Filling in a PIP form or challenging a benefits decision can feel overwhelming, so it’s no surprise some people turn to companies that offer to do it for them. Those companies usually take a cut. The government now says that has to stop.
The DWP has confirmed that tougher rules for companies charging people to claim benefits will be brought in within weeks, through a new Code of Practice designed to protect vulnerable claimants.
What’s Changing
The key part of the plan is simple. Minister Sir Stephen Timms said the new Code of Practice will clamp down on claims management companies doing benefit claims work, and will include a £0 fee cap.
In other words, companies won’t be allowed to charge you for helping with a benefit claim. Ministers have also said new laws could follow if they’re needed.
Why the Government Is Acting
The move follows concerns about firms offering to help people fill in benefit applications or challenge decisions for a fee, even though free help is already available.
The minister put it plainly: the government is “determined to ensure that vulnerable claimants are not exploited or pressured into paying fees” for help with claiming.
When It Starts
There’s no exact date yet. The full code hasn’t been published and no start date has been confirmed, but the minister said it would arrive “in the coming weeks.”
You Never Needed to Pay in the First Place
This is the most important thing to know. Claiming benefits is free, and so is getting help with it. Free routes include:
- applying directly through the DWP, which costs nothing
- your local council
- Citizens Advice and other independent advice organisations
- GOV.UK, for checking eligibility, applying and reporting changes
- Citizens Advice Scotland and local welfare rights services if you live in Scotland
If you disagree with a decision, you can ask for a Mandatory Reconsideration, where the DWP looks at its decision again, and follow the official GOV.UK guidance on appeals. You don’t need a company for any of this.
Already Signed Up With a Claims Company?
Read your agreement carefully, especially what percentage they take and for how long. If you’re unsure, speak to Citizens Advice before you agree to pay anything else.
The DWP’s own “Don’t Pay to Claim” campaign encourages people to get free support rather than paying a company. If someone contacts you out of the blue offering to boost your benefits for a fee, treat it with caution.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.