MARTIN Lewis has issued an urgent warning to millions of households who are missing out on vital benefits to make a claim.

Every year, people lose out on an estimated £23 billion in benefits and support due to stigma or the assumption that they are not eligible.

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In the MoneySaving Expert newsletter Martin Lewis said: “Billions in benefits goes unclaimed each year – most by workers or pensioners who have paid into the system for yonks and are in need of help.

‘Even some with higher incomes are due – don’t assume ‘it’s not me’.”

The consumer champion has rounded up seven benefits that are massively underclaimed.

Here we explain whether you are eligible.

Universal Credit

Around 1.4 million people miss out on an average of up to £5,800 in Universal Credit each year.

The monthly benefit is a “catch-all” for those of working age who have low or no income and living and housing costs.

Households with incomes of up to £35,000 a year are the most likely to be missing out.

But if you have kids then high childcare costs and rent could mean you may still be eligible if your household income is up to £60,000 a year.

You can make a claim through the Government’s website or by calling the Universal Credit Helpline on 0800 328 5644.

Attendance Allowance

Up to 1.1 million pensioners are missing out on at least £3,778 a year in Attendance Allowance.

This benefit is not mean-tested and gives a fixed payout of £3,778 a year, or £5,644 a year to cover some of the cost of providing care to someone who needs it.

Those who needed help with day to day tasks such as washing or eating and have done so for more than six months could be missing out.

You can make a claim if you need this support during the day or at night.

If you have a condition such as Parkinson’s, dementia, terminal illness or blindness then you could be missing out.

You can apply for Attendance Allowance through the Government’s website or by post.

For help with your application, contact the Attendance Allowance helpline on 0800 731 0122.

Council Tax Support

Up to 2.25 million people miss out on up to £1,500 a year in council tax support.

Each council runs its own scheme, so the amount you can get will depend on where you live.

In some regions it can cut your Council Tax bill by up to 100%.

If you qualify for means-tested benefits such as Universal Credit or Pension Credit then you are often due a Council Tax reduction.

But these are not made automatically and you must apply, which is why so many people miss out.

To apply you will need to contact your local council.

You can find your local council here.

Carer’s allowance

Approximately 530,000 carers miss out on up to £4,250 each year.

Carer’s allowance is a specific payment for people who act as unpaid carers.

This can include a family member, spouse, child or even someone that you are not related to.

You are likely to be missing out if you care for someone who usually gets Attendance Allowance, a Personal Independence Payment or Disability Living Allowance.

You may also be eligible if you spend more than 35 hours a week helping with everyday tasks such as washing or cooking and earn less than £151 a week or have a low State Pension.

If you care for someone for less than 35 hours a week then you may be able to claim Carer’s Credit, which helps build National Insurance years to give you a greater State Pension.

You can also back-date it, which could boost the amount you receive even more.

To apply visit the Government website.

Pension Credit

The Government estimates that around 760,000 pensioner households are missing out on Pension Credit, which is worth £3,900 a year on average.

Pension credit tops up your income.

It is still worth claiming even if you are only due 50p a week as it opens the door for other support such as the Winter Fuel Payment, Council Tax Reduction and free TV licence.

It’s worth checking if you could claim it if you are aged over 66 and have a weekly income of below £235 (£350 if you are a couple and are both State Pension age).

You can apply through the Government’s website or by calling the Pension Credit claim line on 0800 99 1234.

Housing Benefit

Around 294,000 pensioners miss out on an average of £4,400 a year in help with their rent.

For those who are eligible and aged under 66 support for housing costs forms part of Universal Credit.

This is not the case with those of State Pension age.

Renters who are eligible for Pension Credit and are on a low income are likely to be missing out.

When you apply for Pension Credit you can usually make an application for Housing Benefit at the same time.

You can apply for Pension Credit online or contact the Pension Service to claim.

You can call the Pension Service on 0800 99 1234.

