Pensioners are being warned about companies charging fees to help them claim disability benefits, with some taking as much as half of the money people are entitled to receive.
A UK Government awareness campaign is 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.
The UK Government 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.
Campaign warns against verbal contracts
The 'Claiming your benefits is free' campaign warns that people could even find themselves agreeing to a verbal contract without realising it.
It 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."
The campaign 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.
Free help to claim Attendance Allowance
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.
Anyone considering making a claim can find more information through the official Attendance Allowance guidance on GOV.UK.
Disability benefit for pensioners in Scotland
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 UK Government campaign specifically highlights this difference to help people find the correct application route. Applications can be made directly without paying a claims management company.
Scottish pensioners can find information about eligibility and how to apply on MYGOV.SCOT.
Get help making a claim from an independent advocate
The Social Security Independent Advocacy Service is funded by the Scottish Government. It was set up to ensure disabled people can understand and exercise their rights, participate fully in decisions and help them apply for vital support from Scotland's devolved social security benefits.
Advice Direct Scotland is the provider of this service through their dedicated platform advocacy.scot.
You can contact Advice Direct Scotland with any queries by calling 0808 196 8901 or emailing support@advocacy.scot.
Social Security Scotland can also help you to apply for Pension Age Disability Payment - full details on MYGOV.SCOT.
Warning over missing National Insurance protection
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 Home Responsibilities Protection automatically. However, the UK Government said that in some cases this protection was not correctly recorded.
People who believe they may be affected are encouraged to check whether they qualify and find out about the support available to help them make a claim. Information is available through the official Home Responsibilities Protection guidance on GOV.UK.
What to do if a claims company contacts you
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 say their service is free because there is no upfront payment, even though charges could subsequently 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.
The UK Government also warns about the possibility of entering into a verbal agreement without realising it.
Anyone who needs assistance with an application can use the official GOV.UK website to find information about the benefit they want to claim and the independent support available. The website also provides contact details for people who would prefer to seek help by telephone.
The key message from the campaign is that applying directly for benefits is free and people do not need to hand over a proportion of their entitlement to a private company. The campaign can be viewed on GOV.UK.
