DWP warning on claims management company fees for disability benefits, Digi Mart USA News (United Kingdom): Pensioners are being warned about companies charging fees to help them claim disability benefits, with some taking as much as half of the first payment people are entitled to receive. The first payment often includes backdated money and can be substantially higher than the benefit award.
The Department for Work and Pensions (DWP) has launched an awareness campaign encouraging older people to apply for benefits directly rather than paying claims management companies that offer to handle applications on their behalf. The warning is aimed particularly at people who may qualify for Attendance Allowance in England and Wales or Pension Age Disability Payment in Scotland.
DWP said some companies approach people unexpectedly and offer to help them claim benefits without any upfront payment, but the service can come with hidden fees. In some cases, the charges can amount to as much as 50 per cent of the money someone is owed.
The “Claiming your benefits is free” campaign warns that people could even find themselves agreeing to a verbal contract without realising it.
The campaign states: “Don’t pay to claim. You don’t need to use these companies because it’s always free to claim your benefits and entitlements directly from the government.” It also warns that some companies could make fraudulent claims on behalf of customers, making it important to understand exactly what someone is agreeing to before accepting assistance.
Attendance Allowance provides financial support towards extra costs for people who have reached State Pension age and have a disability or health condition severe enough that they need someone to help look after them. People who think they may qualify do not need to pay a company to submit an application.
The UK Government’s campaign website provides information about eligibility, how to apply and where to find independent support. It also includes a new step-by-step video showing people how to complete an Attendance Allowance application online.
Further details are available in the official Attendance Allowance guidance on GOV.UK.
People living in Scotland should apply for Pension Age Disability Payment instead of Attendance Allowance. The benefit is administered by Social Security Scotland and is designed to help older people with the additional costs associated with a disability or health condition.
The campaign specifically highlights this difference to help people find the correct application route.
Free help is available in Scotland. The Social Security Independent Advocacy Service, funded by the Scottish Government, helps disabled people understand and exercise their rights and apply for devolved social security benefits.
Advice Direct Scotland provides the service through advocacy.scot and can be contacted by calling 0808 196 8901 or emailing support@advocacy.scot. Scottish pensioners can find information about eligibility and how to apply on MYGOV.SCOT.
The campaign also highlights Home Responsibilities Protection (HRP), which could be important for people who previously claimed Child Benefit. People who received Child Benefit, formerly Family Allowance, between 1978 and 2010 should generally have received HRP automatically.
However, the UK Government said that in some cases this protection was not correctly recorded. Those who believe they may be affected are encouraged to check whether they qualify, with information available through the official HRP guidance on GOV.UK.
The campaign urges people to be cautious if they receive an unexpected approach from a company offering to help them claim benefits or other entitlements. Some firms may describe their service as free because there is no upfront payment, even though charges could later be deducted from money awarded.
People should make sure they understand the terms of any offer, including whether fees will be charged and how much they could eventually have to pay.
Anyone who needs assistance with an application can use the official GOV.UK website to find information about the benefit they want to claim, the independent support available and contact details for those who prefer to seek help by telephone.
