Low-income households are far less likely to claim their share of class action payouts, according to new research showing a growing divide in access to compensation.
A study by litigation communications firm Thorndon Partners found a clear engagement gap. Higher-income respondents were far more likely to participate regardless of the sums involved. Households earning under £15,000 a year also lacked the documentation needed to file a claim more often than those making over £40,000. An iterative bidding experiment within the research further demonstrated that willingness to engage did not align with potential payout size, reinforcing that income level itself was the dominant factor in participation rates.
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The issue extends beyond awareness. More than a third of consumers avoid compensation offers because they assume they are scams. Suspicion arises from the proliferation of unfamiliar online platforms, unsolicited emails, and requests for sensitive personal details, which collectively erode trust in the legitimacy of claims processes. The research highlights that even when individuals are aware of a class action, the perception of risk often outweighs the perceived benefit.
Trust depends heavily on the source. People were far more likely to believe a claim from a gov.uk website than from a dedicated claims portal. When asked which messenger they trusted most, 46% named Martin Lewis, founder of Money Saving Expert, over law firms or class action representatives. The preference for established, widely recognized figures and official government channels shows the importance of credibility in overcoming consumer skepticism.
Tara Flores, co-author of the report, stated that the bigger hurdle is no longer notification but convincing people the process is legitimate. Consumers have grown wary of unsolicited emails, unfamiliar sites, and requests for personal details. The study notes that class actions are facing rising skepticism as case numbers increase. This mistrust is compounded by the sheer volume of claims now circulating, making it harder for individuals to distinguish genuine opportunities from deceptive ones.
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There are currently 60 pending class actions under the Competition Appeal Tribunal’s opt-out regime, with a combined value over £160 billion. This week, consumer activist Mark McLaren launched a new claim against major housebuilders for alleged collusion, specifically a £4.5bn action that adds to the growing caseload. The expanding scope of these cases reflects both the increasing scale of alleged corporate misconduct and the broader public interest in holding industries accountable.
The Department of Business and Trade is reviewing how well the system works for consumers. A public consultation is expected soon, as officials examine ways to improve participation in asylum seeker appeals and similar processes. The review aims to address structural barriers, including accessibility, transparency, and the communication strategies used to inform potential claimants.
