Politics · United Kingdom · 1 hr ago
Ministers plan to stop firms charging pensioners for benefit claims
Ministers plan to stop firms charging pensioners to submit benefit claims under a new code of conduct.
The move follows a fivefold rise in Attendance Allowance claims made through firms over the past year.
Attendance Allowance is paid to pensioners who need personal care because of illness or disability.
Some firms charge upfront fees or ongoing payments, which can exceed 20 per cent of a claim, and the work and pensions secretary says some people’s details have been submitted without their knowledge.
The plans aim to protect vulnerable pensioners from high fees and possible fraud while making clear that free, independent advice is available.
Ministers may change the law to ban fees if firms do not follow the code, and they are funding an advertising campaign about free benefits advice.
Ministers plan to stop firms charging pensioners to submit claims for Attendance Allowance.
The plan follows a fivefold rise in applications made through claims management firms over the past 12 months.
Work and Pensions Secretary Pat McFadden said some firms charge up to £1,300 a year and may target vulnerable pensioners.
A proposed code of conduct would bar firms from charging fees to submit claims on behalf of others.
Ministers may change the law if firms do not comply, and are funding an advertising campaign about free benefits advice.
- Who
- Work and Pensions Secretary Pat McFadden and ministers are planning the measures. Claims management firms would be affected.
- What
- A proposed code would stop firms charging fees to submit benefit claims on behalf of pensioners.
- When
- The plans were reported on 25 October 2026. The number of applications via claims management firms rose fivefold in the past 12 months.
- Where
- The United Kingdom.
- Why
- Ministers are concerned that firms are targeting vulnerable pensioners and charging significant fees for support available free.
This story does not have two clearly opposing sides.
Applications for Attendance Allowance made via claims management firms increased fivefold, from a few hundred to thousands.
The Daily Mail reported that ministers planned a code of conduct to bar firms from charging fees to submit claims.
- Increase in applications
- Fivefold over the past 12 months
- Potential annual charge
- Up to £1,300
- Attendance Allowance rate
- £76.70 or £114.60 per week
- Proposed code
- Firms would be barred from charging fees to submit claims on behalf of others
- Fallback measure
- Ministers may change the law if firms fail to comply
What people are saying
In the most serious cases, this amounts to fraud
Our actions will hold these companies to account and make sure people know that free, independent support is already available through trusted organisations
The welfare state exists to support those in need, including vulnerable pensioners. It's not there for private companies to profit from.