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Wednesday, 3 October 2023

Care homes and benefits

A permanent or temporary stay in a care home can affect your benefits. If you are receiving any benefits and your circumstances change, you need to tell the relevant government department.

You will probably have to contribute most benefits you get towards your care home fees.

Moving into a care home should not affect the mobility component of your Disability Living Allowance (DLA). It will also be disregarded when your local council are calculating how much you should contribute towards the cost of your care.

If the NHS is funding your care home fees, both the care component and the mobility component of your DLA may be affected. Please contact the office that normally pays your DLA for further information.

The table below describes how your Attendance Allowance (AA) and the care component of your DLA is affected when you move into a care home.

Situation

Effect on the care component of DLA and AA

Your local council is helping you with your care home fees.

It will be paid for the first four weeks (if you were already entitled to receive it before moving into a care home).

You local council is not helping you with your care home fees (self-funding).

It will usually continue.

You're in the first 12 weeks of your permanent stay in a care home and your property isn't counted as capital for this period. Your local council's helping with your care home fees and you'll become self funding after 13 weeks (or earlier if the property is sold).

It will be paid for the first four weeks of your stay in a care home. It will restart from the 13th week or when you start self-funding.

Your local council is helping you with your care home fees on a temporary basis while you sell your assets. And/or you have a 'deferred payments agreement' where you'll pay your contribution to your care home fees back to your local council later.

It will be paid for as long as you are entitled to it.

Income Support and Pension Credit

If you permanently move into a care home and claim Income Support or Pension Credit as a couple, you must now claim as separate individuals.

Your local council will expect you to claim any Income Support or Pension Credit that you are entitled to and will help you apply. These benefits will count as income when your contribution to your care home fees is assessed.

If your stay is temporary you can continue to claim Income Support or Pension Credit for up to 52 weeks.

Housing Benefit and Council Tax Benefit

If you're in a care home for a short break or temporary care you can continue to receive Housing Benefit and Council Tax Benefit. This is up to 52 weeks.

If you're in a care home on a trial period your Housing Benefit and Council Tax Benefit will stop if this exceeds 13 weeks.

State pension

Moving into a care home will not affect your State Pension. But it will be counted as income when your contribution to your care home fees is assessed.

Carer's Allowance

If someone cares for you and they're claiming Carer's Allowance they must tell the Carer's Allowance Unit you're moving into a care home. The Carer's Allowance Unit will work out if their benefit will continue. They can be contacted in the following ways:

In writing: Palatine House, Lancaster Road, Preston, Lancashire, PR1 1HB

Telephone: 0845 608 4321

Textphone: 0845 604 5312

email: cau.customer-services@dwp.gsi.gov.uk

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