help may be available to them.
Unlike many similar services, the calculator is accessible both online and via a dedicated telephone line, a feature Nationwide says is intended to address digital exclusion and ensure access for people who are unable or reluctant to use online tools. Since its launch seven months ago, Nationwide says the service has already identified around £75m a year in unclaimed benefits, highlighting the scale of financial support that eligible households may be missing.
More than 18,000 people have used the calculator to check their circumstances, with over 11,000 households discovering they could be entitled to additional financial support — in some cases amounting to several hundred pounds a month. The building society has stressed that the service is open to everyone, regardless of whether they hold an account with Nationwide, positioning the tool as a public support resource rather than a customer-only product.
Why so much support goes unclaimed
According to estimates highlighted by Nationwide, around £24bn in benefits goes unclaimed every year in the UK — a gap policy specialists say is driven less by “lack of need” and more by a system many households find hard to understand and even harder to complete, Renewz reports.
Working with social-policy data specialists Policy in Practice, Nationwide says three barriers repeatedly stop eligible people from claiming the UK government support they may be entitled to:
- Lack of awareness (benefits eligibility UK) — many households do not realise they qualify, particularly where support depends on income thresholds, housing costs, childcare arrangements or changes in circumstances. People in work are often least likely to check, assuming benefits are only for the unemployed.
- Complex application processes (how to claim benefits UK) — multiple forms, evidence requirements, identity checks and shifting eligibility rules can turn a simple question (“Am I entitled?”) into a time-consuming process. For some claimants, the need to submit information more than once — or to reapply after changes in income or rent — becomes a practical deterrent.
- Stigma and fear of judgement (benefits stigma UK) — Nationwide points to a persistent belief that claimingbenfits are “not for people like me”, even though around 40% of benefit payments go to people who are in work, underlining how common in-work support is across the welfare system.
Separate research from the Money and Mental Health Policy Institute suggests that psychological barriers significantly compound the problem. The organisation has found that stress, anxiety and fear of making mistakes during the claims process can deter eligible households from starting a claim altogether, particularly among people already facing financial pressure, long-term health conditions or unstable work patterns.
The research indicates that for many claimants the perceived risk of “getting it wrong” — including concerns about delays, overpayments or future repayment demands — can be enough to prevent engagement with the system, even where entitlement is clear.
Addressing digital exclusion
Nationwide Building Society says the decision to make its benefits calculator available by telephone was driven by concerns about digital exclusion in the UK, particularly among older people, individuals with disabilities and those without reliable internet access or confidence using online services.
The building society says it is the first financial services provider in the UK to offer a full benefits eligibility calculator through a telephone service, allowing users to speak directly to trained advisers. These advisers can guide callers through eligibility questions, explain how different benefits operate and clarify what information may be required before starting a formal claim.
By offering both online and offline access, Nationwide says it aims to reduce the practical and psychological barriers that prevent households from checking what government benefits and cost-of-living support they may be entitled to. The approach is intended to ensure that people affected by digital exclusion are not excluded from support simply because they struggle to navigate digital systems.
Nationwide argues that improving access to clear, human-led guidance is a necessary step in increasing take-up and ensuring financial support reaches those who are legally entitled to it, particularly at a time when billions of pounds in benefits go unclaimed each year.
“The system is too complex”
Kathryn Townsend, Nationwide Building Society’s Head of Customer Vulnerability, said millions of people across the UK were missing out on financial support not because they were ineligible, but because the benefits system remained difficult to understand and access.
“Millions of people across the UK are missing out on vital financial support they are entitled to — simply because the system is too complex to navigate,” she said.
Townsend said Nationwide was urging the government to simplify the system, improve public awareness and challenge the stigma that continues to deter eligible households from seeking help. She added that clearer processes and better guidance could play a significant role in ensuring financial assistance reaches households that need it most, particularly those under sustained financial pressure.
Support during the cost-of-living squeeze
The launch comes as cost-of-living pressures remain a central concern for households across the UK. Although inflation has eased from recent peaks, food prices, housing costs and energy bills continue to absorb a substantial share of household income, particularly among lower- and middle-income families.
Campaigners say that improving access to existing benefits and entitlements is one of the quickest ways to provide relief, without the need for new government spending programmes. Ensuring that eligible households are aware of — and able to claim — support already available could deliver immediate financial gains. Nationwide has stressed that its calculator does not replace official government application processes, but is intended to help people understand what they may be eligible for before beginning a formal claim.
Separate cash incentive for account switching
Alongside the launch of its benefits calculator, Nationwide Building Society is also offering a £175 cash incentive to customers who switch their current account from another bank.The incentive applies to both new and existing customers who move to a FlexDirect, FlexAccount or FlexPlus account. Nationwide says the payment is made within 10 working days of the switch being completed.
The building society has said the offer is available for a limited period, although it has not confirmed an end date. Customers are advised to check eligibility criteria and terms before starting the switching process.
A wider debate on access and fairness
Policy analysts say the apparent success of tools such as Nationwide’s calculator highlights broader questions about how accessible the UK’s welfare system is for those who need it. While eligibility rules are set by government, charities and financial institutions are increasingly stepping in to help people understand complex entitlements. Nationwide has urged ministers to consider simplifying the benefits system and improving public communication, arguing that the scale of unclaimed support reflects barriers to access rather than a lack of funding.
For households struggling to make ends meet, the building society says, checking eligibility could be a relatively simple step that makes a meaningful difference.
Read about the life of Westminster and Pimlico district, London and the world. 24/7 news with fresh and useful updates on culture, business, technology and city life: Nationwide bonus and £250 Lloyds cash drive Britain’s biggest bank-switching rush of 2026