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 will still be paid

The following benefits will still 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 Allowance/Personal Independence Payment2  

1The amount payable may change. 2The mobility component only is still payable, unless self-funding.

Benefits that may not be paid

Certain benefits are no longer paid when someone is receiving long-term care. 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 where care home fees are being paid or partly paid by the local authority or the NHS.
  • Any benefits payable to help pay rent or a mortgage (for example Housing Benefit).

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.

Means-tested benefits

Your client will need to demonstrate that their income, savings and capital are below a certain level to qualify.

Non means-tested benefits

These benefits aren't dependent on your client's income, savings or capital. Your client may be eligible if they meet the qualifying criteria.

Useful sites

We've selected a range of articles and further information on benefits entitlement.

Benefits information researched and accurate 21 June 2019. Not to be relied upon by advisers or their clients.