People from low-income households are the least likely to access pay outs from collective actions

As the prescribed charity to receive undistributed damages from opt-out collective actions, our job is to make sure unclaimed damages are put to good use. We’re committed to supporting the distribution of damages, but where this money can’t reach the people it’s owed to, we redistribute it making grants to charities helping low-income households access the rights and redress to which they are entitled.

The new Thorndon Partners’ Beyond Dispute report shows that the people least likely to claim what they’re owed, are often those who needed it most. Lower-income households are more likely to have been impacted, less able to prove it, and are less likely to come forward even when the evidence is there.

Our Access All Areas report found that the same households are the ones already turning to free advice services for help with debt, housing and consumer issues, often because they have nowhere else to go. That report found free consumer advice delivers £10.40 in financial benefit for every £1 invested.

Contrary to popular belief, the report shows that most people would still pursue the damages they were entitled to, even if the amounts were relatively small. The report shows that 80% of people would actively pursue a claim of between £5 and £100.

Even so, lower income households, who are more in need, are significantly less likely to engage with the process. These households are the least likely to be able to produce the documents required to claim compensation raising important questions for both distribution and how unclaimed money is used to ensure these households see the benefit from these claims in other ways.

The report also explores public preferences on what happens to any undistributed funds. The preferred choice is that unclaimed funds are given to an organisation that distributes it to charity and are spent on community life in the areas affected by the original claim issue, as well as improving access to justice.

We are the prescribed charity for undistributed damages from opt-out collective actions. As a grant making charity, we redistribute those funds to charities that support those from low-income households and marginalised communities enforce their rights.

We recently announced £3.9 million grants made using £3.7 million in unclaimed settlement funds from a class action. These grants will support people who need it most to navigate processes, gather and organise paperwork and evidence, and pursue the redress they’re entitled to.