Benefits and care
homes
Key information
When you or a member of you family go
into a care home, the welfare benefits you get may change. What
will happen to your benefits depends on the type of benefit you get
and whether you are going into or out of a care
home.
Living in a care home can also affect
the benefits your partner or carer gets and any benefits you get
for your children.
Applies to: England, Scotland, Wales and
Northern Ireland
Please note: This is a complicated area
and we recommend that you seek advice from an expert benefits
adviser about your particular circumstances. You can use our
Find an Adviser tool to find a local
adviser.
Index
You can read through this information sheet, or go directly to
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Benefits when living in a care
home
Some benefits stop being paid once you, your
partner or your child has been living in a care home for a set
period of time. Others are paid in full or the amount reduced for
your partner or children.
You should tell whoever pays the benefit that
you have moved into a care home (e.g. Jobcentre Plus, the Pension
Service, Disability Benefit Unit, HM Revenue and Customs (HMRC) or
the local authority) that you have moved to live in a care home.
None of your welfare benefits will stop or go down in the first 28
days of living in a care home. You should tell the people paying
your benefit that you have moved into a care home before you
have been in it for 28 days. They can then make any changes
that need to be made so that you are not paid too much or too
little.
If you own your home, its value could affect
the amount of means-tested benefits (see below) you are able to
get. In some cases this means you do not get any means-tested
benefits. The rules are complicated and there are several ways that
the value of a home can be ignored for a period of time. If
you are in this position, it is important to get advice. Use our
Find an Adviser tool to find a local
adviser.
It is important to remember that although the
benefit rules state how much benefit you will get when living in a
care home, you may have to use some of the money you get from
benefits to pay your care home fees. Unless you are funding
yourself, the local authority will add your benefit income to your
other income when working out how much you should pay towards the
care home fees. You should always be left with income of at least
the amount of the personal expenses allowance, this is £23.25 per
week in England, £24.00 in Wales and £23.50 per week if
you live in Scotland or Northern Ireland.
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Benefits that stop being paid if you move in a care
home
If your care homes fees are paid in full or
part by the local authority, National Health Service (NHS) or other
public funds, payment of Disability Living
Allowance (DLA) care component and Attendance Allowance will stop after you
have been in a care home for 28 days.
If your DLA and Attendance Allowance payments
stop, they will be paid again when you come out of the care home
even if this is only for a short period of time, for example a
weekend.
If you come out of the care home but then
return within 28 days, your benefit will stop again as soon as you
return to the care home. If you were living in hospital
before moving into the care home and payment of DLA care component
or Attendance Allowance had stopped, you will not be paid from the
first day in the care home.
The mobility component of DLA will be paid if
you live in a care home.
If you pay all of your care home fees
yourself, you will still get DLA and Attendance Allowance. If
the local authority is temporarily paying your care home fees for
you while you sell a property and you are going to repay them once
the property is sold, you will still get DLA or Attendance
Allowance.
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Benefits that will be paid if you are permanently
living in a care home
If you get the following benefits, the amount
you get for yourself will not change if you live in a care
home. If you get any extra money in the benefit for another
person, for example for a child or your partner, it is important
for you to get advice about your situation. You can use our
Find an Adviser tool to find a local
adviser. It might be better for your partner to claim other
benefits for themselves.
If you get contribution-based Jobseeker’s Allowance, it will
stop when you are sick and not able to look for work for more than
two weeks. You should get advice to see if you can get another
benefit instead, for example, Employment and
Support Allowance.
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Carer’s Allowance
If you get Carer’s
Allowance for looking after another person, your benefit will
stop when you move to live in a care home.
If someone gets Carer’s Allowance for looking
after you, for example your partner, their benefit will stop when
you move to live in a care home as they will not longer be
providing care for you.
