Could you save £885 on your bills? How to tap into unclaimed discounts 

Would you refuse £885 a year? That’s the amount more than 21 million households in the UK go unclaimed in benefits and discounts, a study found.

It amounts to a whopping £19bn that goes unclaimed each year, according to policy consultancy Policy in Practice.

From water bills to city taxes and telecoms, there are significant savings for retirees, low-income earners, or those receiving certain benefits.

Yet millions of people are missing out because they simply don’t know these deals exist. In some cases, providers are so bad at notifying customers that it seems like they don’t want them to claim them.

Confusing rules about who qualifies can also make it hard to know where to start.

Here Money Mail walks you through what exactly is up for grabs.

Water

Water companies offer social tariffs for low-income households. However, according to Policy in Practice, 5.7 million eligible households are missing out, leaving an estimated £900 million on the table.

That works out to £158 per person. This is because, rather confusingly, eligibility and the type of support provided differs between water companies.

For example, Affinity, which supplies drinking water to 3.8 million people in the Southeast, has a social tariff called ‘Lift’.

It is available to households with an income of less than £17,005, or who receive a universal or pension credit.

Annual bills are capped at £115.10, while those with a council tax reduction or support may be eligible for a higher rate discount with the clean water bill set at £76.70.

South West Water has ‘WaterCare’, which can reduce bills by 15 to 85 percent. It is designed for people with an annual household income of less than £15,340, of which your water bill should make up more than 5 per cent.

The Water Consumer Council has an overview of all rates at ccw.org.uk.

Municipal taxes

If you have a low income or apply for benefits, you may be eligible for a reduction in municipal taxes of up to 100 percent.

What you receive depends on your income, the number of dependents and where you live, as each municipality has its own scheme.

Available assistance: If you are on a low income or claiming benefits, you may be eligible for a council tax reduction of up to 100%

For example, Brighton and Hove City Council applies discounts on a sliding scale depending on income.

Anyone with less than £3,992 a year can claim an 82 percent reduction on their council tax, while those with £14,258.40 a year are eligible for a 10 percent reduction.

Apply for a municipal tax reduction (also known as municipal tax support) from your municipality.

Energy

There is no social rate in the energy sector. However, charities such as Citizens Advice and Age UK have called on the government to introduce a scheme, and it is considering recommendations for a 50 per cent energy cut for those in need.

Aid currently in effect includes the Cold Weather Payment during the winter months, which pays £25 if the average temperature in your area is recorded, or predicted, to be zero degrees Celsius or below for a period of seven consecutive days between 1 November and March 31. This is due to those with retirement credit or other benefits.

Unclaimed: More than two million households are not entitled to the Warm Home Discount, worth a total of £314 million, according to Policy in Practice

Other schemes include the Winter Fuel Payment for retirees to help with their heating bills and the Warm Home Discount for those on low incomes or retirement credit.

According to Policy in Practice, more than two million households are not entitled to the Warm Home Discount, worth a total of £314 million.

The scheme offers a one-off reduction of £150 on the winter electricity bill. It will reopen in October 2023. Find out more at gov.uk/the-warm-home-discount-scheme.

To be eligible for this, you must either receive the ‘guarantee discount’ component of the pension discount, or receive certain income-related benefits or tax credits and have high energy costs.

Meanwhile, the Winter Fuel Payment is available to those born before 26 September 1956 – they are eligible for between £250 and £600 towards their heating bill.

Broadband

About 4.3 million households receiving government benefits are eligible for special broadband and mobile telephony offers, known as social tariffs.

These offer superfast internet speeds and a price freeze for the duration of the contract, at just £12 per month, which can save households £200 per year.

Savings: About 4.3 million households receiving government benefits are eligible for special offers on broadband and mobile telephony

But research by telecoms watchdog Ofcom has found that only 5 per cent of eligible households have signed up for a discounted package.

If you or someone in your household is entitled to universal credit, pension credit or other means-tested benefits, you can switch to one of the available rates.

Known as ‘the best kept secret in broadband’, Ofcom and consumer champion Which? urging people to check with their provider to see if they qualify. Ofcom has a list of social rates and providers at ofcom.org.uk.

Upgrade your pension

Pension credit supplements your weekly income up to £201.05 if you are single, or to a joint income of £306.85 if you have a partner. However, 850,000 eligible households are not entitled to it, according to Policy in Practice.

If your income from retirement, employment, and most Social Security benefits are below these thresholds, you may qualify.

You can still claim if you have savings. But if you have more than £10,000, every £500 above £10,000 counts as £1 income per week.

If you receive a pension discount and you are older than 75, you are also entitled to a free TV licence.

Leisure & Sports

Many municipalities and venues offer discounts to low-income households, benefit recipients, pensioners and people with walking difficulties.

Derby City Council, for example, offers a 40 per cent discount on activities such as gym membership and golf for the over 65s, the disabled, the unemployed and students.

The National Trust and English Heritage have discounted membership rates for the over 60s. Many theaters and cinemas in the UK offer special rates for pensioners and the unemployed.

Odeon cinemas run special screenings for the over 60s for just £3.50 as part of the Silver Cinema program – and coffee, tea and biscuits are often included with your ticket.

A chain of 261 gyms and leisure centers called Better has a discounted membership for anyone receiving government benefits.

Sports such as football, cricket and rugby have discounted tickets for older fans, usually over 65s, and also offer free or discounted tickets for accompanying carers.

moneymail@dailymail.co.uk