The Pension Service will then send details of your claim for Housing Benefit to your council.

If you already get Pension Credit you can apply through your local council.

Free School Meals

Approximately 470,000 families are missing out on free school meals, which are worth £490 a year.

Free school meals are served to eligible under-18s who are still in school or college.

Many people on Universal Credit with very low or no income are missing out as they do not realise they can only apply once they have received their first benefit payment.

Others lose out as they do not know they may need to re-register at the start of every year for each one of their children.

You can check if your child can get free school meals in England here.

To apply you will need to contact your local authority.

Can I get other support through my benefits?

Claiming benefits often opens the door to other discounts such as broadband social tariffs.

If you are successful in claiming any of these benefits then you should check if you are eligible.

If you are on a low income but do not qualify for benefits then help is still available.

You may still qualify for a water social tariff, so check with your supplier.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Hidden Fees Alert: How Credit Card Companies Are Charging You Without Warning: Credit Card Fees Under Fire – How to Avoid the $1.99 Paper Statement Charge

Two major credit card companies are facing backlash for quietly imposing a $1.99 fee on consumers opting for paper statements. In a push to encourage customers to switch to digital statements, these companies are penalizing those who still prefer traditional paper billing. However, there are ways to avoid this fee—by opting into electronic statements or contacting your card issuer for potential exceptions.

The Shift to Digital Statements and the $1.99 Fee

Credit card issuers, including Synchrony Bank and Citibank, have introduced this fee for customers who choose paper statements instead of going digital. Synchrony Bank, which offers more than 100 co-branded and store-affiliated credit cards—such as Sam’s Club Credit Card, Lowe’s Store Card, and Amazon Store Card—is one of the key players imposing the charge. Citibank followed suit in late 2022, requiring customers to switch to paperless billing to access their accounts online or through the Citi Mobile App.

Despite the shift, legally, credit card companies must still offer paper statements, but customer consent is required for paperless billing. Many customers, like Alicia Galowitsch, find themselves facing additional costs. “It’s very tight for us,” she told NBC, explaining how these fees have impacted her household finances. “We had to start going to a food bank. It’s going to be $11.94 [in fees],” she shared, highlighting how small fees can quickly add up for families managing multiple accounts.

For some, paper statements are essential for organization, particularly when managing multiple credit card accounts. Ms. Galowitsch added, “If I’m not here, the payments are going to be late because [my husband] Mark’s not going to know what to do.” For people who rely on paper statements to stay organized, these new fees feel like an unfair burden.

Related: Should I use my credit card for big purchases?

Growing Consumer Frustration and Security Concerns

Beyond the financial strain, many customers are also concerned about the security risks associated with digital statements. Those who aren’t comfortable with online banking worry that going paperless could leave them vulnerable to fraud. In response, frustrated credit card holders have taken to forums like Reddit to voice their discontent.

One Reddit user shared, “I received a letter today about my PayPal Mastercard. Starting in April, they will impose a charge if you don’t opt for electronic statements.” The fee in this case is $2.50—slightly higher than Synchrony’s—but still a source of frustration. Another user mentioned they were closing their account entirely due to the fee.

This latest wave of fees follows recent changes by credit card giants Visa and American Express, which subtly reduced the value of rewards points. With Americans sitting on millions of credit card points for flights, hotels, and cash-back options, the impact of inflation has caused these points to lose value. Once worth roughly one cent per point, their purchasing power has dropped by 20% since 2018, according to data from the Bureau of Labor Statistics.

How to Avoid the Paper Statement Fee

If you’re being charged for paper statements, here’s how you can avoid paying unnecessary fees:

• Switch to electronic statements: Opting for digital billing is the simplest way to sidestep the fee.
• Request an exception: In some cases, particularly for elderly or disabled customers, credit card companies may waive the fee upon request.
• Track your statements online: Even if you prefer paper, familiarizing yourself with online banking can help you stay on top of your finances.

