UK consumers are poised to miss out on free money totalling billions as the 31 July deadline to claim available tax credits approaches.

In total, funds worth up to £4.2 billion could go unclaimed, as millions are failing to take advantage of their pension and child tax credits, according to research conducted by Unbiased.co.uk.

“People are missing out on record quantities of money by failing to claim tax credits to which they are entitled,” said David Elms, chief executive of the website.

Findings estimate that eight per cent of families with child tax credit privileges will forego their cash entitlement, resulting in £1.85 billion going unclaimed – a huge waste given the challenging economic climate.

Furthermore, over a quarter of pensioners are likely to leave their pension credits untouched, adding some £2.4 billion to the pot of unclaimed cash.

Should the full £4.2 billion go unclaimed, it will represent a significant rise of 17 per cent from last year’s total of £3.6 billion.

With the deadline just over one week away, Britons are being urged to make sure they don’t miss out on funds that are rightfully theirs.

“The system has been set up to help those on lower incomes and quite simply if you don’t claim your credit, it expires,” Mr. Elms added. “We are urging people to get their financial planning in order and review their current situation today.”