You or your carer should tell the Carer’s
Allowance Unit that you have moved into a care home. You
should also tell the relevant agency if you are getting other
benefits, such as Income Support,
Pension Credit or Housing Benefit (England, Scotland, Wales)
Housing Benefit (Northern Ireland) – e.g.
Jobcentre Plus (link opens in a new window), the Pension Service
and local authority offices. Carer’s Allowance will stop, but
premiums paid as part of other benefits may continue for up to
eight weeks.
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Means-tested benefits when you live in a care
home
If any of the benefits you get is paid because
you have low income and savings, it may go down after 28 days or
stop when you move into the care home permanently. If you get money
for a partner or child, this amount will stop as soon as you move
permanently to live in a care home. You should tell the agency that
pays the benefit, for example, Jobcentre Plus, the Pension Service,
Disability Benefit Unit, HM Revenue and Customs (HMRC), or the
local authority that you have moved to live in a care home so that
they can make any changes to your benefit.
The following benefits are paid for your
living costs if you have low income and savings:
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Benefits to help pay your rent, Council Tax or
mortgage/home loan
When you move to live permanently in a care
home, any benefits you get to help pay your rent, lease, mortgage,
or other home loan and Council Tax on your former home will stop.
If you move temporarily to a care home but are going to return
home, for example you have respite care or are trying out a care
home, these benefits can carry on being paid for up to 52 weeks.
You will need to tell the people paying the benefit that you are
moving into a care home, for example Jobcentre Plus, the Pension
Service or your local authority. You should tell them as soon as
you know you are moving so they can make sure that you are not paid
too much.
The following benefits are paid for your
home:
- Housing Benefit (England, Scotland,
Wales) Housing Benefit (Northern
Ireland) is paid by the local authority to help you pay
rent on your home. Benefit will stop when you move to live in a
care home permanently or if you do not plan to go back within 52
weeks.
- Council Tax Benefit is paid to help
you pay your council tax bill. Benefit will stop when you
move to live in a care home permanently, or if you do not plan to
go back home within 52 weeks. If no one else is living in the
property, tell your local authority's Council Tax department as you
may not have to pay it.
- Support with Mortgage Interest or
housing costs. This is paid with Pension
Credit, income-based Employment and
Support Allowance, Income Support and
income-based Jobseeker's Allowance if you
have a mortgage, home loan, or pay certain other housing costs, for
example ground rent. This part of your benefit will stop when you
move to live in a care home permanently, or if you do not plan
to return within 52 weeks.
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Benefits and going to live in a care home
Benefits for your children
If you move into a care home permanently you
can get Child Benefit even if your child
lives elsewhere as long as you pay towards their maintenance and no
one else claims Child Benefit for them. It may be better for
the person who has your child living with them to claim Child
Benefit. If this applies to you get advice. You can use our
Find an Adviser tool to find a local
one.
If you are living permanently in a care home,
you will not be able to get Child Tax
Credit for your children unless they live with you in the care
home. The person who is looking after your child should claim
Child Tax Credit for them.
If you are staying in a care home temporarily,
you can get Child Tax Credit for a child who normally lives with
you when you are at home. It may be better for someone else to
claim Child Tax Credit for your child when you are in a care
home. Get advice if this applies to you. You can use our Find
an Adviser tool to find a local one.
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Your partner’s or carer’s benefit
Your partner should tell whoever pays them
benefits that you have moved to live in a care home (for example
Jobcentre Plus, the Pension Service, Disability Benefit Unit, HM
Revenue and Customs (HMRC) or the local authority) so that
they can decide what changes needs to be made to their
benefits. You, your partner or carer must also tell the
people paying benefits if there is a change in your circumstances
(or theirs) – e.g. starting work, claiming another benefit etc,
that could affect the amount of benefit
received.
For the purposes of benefits claims, you and
your partner will no longer be treated as a couple if you are
living in the care home permanently. Your partner must apply for
benefits as a single person. If your partner gets a benefit
in their own right, for example State
Retirement Pension or contributory Employment and Support Allowance, they will get
the benefit but any amount paid to them for you as their partner
will stop.
