Financial expert Martin Lewis has urged pensioners to check if they're eligible for Attendance Allowance, a benefit worth up to £5,959.20 annually that remains underclaimed by around 1.1 million eligible individuals. The benefit, administered by the Department for Work and Pensions (DWP), is not means-tested, meaning it is available regardless of income or savings.
What is Attendance Allowance?
Attendance Allowance is designed for people aged 66 and over who have a disability or serious health condition requiring regular assistance. It offers two payment levels: the lower rate of £76.70 per week (approximately £3,988.40 per year) for those needing help or supervision during the day or night, and the higher rate of £114.60 per week (approximately £5,959.20 per year) for those needing help or supervision both day and night, or who are terminally ill.
According to the DWP, the benefit is intended to help with care expenses, but recipients are free to spend the money as they choose.
Underclaiming and Impact
In a Money Saving Expert newsletter, Lewis stated: "For many older people who are ill or start to face mental or physical disability, life doesn't just get tougher, it gets costlier too. ... Yet it still remains massively underclaimed, with potentially a million eligible pensioners missing out." Data from Policy in Practice suggests approximately 1.1 million eligible pensioners are not claiming the support.
Lewis advises that even the lower rate is worth claiming, as it amounts to £3,777.80 per year after the recent uprating. He added: "If you think you're entitled to attendance allowance, you should push through. This is for disabled or ill state pensioner."
Eligibility and Application
To qualify, applicants must have reached state pension age (currently 66) and have a physical or mental health condition requiring assistance for at least six months. Common qualifying conditions include arthritis, vision impairments, cardiac conditions, Parkinson's disease, and respiratory problems such as asthma. Applicants must live in Great Britain and have been present for at least two of the last three years.
The application forms are complex, but support is available through organisations like Citizens Advice and Age UK. Most applicants will not need a face-to-face assessment, though the DWP may arrange one if there is uncertainty about the condition's impact. You cannot claim Attendance Allowance if you already receive Personal Independence Payment (PIP) or Disability Living Allowance (DLA).
Case Study: Significant Financial Gains
MSE reader Dawn shared her success: "Dear Martin, after watching numerous shows I have successfully claimed Attendance Allowance for both of my parents worth £10,598/yr and Pension Credit worth £1,233/yr. This opened doorways to Housing Benefit worth £9,207/yr, Council Tax reduction of £1,534/yr, a free TV licence saving £169/yr and swapping their phone to BT saving £420/yr. They also received rebates of £3,449 for Housing Benefit and £604 for Council Tax. All in all, they are better off by more than £20,000/yr."
Lewis emphasises that claiming Attendance Allowance can unlock other benefits such as Pension Credit, Housing Benefit, and Council Tax reduction, making it a crucial step for many pensioners.
