People often misunderstand the DWP qualifying rules and miss out
Many people with a common health condition may be losing out on DWP benefit payments worth thousands of pounds. Experts are concerned that numerous people believe they don’t qualify as they don’t full understand the DWP rules.
Specialists at life insurance company Zurich have warned that people are failing to plan financially for the likelihood they will develop dementia. This comes despite the condition being the UK’s leading cause of death, with half of UK adults personally knowing someone affected by it. The financial burden of living with the condition can increase dramatically as the disease advances, with even mild dementia costing an average of £28,700 annually, rising to £80,500 per year for severe dementia cases.
Government support is available if you have a health condition such as dementia, but there’s a danger that people with the illness aren’t claiming their entitlements. Peter Hamilton, head of Market Engagement at Zurich UK, explained: “Many benefits are not automatic, meaning that you or your LPA (lasting power of attorney) must apply for them, which is a key barrier for people with cognitive impairment.”
He highlighted research suggesting people could be missing out on between £1,000 and £5,000 annually in unclaimed benefits. Mr Hamilton discussed why people might be losing out.
‘Limiting access’
He said: “People with dementia are disproportionately likely to miss out due to complex systems, cognitive decline, and low awareness. Lack of diagnosis also contributes, with more than a third of people with dementia in the UK not having a formal diagnosis, limiting access to support.”
One benefit he highlighted that people frequently fail to claim is Attendance Allowance. These payments assist those of state pension age who live with a health condition requiring where they need another person for their care needs.
The scheme provides either £76.70 or £114.60 per week. Successfully claiming it can unlock access to additional Government support, including extra Pension Credit, Housing Benefit or a reduction in council tax.
Mr Hamilton said: “Attendance Allowance is often underclaimed, which directly supports care/supervision needs typical in dementia. But it’s not means-tested, so many assume incorrectly they will not be able to qualify.”
He suggested that one potential improvement to the system would be the introduction of an automated process. He said that benefits could be triggered directly based on a person’s health records, removing the burden of having to submit an application.
