Pensioners are being urged not to pay hundreds or even thousands of pounds for help claiming a disability benefit that they can apply for themselves for free. The warning follows reports of older people using private companies to submit Attendance Allowance applications on their behalf, with some firms operating on a no-win, no-fee basis before taking a cut of any successful award.
Case highlights hefty fees
MoneySavingExpert highlighted the case of one woman who sought help after seeing an advert on Facebook and was later awarded £110 a week. She then had to pay the company £1,033, equivalent to 18% of the benefit she would receive in her first year. Attendance Allowance is currently worth £76.70 or £114.60 a week, depending on the level of support a person needs. At the higher rate, that is worth around £5,959 over a full year.
Thomas Drury, money-saving expert at The Investors Centre, is warning pensioners and their families to check exactly what they are agreeing to before paying anyone to complete a claim. He said: “A percentage fee can sound relatively harmless when somebody explains it as 10%, 15% or 18%, particularly when you are struggling with a long benefits form and are being told you only pay if the claim succeeds.
“But you need to translate that percentage into pounds before signing anything. At today's higher Attendance Allowance rate of £114.60 a week, somebody receiving the benefit for a full year would get around £5,959. An 18% fee applied to that amount would be more than £1,070.
“Even at the lower rate of £76.70 a week, worth around £3,988 a year, the same 18% charge would be roughly £718. That is a substantial amount of money to give away for submitting an application, particularly when the claim itself does not carry an application fee.”
Free application route
MoneySavingExpert says it has seen companies charging either fixed sums or a percentage of the first year's benefit award, sometimes resulting in fees running into hundreds of pounds. It also warns that benefits advice itself is not regulated in the same way as many financial services, making it particularly important for consumers to understand who they are dealing with and exactly what they will pay.
People can apply for Attendance Allowance directly through the Government, either online or by post. GOV.UK also provides guidance notes explaining how to complete the form, and there is an Attendance Allowance helpline for people who need further assistance.
Thomas said: “The form can absolutely feel daunting, especially for somebody dealing with a long-term illness, disability or reduced independence. That is precisely why paid services can appear attractive. Someone offers to take the paperwork off your hands and only mentions the fee as a percentage of whatever you receive.
“But needing help with the form does not automatically mean you need to pay a private company. Before agreeing to a fee, check what free support is available. Age UK, for example, provides guidance on completing Attendance Allowance applications and says local branches may be able to help people work through the form.”
Key advice for claimants
The Government says Attendance Allowance is available to people who have reached State Pension age and have a physical or mental disability or health condition that means they need help or supervision. A claimant does not actually need to have a carer in order to qualify.
Drury also warns that pensioners should not assume paying someone automatically increases their chances of receiving the benefit. Age UK says one common problem with unsuccessful claims is that applicants fail to explain clearly how their condition affects their day-to-day life. It advises people to describe tasks they struggle to complete without help, accidents or falls they have experienced, and how multiple health conditions interact.
“The value isn't in finding somebody who promises they know a secret way to get a claim approved. The important thing is making sure the application accurately reflects the support you actually need. Older people can become very used to adapting around their difficulties. You might say you can dress yourself, for example, while leaving out that it takes 40 minutes, causes pain or requires you to sit down several times.
“You might say you can make food without explaining that you can no longer safely lift pans, stand for long periods or remember whether appliances have been switched off. That detail matters. But it has to be truthful and it should describe your real circumstances.”
For anyone who still chooses to use a paid service, Drury says there are several questions that should be answered before the company submits anything. He said: “Ask for the fee in pounds as well as percentages. Ask whether it is calculated using four weeks of benefit, six months or the entire first year's award. Ask when the payment becomes due and whether there are additional charges.
“You should also insist on seeing the completed claim before it is submitted. If a company has written something about your health or daily needs that you do not recognise or agree with, that should not simply be sent to the DWP under your name.
“And be particularly wary of adverts that make it sound as though paying someone is the normal route to receiving Attendance Allowance. It isn't.”
MoneySavingExpert recommends trying free sources of assistance first, including Age UK, Citizens Advice, Independent Age, Scope and Turn2us. Thomas said: “For somebody living on a fixed retirement income, £700 or £1,000 is not a trivial administrative cost. Attendance Allowance exists to help older people meet the additional costs associated with illness and disability. Before giving a sizeable part of that support to a claims company, take the time to find out whether you can get the help you need without paying for it.”
