The tax-free benefit is not means-tested
Millions of Brits may be losing out on a tax-free payment worth up to £5,959 annually, with many mistakenly believing they’re ineligible due to having savings or a reasonable pension.
Attendance Allowance, an often overlooked benefit, isn’t means-tested. This means your income, investments or savings pot don’t affect whether you qualify. And with rates increasing from April, the maximum yearly sum will rise from £5,740 to £5,959, an uplift of approximately +3.8%. The support is designed for people above State Pension age (presently 66, increasing to 67) who require assistance due to illness, disability or frailty.
Importantly, eligibility hinges on care requirements – not financial status. This means even relatively comfortable pensioners who find daily activities challenging, or require monitoring to remain safe, might be entitled to the payments.
Recent statistics reveal around 1.8 million people currently receive it, a rise of roughly +8% compared to the previous year.
Payment amounts
Attendance Allowance is distributed at two weekly rates based on the level of support required:
- £76.70 per week (lower rate)
- £114.60 per week (higher rate)
This amounts to up to £5,959 annually.
The lower rate applies if assistance is needed either during daytime or night-time hours, while the higher rate is for those requiring care around the clock – or people who are terminally ill.
What qualifies as needing assistance?
You don’t need to have a carer – just to show you would benefit from support.
This could include:
- Help washing, dressing or eating
- Supervision due to memory problems or confusion
- Risks such as falling, leaving appliances on, or wandering
- Conditions like dementia, hearing or sight loss
- Even needing someone to check on you regularly can be enough.
An unexpected bonus
Unlike numerous benefits, the payment is tax-free and won’t reduce other entitlements. In fact, it can actually boost eligibility for additional support such as pension credit, housing benefit or council tax assistance.
However, local authorities may factor it in when determining how much you should contribute towards care costs.
How to apply
You’ll need to complete a detailed form, obtainable via the Attendance Allowance helpline or by post.
Be ready – the application can be lengthy, and specialists recommend including as much medical evidence as possible, such as:
- GP or consultant letters
- Care plans
- Prescription details
Decisions generally take several weeks, and if you’re rejected you have one month to contest it through a “mandatory reconsideration”.
Why so many lose out
Despite the considerable sums available, thousands fail to apply because they presume:
- They earn too much
- They don’t have a formal diagnosis
- They don’t have a carer
But none of these automatically disqualify you. Details can be found here.
