Business
Millions missing out on benefits and government support, analysis suggests
Dan WhitworthReporter, Radio 4 Money Box
Andrea PatersonNew analysis suggests seven million households are missing out on £24bn of financial help and support because of unclaimed benefits and social tariffs.
The research from Policy in Practice, a social policy and data analytics company, says awareness, complexity and stigma are the main barriers stopping people claiming.
This analysis covers benefits across England, Scotland and Wales such as universal credit and pension credit, local authority help including free school meals and council tax support, as well as social tariffs from water, energy and broadband providers.
The government said it ran public campaigns to promote benefits and pointed to the free Help to Claim service.
Andrea Paterson in London persuaded her mum, Sally, to apply for attendance allowance on behalf of her dad, Ian, last December after hearing about the benefit on Radio 4’s Money Box.
Ian, who died in May, was in poor health at the time and he and Sally qualified for the higher rate of attendance allowance of £110 per week, which made a huge difference to their finances, according to Andrea.
“£110 per week is a lot of money and they weren’t getting the winter fuel payment anymore,” she said.
“So the first words that came out of Mum’s mouth were ‘well, that will make up for losing the winter fuel payment’, which [was] great.
“All pensioners worry about money, everyone in that generation worries about money. I think it eased that worry a little bit and it did allow them to keep the house [warmer].”
Unclaimed benefits increasing
In its latest report, Policy in Practice estimates that £24.1bn in benefits and social tariffs will go unclaimed in 2025-26.
It previously estimated that £23bn would go unclaimed in 2024-25, and £19bn the year before that, although this year’s calculations are more detailed than ever before.
“There are three main barriers to claiming – awareness, complexity and stigma,” said Deven Ghelani, founder and chief executive of Policy in Practice.
“With awareness people just don’t know these benefits exist or, if they do know about them, they just immediately assume they won’t qualify.
“Then you’ve got complexity, so being able to complete the form, being able to provide the evidence to be able to claim. Maybe you can do that once but actually you have to do it three, four, five , six, seven times depending on the support you’re potentially eligible for and people just run out of steam.
“Then you’ve got stigma. People are made to feel it’s not for them or they don’t trust the organisation administering that support.”
Although a lot of financial support is going unclaimed, the report does point to progress being made.
More older people are now claiming pension credit, with that number expected to continue to rise.
Some local authorities are reaching 95% of students eligible for free school meals because of better use of data.
Gateway benefits
Government figures show it is forecast to spend £316.1bn in 2025-26 on the social security system in England, Scotland and Wales, accounting for 10.6% of GDP and 23.5% of the total amount the government spends.
Responding to criticism that the benefits bill is already too large, Mr Ghelani said: “The key thing is you can’t rely on the system being too complicated to save money.
“On the one hand you’ve designed these systems to get support to people and then you’re making it hard to claim. That doesn’t make any sense.”
A government spokesperson said: “We’re making sure everyone gets the support they are entitled to by promoting benefits through public campaigns and funding the free Help to Claim service.
“We are also developing skills and opening up opportunities so more people can move into good, secure jobs, while ensuring the welfare system is there for those who need it.”
The advice if you think you might be eligible is to claim, especially for support like pension credit, known as a gateway benefit, which can lead to other financial help for those who are struggling.
Robin, from Greater Manchester, told the BBC that being able to claim pension credit was vital to his finances.
“Pension credit is essential to me to enable me to survive financially,” he said.
[But] because I’m on pension credit I get council tax exemption, I also get free dental treatment, a contribution to my spectacles and I get the warm home discount scheme as well.”
Business
India’s $5 trillion economy push: How ‘C+1’ strategy could turn country into world’s factory
New Delhi: India is preparing for a major economic transformation. The Union Budget 2026-27 lays out measures that could make the country the top choice for global manufacturing using the popular ‘China +1’ (C+1) strategy. This comes as international companies rethink supply chains after COVID-19 disruptions, rising trade tariffs and geopolitical tensions.
India has positioned itself as the backup factory for the world that is ready to absorb international demand in case of any crisis in China or Taiwan.
The government has offered tax breaks for cell phone, laptop, and semiconductor makers, making India more attractive to foreign investors. Reducing bureaucratic hurdles for global firms, the budget also strengthens the National Single Window System to simplify business procedures. The message is clear: India is ready to step in as a global manufacturing hub, ensuring supply continuity for the world.
The expressway to a $5 trillion economy
China presently dominates about 40% of global manufacturing. Its factories supply critical products worldwide, but 2026 is expected to be a turning point. Expanding influence and economic opacity have made global companies seek alternatives.
India has leveraged this moment, offering a comprehensive incentive package for foreign manufacturers. Analysts call it more than policy; it is a blueprint to become a $5 trillion economy and reclaim India’s historic position as a global industrial leader.
Why the world needs India now
The COVID-19 pandemic exposed the dangers of over-reliance on a single supplier. When China halted medical exports, nations realised the need for diversified supply chains. Major companies such as Apple and Samsung now see India as a dependable alternative.
China’s aging workforce and rising labour costs further enhance India’s appeal. With 65% of its population under 35, India offers a vast, skilled and affordable workforce for decades. The geopolitical uncertainty surrounding Taiwan, which produces 90% of advanced chips, has also created demand for a secure manufacturing backup. India is stepping in to fill that gap.
How India stands to gain from China’s challenges
India’s budget, 2026-27, slashes import duties on cell phone and laptop components, turning the country into a hub for component manufacturing, not just assembly. Electronics exports are projected to cross $120 billion by 2025.
