Attendance Allowance and Care Homes: What Changes and What Stays the Same

If your loved one receives Attendance Allowance and is considering moving into a care home, you’ll need to understand how this benefit is affected. The rules differ depending on who’s paying for the care, and getting this right can make a significant difference to your family’s finances.

What Happens to Attendance Allowance When Someone Moves Into Care?

Attendance Allowance stops after 28 days (four weeks) of living permanently in a care home if the care is paid for by your local authority. This applies even if you’re contributing towards the cost through a top-up arrangement.

However, if you’re funding the care home placement entirely yourself—without any local authority contribution—your Attendance Allowance continues as normal. This is a crucial distinction that many families miss.

The 28-Day Rule Explained

The 28-day period gives families time to adjust financially and make arrangements. During these first four weeks:

• Attendance Allowance continues to be paid
• You can use this money to help with care home costs
• The DWP (Department for Work and Pensions) needs to be notified of the move

After the 28 days, if the local authority is funding any portion of the care, the benefit stops. You must inform the DWP about the care home admission—failure to do so can result in overpayments that you’ll need to repay.

When Attendance Allowance Continues

Your loved one keeps receiving Attendance Allowance if:

You’re self-funding entirely: When the family pays all care home fees privately without local authority involvement, Attendance Allowance continues indefinitely. This can help offset some of the weekly costs.

Temporary respite stays: Short-term stays in care homes (respite care) don’t affect Attendance Allowance for the first 28 days. If respite care extends beyond four weeks, the benefit stops, but it restarts when your loved one returns home.

NHS Continuing Healthcare: If the NHS funds the care home placement through NHS Continuing Healthcare, Attendance Allowance typically stops after 28 days, similar to local authority funding.

How This Affects Care Home Fees

Understanding the Attendance Allowance situation matters because it impacts your overall financial planning:

Self-funders: The continued Attendance Allowance (£72.65 or £108.55 per week depending on the rate) provides additional income to help meet care costs. At the higher rate, this represents over £5,600 annually.

Local authority funded: Once Attendance Allowance stops, your loved one’s contribution to care costs is reassessed based on their remaining income. The local authority takes this into account when calculating how much they’ll contribute towards fees.

Mixed funding: If you start as a self-funder but later apply for local authority support, Attendance Allowance will stop 28 days after the council begins contributing, even if you’re still paying top-up fees.

What You Need to Do

When your loved one moves into a care home, contact the Attendance Allowance helpline (0800 731 0122) within a few days. Provide:

• The care home’s name and address
• The move-in date
• Whether the placement is permanent or temporary
• Who’s funding the care (self-funded or local authority)

The DWP will then confirm whether the benefit continues or when it will stop. Don’t wait until the 28 days are up—early notification prevents payment issues.

Other Benefits to Consider

When Attendance Allowance stops, your loved one might qualify for other benefits depending on their circumstances:

Pension Credit: If their income drops after losing Attendance Allowance, they might become eligible for Pension Credit, which tops up weekly income.

Council Tax exemption: Care home residents don’t pay Council Tax on their previous home if it remains empty, though this doesn’t apply if someone else still lives there.

Returning Home From Care

If your loved one leaves the care home and returns home, Attendance Allowance can restart. You’ll need to make a new claim, as it doesn’t automatically resume. The assessment process determines whether they still meet the eligibility criteria based on their current care needs.

Planning Ahead

When considering a care home move, factor in the potential loss of Attendance Allowance if local authority funding will be involved. This affects:

• Your loved one’s weekly contribution to care costs
• Whether top-up fees become necessary
• Long-term financial planning for care

Many families begin as self-funders, which allows Attendance Allowance to continue. As savings decrease over time and local authority funding becomes necessary, the benefit then stops. Understanding this timeline helps you plan more effectively.

Care Homes in Mansfield and Kirkby-in-Ashfield

If you’re looking for care in the Mansfield or Nottinghamshire area, Lidder Care operates Newgate Lodge Care Home in Mansfield and Lowmoor Nursing Home in Kirkby-in-Ashfield. We provide residential, nursing, and specialist dementia care for local families, and we also offer home care services across Mansfield through Lidder Home Care.

Our team understands the financial aspects of moving into care and can discuss funding options when you visit. Whether you’re self-funding or working with Nottinghamshire County Council, we’ll explain how our fees work and what to expect.

To arrange a visit to either of our care homes or to discuss home care options in Mansfield, call 01623 720 219 or get in touch through our website.