Benefits in Care Homes

Benefits in Care Homes

When you move into a care home, with or without help from the council, most of the pension and benefit income you receive will not change and this income will be included when we assess how much you will need to contribute towards the cost of your residential and nursing care.

There are, however, some changes which are explained below:

Disability Benefits

Care component

Normally you cannot be paid the following benefits after the first 28 days in a care home:
  • Attendance allowance (AA)
  • Disability living allowance (DLA) care component
  • Personal independence payment (PIP) daily living component

This is because the care provided for you is being paid for out of public funds.

However, if you pay the fees for the care home yourself without funding from the council or if you are receiving temporary funding which will be repaid in full (most likely because you are selling your home and you have a deferred payment agreement with the council), you will continue to receive your AA, DLA care component or PIP daily living component.

Mobility component

DLA and PIP mobility components are not affected when you move into a care home and you will continue to be eligible for these benefits.

However, if you have a mobility car which you give up when you move into residential or nursing care, you may no longer have an entitlement to receive the mobility component.

Income support, income-based job seekers allowance (JSA), income-based employment support allowance (ESA)

The amount you receive will usually only change:
  • If you have capital between £6,000 and £10,000, an increase will be payable, as there will no longer be a tariff income applied because of the increased lower capital limit from £6,000 to £10,000.
  • If you have capital between £10,000 and £16,000, a reduction in the amount of tariff income will be applied and therefore an increase in benefits, due to the increased lower capital limit.

Joint Benefits

If you have claimed any benefits as a couple (with your spouse/partner) e.g. Pension Credit or Income Support, it is important that you inform the Department for Work and Pensions that you have moved into a care home on a long term basis. This is because you and your partner will now both be classed as a single person for benefits purposes.

Occupational and personal pensions

If you are in receipt of an occupational or personal pension and your spouse/civil partner remains at home, we will only include half of this income in your financial assessment, assuming that you pass the other half to your spouse/civil partner.