How private firms are siphoning money from social security
Such firms offer services such as filling in claim forms and medical questionnaires, communicating with the Department for Work and Pensions and preparation for tribunals.
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Often targeted by social media advertising, people are paying up to £400 plus VAT per successful application for things like the Pension Age Disability Payment (PADP) and the Adult Disability Payment (ADP).
Companies are deducting as much as 10% from ongoing monthly payments, potentially earning up to thousands of pounds over years.
CAS offers free advice to those in need of social security, helping close to 192,000 people in 2023-24.
David Hilferty, director of impact at Citizens Advice Scotland said: "This is a pernicious practice – profiteering from people who need support most.
"It is the very worst kind of innovation and opportunism, clearly undermining the policy intent of these payments to provide vital financial support to those who need it most.
"Expert, impartial, and confidential advice should be free of charge to everyone who needs it in Scotland. "
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The Herald Scotland
11 hours ago
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Shame on the firms which are taking money away from the disabled
Yet if the prospect of future cuts to essential support isn't concerning enough, private commercial firms too are taking money away from disabled people. And this is happening right now, in plain sight. In recent months, we have identified instances of private firms offering a "no win, no fee" service to access social security payments. Commercialising a service that people may not always know is freely available. Most recently, we've seen examples of this for Adult Disability Payment (ADP) – which replaces the Personal Independence Payment (PIP) for working-age adults in Scotland. Some of the activity is happening through sophisticated, targeted social media marketing. People are being charged up to £400 plus VAT per successful application, with as much as a 10% deduction from their ongoing monthly payments. Over the course of a multi-year award, this could earn the private firm thousands of pounds – clearly a lucrative if thoroughly unethical approach. For us, this is a pernicious practice – profiteering from people who need support most. It is the very worst kind of innovation and opportunism, clearly undermining the policy intent of these payments to provide vital financial support to those who need it most. Expert, impartial, and confidential advice should be free of charge to everyone who needs it in Scotland. And that is what we in the CAB network provide. If the advice sector was the health service, we would be accident and emergency. Because while our advice and information is for everyone – somewhat naturally demand is greatest where need and crisis is most acute and urgent. Like no one else, the Citizens Advice network supports people who are experiencing most harm. And so people are presenting with ever-more challenging circumstances, usually at a point of crisis where they have nowhere left to turn. Our essential frontline service provides a lifeline to over 190,000 people in Scotland every year. We are so very often the last door open for people who are out of options and facing unimaginable difficulty – frequently acting as a backstop for failure everywhere else, from social security to energy markets. We know ours is advice that changes lives because people tell us that. During the first three months of this year alone, our advisers secured ADP Daily Living entitlements worth £6,659,046, mostly upon initial application. In simple terms, what does that mean? Well, it means securing the right outcome, first time-round for people who then get the essential support they need. As we wrote here last week, day-to-day, essential living already costs more when you have less. It shouldn't cost you anything to access that kind of expert advice. David Hilferty is Director of Impact at Citizens Advice Scotland
The Herald Scotland
11 hours ago
- The Herald Scotland
How private firms are siphoning money from social security
Such firms offer services such as filling in claim forms and medical questionnaires, communicating with the Department for Work and Pensions and preparation for tribunals. Read More: Often targeted by social media advertising, people are paying up to £400 plus VAT per successful application for things like the Pension Age Disability Payment (PADP) and the Adult Disability Payment (ADP). Companies are deducting as much as 10% from ongoing monthly payments, potentially earning up to thousands of pounds over years. CAS offers free advice to those in need of social security, helping close to 192,000 people in 2023-24. David Hilferty, director of impact at Citizens Advice Scotland said: "This is a pernicious practice – profiteering from people who need support most. "It is the very worst kind of innovation and opportunism, clearly undermining the policy intent of these payments to provide vital financial support to those who need it most. "Expert, impartial, and confidential advice should be free of charge to everyone who needs it in Scotland. "
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