Government moves to ban fees for pensioners’ Attendance Allowance claims
The Government plans to stop claims management firms charging pensioners to submit Attendance Allowance applications, after a sharp rise in claims handled by such firms. Work and Pensions Secretary Pat McFadden said some companies target vulnerable older people with large fees, and that in some cases claims have been submitted without the applicant’s knowledge.
A new code of conduct will bar fees for submitting claims, with ministers prepared to change the law if firms do not comply. Applications made through claims management firms rose fivefold in the past year, from a few hundred to thousands. Attendance Allowance pays £76.70 or £114.60 a week, depending on the level of care needed, and the Government is also funding an advertising campaign about free benefits advice.
In short
- Ministers plan to bar fees for submitting Attendance Allowance claims.
- Applications through claims firms rose fivefold in a year.
- Free benefits advice is available through trusted organisations.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Banning fees could protect older people from firms that exploit vulnerability, charge large sums for help with a benefit claim, or submit applications without informed consent. Free applications and advice would help ensure more of the allowance reaches people who need support, while a legal backstop could make the protection effective.
The case against
Some pensioners may value claims firms’ help with a complex application, particularly if they lack confidence, time or access to free advice. A ban could reduce the availability of that assistance or leave some people less likely to claim; a reasonable advocate might favour stronger disclosure and consent rules, alongside accessible free advice, over prohibiting charges altogether.
Explained simply
Attendance Allowance is a tax-free benefit for people over State Pension age who have a disability or health condition and need help with personal care or supervision. It is paid at one of two weekly rates, depending on the level of help needed, and is not means-tested.
People can apply directly or get free help from organisations such as Citizens Advice. Claims management firms also submit applications, but some charge fees, which can reduce the money a claimant receives. The Department for Work and Pensions oversees the benefit, and its rules on firms’ conduct affect how pensioners can get help with claims.
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Originally published by Daily Mail as “Crackdown on ‘rogue’ firms ‘robbing’ pensioners in benefits scam following surge in claims”.