Signs Your Credit Has Been Compromised

Amid concerns about switching to online statements, it’s crucial to keep an eye out for signs that your credit may have been compromised. According to Michael Bruemmer, vice president of Experian Global Data Breach Resolution, these warning signs should not be ignored:

• Unrecognized charges on your credit card or bank account
• Unexpected credit checks appearing on your report
• Receiving unfamiliar bills
• A sudden drop in your credit score

“If you notice any of these, it could be a red flag that someone is using your identity,” Bruemmer warns. Early detection is key to minimizing potential damage to your credit.

Conclusion

As credit card companies push customers toward digital billing, it’s important to stay informed about fees and how they can impact your finances. Whether you’re holding onto paper statements for organization or security reasons, knowing how to avoid fees can save you money. Stay vigilant about your accounts, and keep an eye out for any signs of fraud to protect your financial health.

Good morning and welcome to your Morning Briefing for Wednesday 23 October 2024. To get this in your inbox every morning click here.

AHR Group’s transparency is its ‘USP’

The success of AHR Group is due to the “transparency of the whole business” whereas the financial sector has been “historically opaque” which has given the international financial advice firm a “USP”.

This is what AHR Group managing director & co-founder William Burrows told Money Marketing when explaining how the firm first came about.

AHR Group was founded in 2020 following the merger of UAE-headquartered Arlo Wealth and Harrison Rowe, an international advisory business.

Founders Burrows, Tyla Phillips, Asad Sheikh and Daniel Waterman were at Harrison Rowe whilst Daniel Dickinson and Marc Beattie were at Arlo Wealth.

‘Possibility’ the chancellor may create a new tax during the Budget

There is a “possibility” that chancellor Rachel Reeves may create a new tax during the Budget on 30th October.

This is what Barnett Waddingham self-invested pensions technical specialist James Jones-Tinsley told Money Marketing.

“There is a lot of precedent that this may happen,” and as Reeves is early into her career as chancellor she could be “experimental”.

Jones-Tinsley predicts that the new tax would be likely to target the ultra-wealthy who traditionally vote Conservative.

Still, a new tax brings with it, a lot of “unprecedented” changes as well as legal challenges as ultra wealthy people tend to have lawyers, Jones-Tinsley said.

In Conversation With… Jordan Sriharan: Navigating Turbulent Waters – A Market Outlook and Strategies for Financial Advisers

Join Kimberley Dondo and Jordan Sriharan, Fund Manager at Canada Life Asset Management, as they discuss the current market landscape and the impact of global trends on the UK.

In this episode, Jordan shares his revised outlook, outlines strategies for mitigating risk, and identifies potential opportunities for UK investors.

Tune in for valuable insights and actionable takeaways to help you navigate the turbulent waters and guide your clients through these challenging times.

Quote Of The Day

Lloyds is the first major UK bank to report third-quarter earnings, and it hasn’t disappointed. In tune with recent trends, impairment charges were better than expected and drove a good chunk of the pre-tax profit beat, as borrowers continue to stand firm

– Hargreaves Lansdown senior equity analyst Matt Britzman on Lloyds Q3 earnings with underlying profit coming in higher than expected

In Other News

Allfunds a B2B WealthTech platforms for the fund industry, which offers fully integrated solutions for both fund houses and distributors, has releases a trading update for the third-quarter period ended 30 September 2024.

Its total assets under administration (AuA) increased by 10% since December to €1,522bn, representing a 15% increase year-on-year.

Platform service AuA increased by 19% to €1,102bn year-on-year with “strong” net flows in the quarter (€23bn) continuing the positive evolution since Q1.

Total net revenues of €154m, representing a 16% increase year-on-year underpinned by significant growth in both net platform and subscription revenues.

