A new report entitled ‘In Touching Distance’ has been published by the Money and Mental Health Policy Institute.
The research (supported by Barclays) shows that getting support from income maximisation services, which help people access unclaimed benefits, grants and discounts that they are entitled to, can be transformative for people who are struggling with financial difficulties and mental health problems.
It also shows that there is strong demand among people with mental health problems for this support, which includes online tools such as benefits calculators as well as more intensive help from advisors. Analysis of nationally representative data in the report suggests that 3.4m people in the UK with mental health and debt problems could benefit from income maximisation support (1).
However, the report also reveals systemic problems which are resulting in many people with mental health problems missing out on the income maximisation support they need. Key findings include:
- Many people with mental health problems and financial difficulty are unable to access any income maximisation support at all. In an in-depth survey of 409 people with mental health problems undertaken by Money and Mental Health (2), only a third (35%) of respondents said they had accessed income maximisation support, despite over half (52%) reporting that they regularly run out of money to cover basic costs. 72% of survey respondents who could benefit from these services said they were simply unaware they existed, highlighting the need for better referrals and signposting to this support (for example from health professionals or essential services providers).
- When people do access income maximisation support, it is mainly through online benefits calculators which are not suitable for most people struggling with mental health problems. 54% of survey respondents who received income maximisation support had done so via online benefits calculators. The research shows that these tools are helpful for some people, but can be extremely difficult to use for those with more complex needs. Money and Mental Health’s analysis suggests that online benefits calculators are likely insufficient for up to 86% of people with mental health problems, who would benefit from an advisor instead.
- Services that provide intensive support from advisors are overstretched and inconsistently available across the country, due to the way these services are funded. Debt advice services are generally only required by the Money and Pensions Service (MaPS) – the largest single funder of debt advice in England – to provide people with ‘initial contact’ income maximisation services, for example signposting clients to potential entitlements. As a result, most debt advice services deliver only the minimum support required, resulting in a ‘postcode lottery’ in provision of more intensive, advisor-led services. Many people who took part in the research reported facing long waiting lists to get help from advisors, that these services were too overstretched to offer the support they needed, or that this support simply isn’t available in their area.
Money and Mental Health is calling for an overhaul of how income maximisation services are commissioned, funded and delivered to ensure they can offer the transformative support that millions of people with financial and mental health difficulties need. Its recommendations include:
- The government should commission a full review of income maximisation provision nationwide, to better understand how this support is being funded and delivered in different places. The findings should form the basis of a coordinated strategy to boost take-up and ensure support reaches those who need it.
- The Money and Pensions Service (MaPS) should require debt advice providers to offer a minimum of ‘advice only’ income maximisation services as standard.
- Banks and essential services providers should commission income maximisation tools and services, and ensure that they refer customers to this support at multiple points of the customer journey – especially when customers are experiencing (or are at risk of) financial difficulty.
Helen Undy OBE, Chief Executive of the Money and Mental Health Policy Institute, said:
“It’s alarming that in the midst of a cost of living crisis, so many people with serious financial and mental health problems are missing out on this vital support to boost their income. The Prime Minister says that easing the cost of living is his main focus for this year, and ensuring that everyone who needs quality income maximisation support can access it should be a top priority in those efforts.
“People tell us that this support has been life saving when they have been dealing with really severe financial and mental health problems. It is unacceptable that the way these services are funded means that many people miss out because the support they need isn’t available in their areas.
“We need government and service commissioners to urgently reform this broken system so that more people at the sharp end of the cost of living crisis get the help they need to make ends meet.”
Neil Gallimore, Head of Barclays Financial Assistance said:
“We know that timely access to the right financial support can be life-changing—especially for those facing both money worries and mental health challenges. That’s why we’re proud to support this research and to work closely with the Money and Mental Health Policy Institute to keep improving our services for customers in vulnerable circumstances, ensuring they get access to the benefits and support they’re entitled to, so they can feel more confident and secure in managing their finances.”
Read more and download the report.
References
- (1) Money and Mental Health combined analysis of the Adult Psychiatric Morbidity Survey 2014 and the Money and Pensions Service Money.
- (2) This online survey was undertaken by Money and Mental Health between 10-25 April 2025.