The government has also launched a Rs 1.5 lakh crore semiconductor mission, attracting companies like Tata and Micron to establish advanced chip plants in India. In the chemical sector, stricter environmental regulations in China have shut down several plants, benefiting Indian companies such as Privi Specialty and Aarti Industries, which are now filling gaps in global supply chains.
Incentives for companies
The Production Linked Incentive (PLI) scheme promises cash rewards for output, covering over 14 sectors. This is India’s answer to Chinese subsidies. From land acquisition to electricity connections, the National Single Window System now enables businesses to clear all approvals through a single portal.
Infrastructure investment has also received a massive boost, with Rs 11.11 lakh crore allocated under PM GatiShakti. New ports and dedicated freight corridors are being built to ensure that exports from India reach the world faster and cheaper than ever before.
India’s moves points to a strategic shift in global manufacturing. By rolling out the red carpet for foreign companies and investing heavily in infrastructure, technology and policy reforms, the country is poised to become the go-to destination for global supply chains. The C+1 formula is not only a concept; it is a roadmap to turn India into the next industrial superpower and a $5 trillion economy.
At a time when global markets are witnessing high volatility due to geopolitical uncertainties, the hike in securities transaction tax (STT) on derivatives trades hit investor sentiment on Dalal Street on the Budget day. This in turn led to a sharp sell-off that pulled the sensex down by nearly 1,500 points—its biggest points loss on a Budget day—to close at 80,773 points. The sell-off also left investors poorer by Rs 9.4 lakh crore, the biggest Budget day loss in BSE’s market capitalisation.The day’s trading was marked by high volatility. The sensex rallied over 400 points as FM started her speech, fell about 1,100 points after the STT hike proposal was announced, partially recovered by mid-session to trade 600 points down on the day and then sold-off to close below the 81K mark for the first time in four months.On the NSE, Nifty too treaded a similar path to close 495 points (2%) lower at 24,825 points. Fund managers and market players feel the day’s sell-off was overdone, compounded by the absence of most institutional players since it was a Sunday. “The market’s reaction (to the hike in STT rates) was a bit overdone, although the decision itself was unexpected,” said Taher Badshah, President & Chief Investment Officer, Invesco Mutual Fund. “I think markets should settle down in 2-3 days.” Badshah said the Budget was in line with govt’s set path of the past few years, showing a conservative approach to setting targets.“The revenue and expenditure targets for FY27 are achievable. And since the rate of inflation is lower now, the nominal GDP growth rate of 10% may turn out to be on the higher side as inflation normalises during the year,” the top fund manager said. In Sunday’s market, of the 30 sensex stocks, 26 closed in the red. Among index constituents, Reliance Industries, SBI and ICICI Bank contributed the most to the day’s loss. Buying in software services majors Infosys and TCS cushioned the slide. In all, 2,444 stocks closed in the red compared to 1,699 that closed in the green, BSE data showed.STT hike aimed at curbing F&O speculation The decision to raise securities transaction tax (STT) for trading in equity derivatives means trading futures & options (F&O) will be more expensive from April 1. STT on futures trading rises from 0.02% to 0.05% now, and on options premium and exercise of options to 0.15% from 0.1% and 0.125% respectively. This could more than double statutory costs of trading F&O contracts.While the move is to curb excessive speculation by retail traders who mostly suffer losses, investors sold stocks of those companies that derive a large portion of their turnover from this segment. Stock price of Angel One crashed nearly 9%, BSE crashed 8.1%, Billionbrains Garage Ventures that runs the Groww trading platform, lost 5.1% and Nuvama Wealth Management lost 7.3%. STT hike follows a Sebi survey that showed that 91% of the retail investors lost money in the F&O market with average loss per investor surpassing Rs 1 lakh per year. Institutional and some high net worth players took home most of the profits from the segment.18% GST on brokerage for FPIs removedThe Budget proposed to do away with 18% GST charged on the brokerage that foreign portfolio investors pay in India. Among the host of changes to the GST laws that the finance minister proposed, one was abolishing clause (b) of sub-section (8) of section 13 of the Integrated Goods and Services Tax Act, 2017. This is being “omitted so as to provide that the place of supply for ‘intermediary services’ will be determined as per the default provision under section 13(2) of the IGST Act,” the Budget proposal said.
Buying property from an NRI? Worried about obtaining TAN? Not anymore. To relax the compliance burden, the Budget has proposed that resident individuals and HUFs need not have a Tax Deduction and Collection Account Number (TAN) if they are purchasing a property from a non-resident Indian (NRI). The amendment will take effect from Oct 1, 2026.Under the proposed framework, resident individuals or HUFs can report the tax deducted at source (TDS) by quoting PAN, as is done when the transactions are between two residents. Presently, if a person buys an immovable property from a resident seller, the person is not required to obtain TAN to deduct tax at source. However, where the seller of the immovable property is a non-resident, the buyer is required to obtain TAN to deduct tax at source.Ameet Patel, partner at Manohar Chowdhry & Associates, said this used to be a detailed process. “At present, if a resident were to purchase an immovable property from an NRI, there is no separate relaxation regarding compliance with TDS responsibilities. As a result, in such cases, the buyer needs to obtain a TAN, register on the portal, and then deduct TDS u/s. 195, and pay to the govt. Under section 195, as with all other regular TDS sections, a quarterly e-TDS statement is required. A buyer would need professional help for all this.”Hinesh Doshi, CA, welcomed the move. “There used to be an unnecessary compliance burden due to this. While the process to obtain TAN is simple, people used to obtain TAN for just one transaction. So, this is a good riddance.”
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