Your partner or carer will stop getting
Carer’s Allowance as soon as you move to
live in a care home permanently. If your stay in the care
home is temporary, Carer’s Allowance will stop if your Disability Living Allowance or Attendance Allowance no longer gets
paid after 28 days. Carer’s Allowance will also stop if
your carer has a break from caring for you for more than 12 weeks
in the previous 26 weeks.
The other benefits that your partner will
claim as a single person will depend on their age, whether they are
caring for children, looking for work, sick, disabled or caring for
a disabled person.
If you were claiming benefit for your partner,
they will have to claim Housing Benefit
(England, Scotland, Wales) Housing
Benefit (Northern Ireland), Council Tax
Benefit and/or help with a mortgage or other loan as your
benefit will stop. They should claim as soon as you move
permanently into a care home.
If you are living in a care home temporarily,
for example in respite care, any benefits your partner gets that
include an amount for you will only change if you are likely to be
living apart for more than 52 weeks.
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Benefits for your child when they live in a care
home
If your child usually lives with you, but
moves to live in a care home or residential school, any Child Benefit, Child Tax
Credit and Disability Living
Allowance you get for them could stop or be reduced. The
rules are very complicated, so get advice if this applies to
you.You should tell the agency that pays your benefit if your child
moves to live in a care home or school so that they can make any
changes to your benefit to avoid paying you too much.
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Benefits and going to live in a care home
Claiming benefits when you move to live in a care home
If you are not getting any benefits when you
move to a care home, for example because you were working before
you became ill, you might be able to get benefit when you are
living in a care home.
If you were working when you became ill, you
might be getting Statutory Sick Pay
(SSP). This will be paid for the first 28 weeks that you are
not able to work. You may also get Working
Tax Credit for the first 28 weeks if your income and savings
are low.
If you not entitled to SSP and are not able to
work due to ill health and you are aged under State Retirement Pension age, you could claim
Employment and Support Allowance. If
you are a woman who is aged over State Pension age or a man who has
reached the State Pension age for a woman who has
the same date of birth as you, you could claim Pension Credit. Please note that on 6 April
2010 State Pension age for women started to increase from 60
according to a schedule which would bring it in line with men's
State Pension age by 2018. For more information see our guide to the State Pension age changes. If
your income or savings are low enough, these benefits can help with
payments towards a mortgage or other home loan if you are only
temporarily living in a care home.
If you rent you home, you may get Housing Benefit (England, Scotland, Wales)
Housing Benefit (Northern
Ireland) if you are temporarily living in a care
home. You may also get Council Tax
Benefit if you are temporarily living in a care home.
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Disability Living Allowance and Attendance Allowance
If you are not getting Disability Living
Allowance or Attendance Allowance,
you can make a claim for them while living in a care home. If your
care home fees are paid by the local authority, National Health
Service (NHS) or out of other public funds, you will not be paid
the care component of Disability Living Allowance or Attendance
Allowance until you move out of the care home. It will be
paid when you come out of the care home or spend time living at
home, for example weekends or holidays. You should tell the
Disability Benefit Unit (link opens in a new window) when you
leave and return to the care home.
If you get the mobility component of
Disability Living Allowance, it will be paid when you are living in
a care home.
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Benefits and going to live in a care home
Frequently asked questions
Will I still get my State Retirement Pension when I start
living in a residential home?
You will still get your State Retirement
Pension if you move to live in a care home. However, if
your care home fees are paid in full or part by the local
authority, NHS or out of other public funds, you may have to use
your State Retirement Pension to pay a contribution to the cost of
care. You will be left with at least the amount of the
‘personal expenses allowance’.
This is £23.25 per week in England, £24.00 in Wales
and £23.50 per week if you live in Scotland or Northern
Ireland.
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This information has been produced by Citizens Advice.
Last updated: 26 April 2012