Benefit entitlement

Some benefits are still paid when care is required, while some are stopped. In other cases, benefits are reduced or may be suspended. Here are some general guidelines.

Benefits that can be paid

The following benefits can be paid when someone enters a care home: 

State Pensions  Statutory Maternity Pay
Incapacity Benefit  Statutory Sick Pay 
Widow's Pension  Maternity Allowance 
Widowed Parent's Allowance  Employment and Support Allowances1 
Industrial Injuries Disablement Benefit  Disability Living Allowance2/Personal Independence Payment2/Attendace Allowance3  

1The amount payable may change. 

2The mobility component only is still payable, unless self-funding.

3This is a non means-tested disability benefit for those over 65. This has no mobility component and can only be paid to self-funders.

Benefits that may not be paid

Certain benefits may no longer be paid when someone lives in a care home.

For example:

  • Carer’s allowance - if the benefit was for looking after someone else.
  • Jobseeker’s Allowance.
  • The care component of Disability Living Allowance, the daily living component of Personal Independence Payment or Attendance Allowance will no longer be payable after your client has lived in a care home for 28 days where care home fees are being paid in full or partly paid by the local authority, the NHS or other public funds.

Other considerations

Here are some issues to bear in mind:

  • Contact should be made with the benefits offices and relevant authorities within 28 days of entering a care home. Benefits will not be stopped in the first 28 days.
  • If costs are paid by the local authority or the NHS, income from benefits can be used to contribute towards the costs of care, but some money should always be left for a Personal Expenses Allowance.

Benefits information researched and accurate as of October 2022. Not to be relied upon by advisers or their clients.