Allfunds chief executive officer and founder Juan Alcaraz said: “Allfunds delivered another quarter of robust, diversified growth. We are proud to announce a new record milestone of €1.5trn in AuA, driving a 16% increase in revenues year-on-year. Our core platform business continues geared to an improving macro cycle. Our dedicated commitment to innovation and technology allows us to deliver a unique one-stop shop proposition, following the launch of our top-leading Alternatives solutions platform and expanding into our recently announced ETP platform.

“Our ongoing digital transformation efforts are central to this success, enhancing our platform’s capabilities and client experience, thereby establishing us as the premier Wealthtech partner for our clients. In this quarter, we are also pleased to announce the completion of our share buyback programme, further demonstrating our commitment to delivering value to our shareholders.”

Stocks drift, dollar and gold rise as traders weigh US rates, election (Reuters)

Donald Trump accuses UK Labour party of interference in White House race (Financial Times)

Local transport funding at risk as Reeves considers big budget cuts (Guardian)

Did You See?

Industry experts have urged the government to “keep up the momentum” after it gave an update on the Pensions Dashboard Programme yesterday (22 October).

Pensions minister Emma Reynolds announced that the MoneyHelper Pension Dashboard service will be made available before commercial dashboards.

Reynolds added that it is too early to confirm a launch date to the public.

The Department for Work and Pensions (DWP) previously said the launch date will only be announced once it is assured most pension schemes have connected and the dashboards are working well.

The Pension Dashboards Programme (PDP) has been given the task of developing the Pension Dashboards ecosystem and organising for most schemes to connect to it.

Pension schemes must connect to the dashboard ecosystem by October 2026 at the latest, but have been urged to connect earlier, starting from April 2025.

The FCA is expected to publish the final rules of the governance framework for commercial dashboards before the end of the year.

Dan Cooper has the full story.

There is a “possibility” that chancellor Rachel Reeves may create a new tax during the Budget on 30th October.

This is what Barnett Waddingham self-invested pensions technical specialist James Jones-Tinsley told Money Marketing.

“There is a lot of precedent that this may happen,” and as Reeves is early into her career as chancellor she could be “experimental”.

Jones-Tinsley predicts that the new tax would be likely to target the ultra-wealthy who traditionally vote Conservative.

Still, a new tax brings with it, a lot of “unprecedented” changes as well as legal challenges as ultra wealthy people tend to have lawyers, Jones-Tinsley said.

The creation of a new tax depends on how “bold” Reeves is and how much left the government needs to fill of the “black hole”.

In July, Reeves vowed to “fix the foundations of our economy” and aimed to plug a reported £22bn black hole.

This announcement was made in response to the findings of the Treasury’s internal audit of public finances.

The audit showed the £22bn gap between tax revenues coming in and expected spending.

She accused the previous government of “covering up the true state of the public finances”, although the Conservatives argues she would have been aware of this before taking office.

Jones-Tinsley believes that Labour were expecting a “black hole but not of that magnitude”.

Regarding the possibility of a new tax, the “devil will be in the detail” but it many not be the “panacea” the chancellor is hoping it will be.

However, the trouble is she has to fill the £22bn “black hole quickly” and the Labour Party’s 2024 manifesto pledged not to increase national insurance, income tax and VAT.

As a chancellor with “limited options available to her without breaking manifesto pledges”, a new tax could be possible.

Jones-Tinsley added: “If she had the chance to rewrite the manifesto pledges again, she would most likely want to make some changes”.

Jones-Tinsley made these comments as a majority (87%) of clients working with Independent Financial Advisers (IFAs) are anxious about the upcoming Budget.

According to a survey from Opinium, almost half (47%) expressed significant unease.

Clients’ top concerns include the possible scrapping of the 25% tax-free lump sum accessible at the age of 55 (70%), changes to capital gains tax rates (44%) or inheritance tax (47%), and potential pension reforms (54%).

The anxiety surrounding these areas has led to an increase in requests for advice (50%), as individuals seek reassurance on how to prepare for potential changes to the financial landscape.

