Benefits you can claim in a care home

When you or a loved one move into a care home, there may be changes to what benefits you can continue to claim. This will usually depend on whether you are paying care homes fees yourself or being funded by your local authority.

What benefits can I claim in a care home?

There are a range of benefits available for residents of care homes. What you are eligible for will depend on your individual circumstances. 

For example, you might be entitled to:

• Basic State Pension and New State Pension 
• Pension Credit
• Attendance Allowance
• Personal Independence Payment (PIP)
• Employment and Support Allowance (ESA)
• Disability Living Allowance (DLA)
• Industrial Injuries Disablement Benefit (IIDB)
• Armed Forces Independence Payment (AFIP)
• Universal Credit (UC)
• Bereavement Support Payment (BSP) 
• Statutory Sick Pay (SSP)

It’s important to note that some benefits may stop if you move into a care home permanently. You need to tell the office that pays your benefits if you move into a care home as soon as possible or you may have to pay a fine.

For example, if you receive Attendance Allowance before you move into a care home you will continue to do so as normal if you are self-funding your stay. However, if your local authority/local council is helping you with the costs, you will only receive Attendance Allowance for the first 28 days.

Our video below provides more information:

State pension

If you have reached State Pension age you will still be able to claim the basic State Pension or new State Pension, depending on when you were born. The new State Pension was introduced in 2016 to replace the basic State Pension.

If you reached State Pension age before 6 April 2016 you’ll get the basic State Pension. If you reach State Pension age on or after 6 April, you’ll receive the new State Pension.

Basic State Pension	New State Pension
£176.45	£230.25

The rates above are the maximum amounts, how much you get will depend on your National Insurance record.

If you are funding your care yourself, you will continue to receive your State Pension as normal.

If your local authority is paying towards the fees, your pension will be counted as income when they calculate how much you should contribute.

Follow the link below to read more about how it works:

Do you lose your state pension when you move into a care home?

Pension Credit

Pension Credit is a means tested entitlement to ensure people who have reached State Pension age have a guaranteed level of income.

You will continue to receive Pension Credit when you move into a care home, but as you will be seen as a single person from this point, the amount may be affected if you were previously living with a partner. 

When you move permanently into residential care, contact the Pension Service and tell them about your change in circumstances. They will make sure you are getting Pension Credit at the correct rate.

Attendance Allowance

Attendance Allowance is a benefit for people of State Pension age with a disability or terminal illness who needs someone to look after them.

It is not means tested and is tax-free. It will be paid to you irrespective of your income and savings but will normally be counted as income by your local authority in their Financial Assessment.

If you pay for your own care, you will continue to receive Attendance Allowance payments as normal. If you receive Funded Nursing Care (FNC) you can continue to claim Attendance Allowance but if you receive Continuing Healthcare (CHC) you will not be able to claim Attendance Allowance.

If your local authority is contributing towards your care home fees, you will only receive Attendance Allowance for the first 28 days. If you move out of the care home, your payments can resume.

Personal Independence Payment

Personal Independence Payment can be claimed by people aged between 16 and 64 and has two parts: A Mobility component and a Daily Living component.

If you are paying for your own care, you will continue to receive both the Mobility component and Daily Living component of PIP as normal.

If your local authority is helping you with funding, the Daily Living part of PIP will only be paid for the first 28 days of your care home stay. 

However, if your local authority is only temporarily funding your care while you sell your home and you are going to pay them back, you can still get the Daily Living component. Speak to your local authority for more details.

The Mobility component of PIP is paid in all circumstances.

Personal Expenses Allowance

If you are living in a care home and your care is being funded by the local authority then you will be eligible for Personal Expenses Allowance (PEA). In Wales this is known as Minimum Income Amount (MIA).

The amount for Personal Expenses Allowance in 2025/26 will differ according to where you live in the UK.

In England: £30.65

Scotland: £34.50.

Wales: £39.50

Northern Ireland: £27.19

PEA or MIA is money that can be used for small items such as toiletries, newspapers or clothes. You won’t be asked to pay towards the cost of your care with your Personal Expenses Allowance or Minimum Income Amount.

Universal Credit

You can continue to claim Universal Credit when you move into a care home.

It is paid to people of working age. If you have reached State Pension age you can instead claim Pension Credit.

Employment and Support Allowance

Employment and Support Allowance is a benefit for people who have been assessed as unable to work due to an illness or disability. It replaced Incapacity Benefit in 2011.

You can continue to receive ESA in a care home, but the amount you get may change. If you move into a care home, you need to report your change of circumstances.

Disability Living Allowance

Disability Living Allowance has been replaced by Personal Independence Payment for people aged between 16 and 64.

People over State Pension age can apply for Attendance Allowance instead.

If you already receive DLA, you may have to apply for PIP instead.

Industrial Injuries Disablement benefit

You can continue to receive Industrial Injuries Disablement Benefit when you move to a care home. 

The benefit is paid to people who have become ill or disabled due to something that happened at work.

Depending on how your disability or illness affects you, IIDB can be paid for life or for a fixed period.

Armed Forces Independence Payment

This benefit offers support to service personnel and veterans who have been seriously injured because of their service.

To be eligible, you must have been injured on or after 6 April 2005 and given an Armed Forces Compensation Scheme (AFCS) Guaranteed Income Payment (GIP) which is Band A-C.

If you are eligible for AFIP, you can continue to claim the benefit if you move into a care home.

Bereavement Support Payment

Bereavement Support Payment has replaced Widow’s Pensions, Widowed Parents’ Allowance and Bereavement Payment.

You may be eligible for BSP if your husband, wife, or civil partner died in the last 21 months, and you claim within three months of their death.

They must have died when you were under State Pension age and were living in the UK or other country that pays bereavement benefits.

Statutory Sick Pay

Statutory Sick Pay is paid by your employer for up to 28 weeks.

The weekly rate for 2025/26 is £118.75.

If you go into a care home, Statutory Sick Pay will continue to be paid.

Your local authority assumes you receive all the income you are entitled to

If your local authority is contributing towards your care home fees, they will assume that you are receiving all the income that you are entitled to, and most benefits will be counted as income when they calculate your contribution as part of the Financial Assessment, also known as a means test.

This means that even if you are not claiming certain benefits that you are entitled to, they will still be counted as income during the means test. In the letter you receive from your local authority following the means test, they will tell you about the benefits and amounts they assume that you receive.

You may not have realised you were entitled to certain benefits, so when you receive the letter and notice there are benefits listed that you are not claiming, you should make a claim for them immediately and contact your local authority if there are any issues.

Checking which benefits you are entitled to

There are many benefits available, and it can be difficult to make sense of what you could be entitled to. 

Follow the link below to find independent benefits calculators to help you work out what financial support you could be eligible for. 

If you have been receiving Housing Benefit you will no longer be able to receive this when you move into a care home permanently

Benefits calculators