9 Key Benefits You Can Claim in a Care Home – An Expert Guide In 2025!

Figuring out the financial side of moving into a care home can feel overwhelming, but it doesn’t have to be. In this guide, you’ll quickly learn the key differences between self-funded care and local authority-supported options, and how each can affect the benefits you’re entitled to claim. We’ll also walk you through the crucial steps of updating benefit offices to avoid any penalties. By the end, you’ll have a clearer picture of how to manage these changes and feel confident in your next steps. Ready to dive in? Let’s get started.

Understanding Your Eligibility

When transitioning to life in a care home, understanding the benefits you’re entitled to is crucial. Eligibility varies based on personal circumstances, making it essential to assess your situation thoroughly.

Key Benefits to Consider

Residents of care homes may be entitled to a variety of benefits, including:

1. Basic and New State Pension: Continues based on age and National Insurance record.
2. Pension Credit: Supplementary income for pensioners.
3. Attendance Allowance: Available under certain conditions, especially for self-funders.
4. Personal Independence Payment (PIP) and Disability Living Allowance (DLA): For individuals with long-term ill health or a disability.
5. Employment and Support Allowance (ESA): For those unable to work due to illness or disability.
6. Industrial Injuries Disablement Benefit (IIDB): For those injured or sick from work-related incidents.
7. Armed Forces Independence Payment (AFIP): For veterans with injury or illness caused by service.
8. Universal Credit (UC): A means-tested benefit.
9. Bereavement Support Payment (BSP) and Statutory Sick Pay (SSP).

It’s important to note that some benefits may cease upon permanent residence in a care home.

Specific Considerations

• Attendance Allowance: If self-funded, it continues as usual. With local authority support, it’s limited to the first 28 days.
• State Pension: Remains unaffected if you’re self-funding. Your pension is considered when calculating your contribution if the local authority contributes.

State Pension in Detail

• Eligibility: Depends on your birth date and National Insurance record.
• Rates:
  • For 2023/24, the basic State Pension is £156.20 weekly.
  • From April 2024, it will increase to £169.50 weekly.

Expert Recommendations

1. Thorough Assessment: Review your entitlements based on your funding situation (self-funded vs. local authority support).
2. Prompt Reporting: Inform the benefits office immediately upon moving to a care home to avoid penalties.
3. Professional Advice: Consult a financial advisor specializing in later-life care to navigate these changes effectively.

State Pension and Pension Credit

Moving into a care home does not mean losing your State Pension. However, changes may occur if you are entitled to a Pension Credit, a means-tested benefit ensuring a guaranteed income level for those who have reached State Pension age. Your status shifts to a single person upon entering a care home, potentially affecting the amount of time you previously lived with a partner. It’s essential to inform the Pension Service about your new living situation to ensure the correct Pension Credit rate.

Attendance Allowance

Attendance Allowance, a non-means-tested benefit for those of State Pension age requiring care due to disability or terminal illness, continues regardless of income and savings. However, its treatment differs based on who funds your care:

• Self-Funded: Continues as normal.
• Local Authority Contribution: Only available for the first 28 days, but can resume if you leave the care home.

Personal Independence Payment (PIP)

PIP includes Mobility and Daily Living components for individuals aged 16 to 64.

• Self-Funded: Both components continue as usual.
• Local Authority Funded: The Daily Living component is limited to the first 28 days, but exceptions exist, especially if the funding is temporary.

Personal Expenses Allowance (PEA)

Residents in a local authority-funded care home receive a PEA or MIA (in Wales), varying by UK region. This allowance, intended for personal items, is not used towards care costs. Rates for 2023-24 are:

• England: £28.25 weekly
• Scotland: £32.65 weekly
• Wales: £39.50 weekly (as MIA)
• Northern Ireland: £27.19 weekly

Energy Bills Support Scheme Alternative Funding (EBSS)

The EBSS Alternative Funding, part of the government’s response to the cost of living crisis, offers up to £400 for care home residents in England, Scotland, and Wales. Application is necessary via the government website, and a helpline is available for assistance.

Key Actions for Care Home Residents

1. Inform Agencies: Promptly report changes to the Pension Service and relevant benefit offices.
2. Understand Your Benefits: Assess how your care funding method impacts benefits like Attendance Allowance and PIP.
3. Apply for EBSS: If eligible, apply for the Energy Bills Support Scheme for additional financial support.

Universal Credit

Universal Credit, aimed at working-age people, remains accessible upon moving into a care home. However, reaching State Pension age transitions you to Pension Credit instead.

Employment and Support Allowance (ESA)

ESA, for individuals unable to work due to illness or disability, continues in care homes but may vary in amount. Reporting your change of circumstances is vital to ensure correct benefit allocation.

Disability Living Allowance (DLA)

DLA, now replaced by Personal Independence Payment (PIP) for those aged 16 to 64, still applies to current recipients. If you’re over the State Pension age, consider an Attendance Allowance as an alternative. Transitioning from DLA to PIP may be necessary.