HUNDREDS of struggling households could receive direct payments worth hundreds of pounds into their bank accounts this winter.

The cash support is available through the government’s Household Support Fund (HSF).

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Earlier this month, the government extended the scheme for the sixth time, releasing £421 million to be distributed among councils. 

This funding will be allocated to vulnerable residents from now until March 2025.

Each local authority gets a different proportion of cash depending on the size of the catchment area, population, and number of vulnerable households.

This means the voucher or grants on offer will vary by location, so you must check to see what you can get and how your council will pay you.

For example, struggling residents and families who live in Torridge can apply for free cash grants directly to bank accounts worth £100s.

These grants can be used to help households with their energy and water bills.

Others may be eligible for cash vouchers to be spent on food at their local supermarket.

Torridge Council says that the fund can also be used to help hard-up households pay for new white goods, including fridges, freezers, ovens and slow cookers.

It added that in exceptional circumstances, the fund could also help those with emergency housing costs.

During the previous round of the council’s Household Support Fund, the local authority assisted 247 individuals after receiving £192,000 from the central government.

In the scheme’s sixth round, Torridge District Council has been allocated £210,000 to distribute to residents most in need.

To be eligible for the latest round of funding, you must be experiencing some form of financial hardship.

To find out more and apply, visit bpag-encompass.org.uk/projects/torridge-household-fund/.

As part of the application, you’ll need to include your name, email address and National Insurance number.

You’ll also be expected to explain what type of support you require and a detailed description of your financial situation.

What if I don’t live in Torridge?

What you can get depends on where you live and what support is available.

Each local council receives a portion of the £421million fund, which is then distributed to residents based on need.

Some councils may provide direct cash payments, while others issue vouchers to help cover essentials like energy or food.

How the money is distributed will vary, so it’s important to check with your local authority.

For example, Birmingham City Council has announced £200 payments to help residents with winter costs.

Other councils, like Coventry, have offered community supermarket schemes, where households can pay £5 a week and get a basket of food worth up to £25.

However, there are changes to the scheme this time around.

Some councils have introduced monthly caps on funding, meaning once the allocated amount for the month is spent, applications are paused until the following month.

This is to ensure that everyone has a chance to receive support, but it does mean you should apply as soon as possible.

Who’s generally eligible for the scheme?

The Household Support Fund is designed to help households in financial difficulty, particularly those on low incomes or those who don’t qualify for other forms of government assistance.

If you’re struggling to make ends meet due to rising living costs, you could be eligible for support.

The criteria you need to meet will vary depending on where you live.

You’ll likely need to prove your financial hardship when applying.

This can include showing evidence of your income, benefits or other forms of support you’re currently receiving.

For example, if you’re receiving Universal Credit or a council tax reduction, you could qualify.

But even if you’re not on benefits, you may still be able to get help if you can demonstrate financial hardship.

Do I need to apply?

Applications for the Household Support Fund are handled by your local council, and the process can vary depending on where you live.

Most councils offer online application forms, but if you need help completing an application, you can call your council’s customer service centre for assistance.

To apply, you’ll need to provide details such as your National Insurance number and may need to submit bank statements or benefit evidence.

If you’re applying for a family member or someone else, there’s also an option to upload supporting documents like benefit letters or pay slips to prove eligibility.

Some councils, such as Haringey, are issuing automatic payments to eligible residents, while others require residents to apply directly.

If you’re unsure of the process in your area, it’s best to check your local council’s website.

Join Kimberley Dondo and Jordan Sriharan, Fund Manager at Canada Life Asset Management, as they discuss the current market landscape and the impact of global trends on the UK.

In this episode, Jordan shares his revised outlook, outlines strategies for mitigating risk, and identifies potential opportunities for UK investors.

Tune in for valuable insights and actionable takeaways to help you navigate the turbulent waters and guide your clients through these challenging times.