Pensioners applying for disability benefits are being urged to check free sources of help before paying private companies hundreds of pounds to submit a claim on their behalf. MoneySavingExpert (MSE.com) has issued the warning after identifying firms offering to complete Attendance Allowance applications on a 'no win, no fee' basis before charging successful claimants substantial fees.
It’s important to be aware that Attendance Allowance has now been replaced by Pension Age Disability Payment (PADP) in Scotland, which is administered by Social Security Scotland, but the warning still applies north of the border.
Case highlights the cost
MSE highlighted the case of one MoneySaver, Patricia, who sought help with her Attendance Allowance claim from a company after seeing an advert on Facebook. She had previously been turned down for other benefits and wanted support making an application.
Patricia was subsequently awarded £110 a week in Attendance Allowance, but had to pay the company £1,033 for submitting the successful claim. According to MSE, the charge was equivalent to 18 per cent of the benefit she would receive during the first year.
Free help available
The consumer website has now urged people who need assistance completing a disability benefit application to explore the free help available before considering a paid-for service. A full guide on where to find free and confidential support for completing applications can be found on MSE.com.
MSE also warned that benefits advice is not regulated, meaning anyone can offer the service and charge people for providing it.
People in Scotland who need support applying for Pension Age Disability Payment do not have to pay a private company to help them make a claim. Free independent advocacy is available through the Social Security Independent Advocacy Service, which is funded by the Scottish Government.
The service was established to help disabled people understand and exercise their rights, participate in decisions and apply for support through Scotland's devolved social security system. Advice Direct Scotland is the new provider of the service through its dedicated advocacy.scot website.
People can contact Advice Direct Scotland about independent advocacy by calling 0808 196 8901 or emailing support@advocacy.scot. Social Security Scotland can also provide support to people applying for Pension Age Disability Payment - and other benefits - with details of the help available on mygov.scot.
What to check before paying for benefits advice
Guidance on MSE.com urges anyone who nevertheless decides to use a paid company should establish exactly what service they are agreeing to and how much it will cost before proceeding. People should check the experience or training of anyone offering benefits advice and establish whether they will be allowed to review their application before it is submitted.
This is important because the claimant is responsible for the information contained in their application. MSE also recommends checking exactly how the company's fee is calculated and when payment will be required.
A company may charge a fixed amount or take a proportion of the benefits subsequently awarded, potentially resulting in a substantial bill following a successful claim. But remember, free help is available from Social Security Scotland, Advice Direct Scotland and recognised charities such as Independent Age, Age Scotland and Citizen’s Advice Scotland.
You can read the full guide on MSE.com.