Industrial Injuries Disablement Benefit (IIDB)

For illnesses or disabilities resulting from workplace incidents, IIDB continues irrespective of your care home status. Its duration depends on the impact of your disability or illness.

Armed Forces Independence Payment (AFIP)

AFIP has supported service personnel and veterans injured since April 2005. Eligibility hinges on receiving a Band A-C AFCS Guaranteed Income Payment. AFIP remains claimable in care homes.

Bereavement Support Payment (BSP)

BSP, replacing the previous widow(er) ‘s benefits, is available if your spouse or civil partner passed away within the last 21 months. It’s contingent on claims within three months of their death and both parties being under the State Pension age at the time of death.

Statutory Sick Pay (SSP)

SSP, provided by employers for up to 28 weeks, continues during care homestays.

Local Authority’s Financial Assessment

Local authorities assume full benefit entitlement when assessing your contribution to care home fees. Unclaimed but eligible benefits are considered as income. Review the benefits listed in the local authority’s means test letter and claim any unclaimed benefits promptly.

Checking Eligibility for Benefits

With numerous benefits available, determining eligibility can be challenging. Use independent benefits calculators to clarify your entitlements.

Housing Benefit

Note that Housing Benefit ceases when moving into a care home permanently.

Actions for Care Home Residents

1. Inform Relevant Parties: Notify authorities about changes in living circumstances.
2. Review and Claim Benefits: Ensure you receive all entitled benefits; claim any unclaimed ones.
3. Use Resources: Utilize independent calculators for a thorough understanding of your entitlements.

Universal Credit

Universal Credit, aimed at working-age people, remains accessible upon moving into a care home. However, reaching the State Pension age transitions you to Pension Credit instead.

Employment and Support Allowance (ESA)

ESA, for individuals unable to work due to illness or disability, continues in care homes but may vary in amount. Reporting your change of circumstances is vital to ensure correct benefit allocation.

Disability Living Allowance (DLA)

DLA, now replaced by Personal Independence Payment (PIP) for those aged 16 to 64, still applies to current recipients. If you’re over the State Pension age, consider an Attendance Allowance as an alternative. Transitioning from DLA to PIP may be necessary.

Industrial Injuries Disablement Benefit (IIDB)

For illnesses or disabilities resulting from workplace incidents, IIDB continues irrespective of your care home status. Its duration depends on the impact of your disability or illness.

Armed Forces Independence Payment (AFIP)

AFIP has supported service personnel and veterans injured since April 2005. Eligibility hinges on receiving a Band A-C AFCS Guaranteed Income Payment. AFIP remains claimable in care homes.

Bereavement Support Payment (BSP)

BSP, replacing the previous widow(er) ‘s benefits, is available if your spouse or civil partner passed away within the last 21 months. It’s contingent on claims within three months of their death and both parties being under the State Pension age at the time of death.

Statutory Sick Pay (SSP)

SSP, provided by employers for up to 28 weeks, continues during care homestays.

Local Authority’s Financial Assessment

Local authorities assume full benefit entitlement when assessing your contribution to care home fees. Unclaimed but eligible benefits are considered as income. Review the benefits listed in the local authority’s means test letter and claim any unclaimed benefits promptly.

Checking Eligibility for Benefits

With numerous benefits available, determining eligibility can be challenging. Use independent benefits calculators to clarify your entitlements.

Housing Benefit

Note that Housing Benefit ceases when moving into a care home permanently.

Actions for Care Home Residents

1. Inform Relevant Parties: Notify authorities about changes in living circumstances.
2. Review and Claim Benefits: Ensure you receive all entitled benefits; claim any unclaimed ones.
3. Use Resources: Utilize independent calculators for a thorough understanding of your entitlements.

Conclusion

As we wrap up our exploration of benefits and pensions in the context of care home living, it’s important to remember that while this transition represents a significant change, it also opens the door to a range of support options tailored to your new circumstances. The key to navigating this landscape successfully lies in staying informed and proactive. Be sure to promptly communicate any changes in your living situation, claim all benefits you’re entitled to, and use resources like benefit calculators to understand your full entitlements. While the process can seem daunting, these steps will help ensure that your financial health is as well cared for as your physical and emotional well-being in your new home. Embarking on this journey with knowledge and confidence can make all the difference, empowering you to make the most of this next phase of life with peace of mind and security.

Useful Links To Learn More

• GOV.UK – Benefits for People in Care Homes – Provides detailed information on financial support and benefits available to those living in care homes, including eligibility criteria.
• Age UK – Paying for a Care Home – Offers advice on the financial help available for care home fees, including benefits like Attendance Allowance and Pension Credit.
• Citizens Advice – Help with Care Home Costs – Explains the various benefits and support options that can help with care home costs, including council funding and welfare benefits.
• Independent Age – Benefits and Entitlements – Provides a comprehensive guide on claiming benefits while living in a care home, such as Attendance Allowance and Disability Living Allowance.
• Turn2us – Benefits Calculator – A useful tool to check which benefits you may be entitled to while living in a care home and how much you could claim.

Feature image via Unsplash