Benefits You Can Claim in a Care Home

Topic cluster: Care Home Costs & Funding | Reading time: 7 min

Moving into a care home does not mean your parent loses all access to benefits. Several important benefits can still be claimed — and some families miss out on significant weekly income simply because they are not aware of what is available. This guide covers the main benefits available to care home residents.

Benefits That Continue in a Care Home

1. Attendance Allowance (AA)

Attendance Allowance is available to people who have reached State Pension age and have a physical or mental disability requiring additional care and supervision.

Current rates (2025/2026):

Lower rate: £76.70/week (care needed during the day or night)
Higher rate: £114.60/week (care needed during the day and night, or terminally ill)

In a care home: You can claim Attendance Allowance (at either rate) if you are paying for your own care. If the local authority is funding your care, Attendance Allowance stops 28 days after you move in permanently.

2. State Pension

Your parent continues to receive their State Pension in full in a care home. The pension is included as income in the financial assessment and typically contributes towards care fees.

If your parent is council-funded, they retain a Personal Expenses Allowance from their income (at least £31.80/week in England) regardless of the State Pension amount.

3. Pension Credit

If your parent's weekly income is below the guaranteed minimum (£238.00/week for a single person in 2026), Pension Credit tops it up. Claiming Pension Credit also provides access to other means-tested benefits.

In a care home, Pension Credit eligibility is affected by the funding arrangement:

Self-funding: Can claim Pension Credit if income is below the threshold
Council-funded: Complex rules apply — the Personal Expenses Allowance and care funding structure affect eligibility. Get individual advice.

4. Personal Independence Payment (PIP) and Disability Living Allowance (DLA)

PIP is the working-age equivalent of Attendance Allowance (for people under State Pension age). If your parent was receiving PIP before moving into care, entitlement depends on who is funding the care:

Self-funding: PIP continues
Local authority funded: The daily living component stops after 28 days; the mobility component continues

DLA applies to those who were claiming it before PIP was introduced. The same rules apply as for PIP in a care home.

5. NHS-Funded Nursing Care

If your parent is in a nursing home, they may qualify for a weekly NHS contribution of £267.68 (standard rate, England, 2026/2027) paid directly to the care home. This is not a benefit in the traditional sense — it is a direct NHS contribution — but it reduces the net cost of care for self-funders.

Benefits That Stop or Change

Benefit	What happens
Attendance Allowance	Stops after 28 days if council-funded; continues for self-funders
PIP — daily living component	Stops after 28 days if council-funded
Housing Benefit	Stops on moving into care; not available for care home accommodation
Council Tax Reduction	No longer applicable once your parent vacates their home
Winter Fuel Payment	Continues if eligible by age (£200–£300/year depending on year of birth)

Benefits That May Be Worth Claiming (If Not Already)

Many people eligible for Pension Credit are not claiming it — over 800,000 people are estimated to be missing out. This is particularly important because Pension Credit unlocks:

Housing Benefit (before moving into care, or for a partner remaining at home)
Council Tax Reduction
Help with NHS costs (dental treatment, glasses)
Cold Weather Payments

For self-funders specifically: If your parent is self-funding care and is not claiming Attendance Allowance, this should be addressed immediately. It is not means-tested, relatively straightforward to claim, and provides up to £114.60/week.

How to Claim Benefits

Attendance Allowance: Download form AA1 from gov.uk or call the Attendance Allowance helpline on 0800 731 0122
Pension Credit: Apply online at gov.uk or by calling 0800 99 1234
PIP: Apply via gov.uk or by calling 0800 121 4433

The care home's social worker or key worker should be able to point you to benefits advice — and many areas have specialist benefits advisers (through Age UK, Citizens Advice, or local carer support organisations).

Benefits Checklist for Care Home Residents

☐ Is my parent receiving Attendance Allowance? (If self-funding and over State Pension age)
☐ Has Pension Credit eligibility been checked?
☐ Is my parent receiving NHS-Funded Nursing Care if in a nursing home?
☐ Has NHS Continuing Healthcare eligibility been assessed?
☐ Is the Winter Fuel Payment being received?
☐ Are there any disability benefits (PIP/DLA) that should be transferred or claimed?

Browse care homes by type and funding options at homeformum.com