Navigating Care Fees: Understanding Attendance Allowance and NHS Funding

For some people, funding their care or the care of a loved one is a stressful ordeal. There are a multitude of benefits and funding options available for older people receiving care; however, this financial side can quickly become the most confusing part of moving into care.

One of the most common benefits used for older person care is Attendance Allowance. Many people do not realise that they are eligible for this funding assistance and are missing out on unclaimed money.

What is Attendance Allowance?

Attendance Allowance is a tax-free, non-means-tested government benefit. It is available to people over the State Pension age (currently 66) who require assistance with personal care or supervision. This must be due to a physical disability or a mental condition.

This benefit is split into two rates based on the level of care that is required. The lower rate, of £76.70 per week, is for people who need help either during the day or night. There is a higher rate, of £114.60 per week, for those who require assistance during the day and night, or if they are terminally ill.

Regular assistance with personal care involves acts such as washing, dressing, or preparing meals. Some people require care for constant supervision, to ensure that they are safe and their mobility is supported.

As it is a non-means-tested benefit, your income and savings will not be assessed. Anyone over the State Pension age could be eligible for this benefit regardless of their wealth.

How Does Attendance Allowance Work in Different Care Funding?

This benefit does work slightly differently depending on the care facility that you are in and the way that you are funding it:

Self-funded care home.
Self-funding care is when a resident pays for their own care using savings, their pension, or a Deferred Payment Agreement (DPA) with the council. If a resident is self-funding their care, they will continue to receive an Attendance Allowance in full.

Local authority-funded care home.
If the council covers all or part of a resident’s care home fees, they will stop receiving Attendance Allowance payments after 28 days of living in the home. The benefit is withheld because the local authority is already actively subsidising the resident’s care.

Short-term respite care home.
If a resident is only receiving temporary respite care, instead of moving into a home long-term, the rules are the same. For self-funded respite care, the Attendance Allowance will continue.

However, if this respite care is being funded by the local authority, the 28-day rule will apply. If the resident has had recent hospital stays, it may count towards the 28-day countdown, which will cause the allowance to pause sooner.

Claiming Attendance Allowance for End-Of-Life Care

If you have a life-limiting illness or you are nearing the end of life, you may be able to get Attendance Allowance at a higher rate and much quicker than usual. To be eligible for this, you must have a medical professional state that you have 12 months or less to live. You must also be over State Pension age.

For end-of-life care, you can receive the higher rate of £114.60 per week. You may also receive extra Pension Credit, Housing Benefit, or a Council Tax deduction.

Other Benefits for Care Home Residents

Attendance Allowance is not the only government benefit available to care home residents. Depending on the resident’s health requirements and income, they may be eligible for different benefits.

NHS Funded Nursing Care (FNC).
This benefit is a flat-rate weekly payment from the NHS directly to the care home. It is a contribution towards the cost of any registered nursing care. This is a non-means-tested benefit, and is only available to residents who have been assessed as requiring nursing care in a registered home.

NHS Continuing Healthcare (CHC).
This benefit is funded by the NHS and will cover the entire cost of the resident’s care home fees. It is provided to those with complex, advanced, or unpredictable medical needs that require registered nursing care. As the NHS is funding all costs through CHC, if a resident is already receiving Attendance Allowance, this payment will stop after 28-days.

Pension Credit.
This is a means-tested benefit that can provide you with extra money towards your living costs. It is available to people over the State Pension age with a low income and low savings. If you are single, this benefit will top up your weekly income to £238. If you have a partner, it will increase your joint weekly income to £363.25.

You will not be eligible for Attendance Allowance if you are already receiving these payments:

• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Adult Disability Payment (ADP)
• Armed Forces Independence Payment (AFIP)

Key Differences of Available Benefits

Further Advice

If you are confused regarding your eligibility for any care-related benefits, the Gov.uk website has accurate and reliable information on every benefit that is available.

Please feel free to contact our team at Mulberry if you have any questions about the benefits available within our care. This may feel overwhelming, but our team has experience in all aspects of elderly care and will be happy to provide extra support.