North East combined authority mayoral candidates have reacted to a report which highlighted that more than £1 billion in unclaimed benefits has not been claimed in the region.

A report undertaken by Policy in Practice and the North East Child Poverty Commission (NECPC) has estimated that there is “likely more than” £1.33bn in income related benefits and social tariffs in the North East of England which remains unclaimed.

The report, which was released this month (Friday, February 16), encompasses 752,000 households in the region.

The organisation has called on combined authorities to take up the issue and ensure the financial support is received by those entitled to it.

Responding to the report, candidates for the mayoral position of the new North East Mayoral Combined Authority (NEMCA) have highlighted the issue as a priority which must be addressed.

Kim McGuinness, the Labour candidate for the NEMCA position, said: “Tackling child poverty needs a full-scale response, and of course the short-term solution is to ensure families get the benefits they’re entitled to.

“But we need to go further than this.  It’s time we invested in our foundational economy, and that means focusing job creation efforts on the day to day jobs, on high streets and local services. 

“Too much of North East poverty is found in households where a parent actually works but is trapped in low-income jobs. 

“If we work with our unions we can create more well-paid jobs at the local level and ensure these have career development options backed by skills training.

"As Mayor, I commit to measuring our success by the amount of children we lift out of poverty."

It also found that there is £501 in unclaimed support per person per year in the North East – a figure 40 per cent higher than the national average of £358.

Universal Credit was the highest unclaimed figure with an estimated £691 million not taken up over the year.

Attendance Allowance, Pension Credit, and Carers Allowance were the next highest fiscal losses – coming in at £161 million, £110 million, and £102 million.

Other fiscal losses include Housing and Child Benefit which makes up £81 million and £38 million.

Independent North of Tyne Mayor, Jamie Driscoll, said: “Keeping children in poverty not only damages individuals and families, it also leaves deep scarring on our society and economy.

 “We are the only Combined Authority in the country using our investment fund to tackle child poverty. Why? Because the good jobs of tomorrow are not going to be taken up by kids who are too hungry to learn today.

"There is much we can do with devolution, as we have already shown. But we cannot ignore the fact that we need the next government, be it Labour or Conservative, to remove the two-child benefit cap and properly fund our local councils. Anything less would be a betrayal of our region's future."

Policy in Practice said maximising income potential is “essential” to support families, as well as help reduce the impact of homelessness, debt, and other crises.

It said the North East’s local authorities and public services have seen high levels of funding reductions when compared to other parts of the country.

It added this has lead to a significant impact when it comes to the region’s health, wellbeing and local economies.

Cllr Guy Renner Thompson said he would prioritise the issue which is seeing the region lose more than £1 billion of public money.

He said: "This report highlights that almost three quarters of the North East households aren't claiming the support and benefits they're entitled to, and the North East is losing out on over £1 billion of public money.

“As Mayor this would be a priority for me. The Combined Authority will work with councils and the Citizens Advice bureau to get the message out there of what people are entitled to. This would be a general campaign and targeted mail to those we know aren't claiming.

“Even if the campaign costs £1 million, that's a huge return on the investment for the people of the North East"

Approximately £24 billion of support a year has been left unclaimed compared to the North East’s £1.3 billion.

The report outlined the total amount of unclaimed support in the North East is likely to be “considerably higher” than the £1.3 billion figure cited in its findings.

It said this is because the data excludes a number of other discretionary support schemes and disability benefits

Labour’s candidate for the TVCA mayoral position, Kris McEwan, said the figures presented by the report show the Tees Valley is suffering as a result of the Conservative government.

He said: “The Tories have broken our economy and the people of the Tees Valley are suffering as a result.”

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“As Mayor, my combined authority will absolutely work with groups like the North East Child Poverty Commission, to explore ways we can support people to claim what benefits they’re entitled to.”

“In addition, my skills and education plan will help people get back in to work, whatever stage of life they’re at, not just lifting people out of poverty, but tackling it at its very roots.”

The Northern Echo contacted the TVCA for a comment on this report.