More than 37,000 Cambridgeshire residents are struggling to cover essential living costs — and now Cambridgeshire County Council is preparing to fight back with a £660,000 data-driven crackdown on poverty.
A report going before the Communities, Social Mobility and Inclusion Committee on February 26 outlines plans to buy a countywide data system designed to identify low-income households and proactively offer support — before families spiral into crisis.
Councillors will be told that the approach marks a major shift in how poverty is tackled across Cambridgeshire.
“The proposal to procure a data-led system… will support the council’s vision of becoming a healthy, fair and sustainable Cambridgeshire,” the report states.
37,000 residents unable to make ends meet
The scale of hardship in Cambridgeshire is laid bare in the report.
“Over 37,000 of residents in Cambridgeshire live in a negative budget, with the number of people receiving Universal Credit increasing by 30% over the last four years.”
In practical terms, that means tens of thousands of households cannot meet basic costs such as rent, food, heating and utilities from their regular income.
At the same time, billions of pounds in support is going unclaimed nationally.
“Policy in Practice estimates that nationally over £24 billion of support will go unclaimed in 2025-26,” the report notes — adding it is reasonable to assume a significant amount of that money belongs to Cambridgeshire residents.
Poverty driving health inequality
The report is blunt about the wider impact.
“Poverty is the underlying driver of poor health and wellbeing.”
Cambridgeshire has seen a decline in healthy life expectancy among both men and women in recent years — sharper than in many other areas.
Despite being considered relatively affluent overall, the county now sits close to the England average for healthy life expectancy — a trend described as concerning.
The message: poverty is not isolated. It affects health, education, and long-term life chances.
From crisis response to early intervention
At present, support often depends on residents coming forward — usually when debt or hardship has already escalated.
“The current model of income maximisation support relies on residents seeking help, often at the point of crisis.”
The new system aims to flip that approach.
Instead of waiting for families to ask for help, councils would use data to identify those likely missing out on support — and reach out first.
The report says earlier identification “is one of the best ways of tackling poverty over the longer term… will help reduce health inequalities and increase health equity ranging from early years through to old age”.
In short: prevent crisis instead of reacting to it.
What Is “income maximisation”?
At the heart of the strategy is income maximisation — making sure people receive every pound they are legally entitled to.
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The Cambridgeshire Poverty Strategy Commission has recommended it as a key priority.
“Income maximisation… is the process of helping an individual or household ensure they are receiving all the money they are legally entitled to and reducing avoidable financial outgoings.”
That includes:
- Full benefits checks
- Accessing grants and local support
- Moving households onto social tariffs for utilities
- Reducing avoidable costs
The report adds: “Income maximisation is often the first step in tackling financial hardship to prevent crisis, stabilise household budgets and support residents to become more financially resilient.”
What the new data system will do
The proposed platform would securely combine local and national datasets, allowing county and district councils to work together.
“Sharing data… will enable the upper and lower tier authorities to work together to offer the most appropriate support to the most financially vulnerable households in our county.”
It would help councils:
- Identify residents eligible for Pension Credit who are not claiming
- Spot families entitled to Free School Meals but not receiving them
- Increase Free School Meals uptake, unlocking additional pupil premium funding for schools
Evidence cited in the report suggests a return of over £400 for every £1 spent.
The system, councillors are told, would “enable local authorities to focus on outward looking prevention focused work, building the financial resilience of residents and reducing their future vulnerability and the need for costly crisis interventions”.
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Supporters point to success already seen in the county.
South Cambridgeshire District Council adopted a similar system and secured nearly 1,000 additional claims in the past year.
Those claims are worth over £500,000 in the first year alone — with a projected lifetime value of nearly £4 million, evidence the model delivers real results.
How much will it cost?
The contract is expected to cost between £200,000 and £220,000 per year.
Over three years, that totals between £600,000 and £660,000.
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However, the full cost will be covered by external funding through the Department for Work and Pensions’ Crisis and Resilience Fund.
“The intention is to procure a data-led system until March 2029 to align with the upcoming 3year Crisis and Resilience Fund (CRF).”
The council says this ensures the system can be delivered without additional pressure on local taxpayers.
What about data privacy?
The report acknowledges concerns around GDPR.
“As residents’ personal data is involved, there are potential GDPR related risks.”
Safeguards include:
- County-level access to aggregated ward dashboards only
- Personal data remaining with district councils
- Formal data sharing agreements
- A full Data Protection Impact Assessment
Legal and equality duties
The proposal also links directly to statutory duties.
“A commitment to addressing the impact of poverty supports the Council’s responsibilities under the 2010 Equality Act.”
The system is expected to positively impact children, older people, disabled residents and those facing socio-economic inequalities, including care-experienced individuals.
‘Do nothing’ ruled out
The report is clear about alternatives.
“Do nothing – this is not a feasible option as the independent Poverty Commission highlighted this work as playing a significant role in tackling poverty.”
