What State Benefits are Care Home Residents Entitled to Claim?
Article Synopsis
This article looks at the benefits you are allowed to claim while you are a resident at a care home – and those which you are likely to be ineligible for, or those which will be discontinued after a certain point.
This article is a four-minute read.
One of the questions we sometimes get asked at Baxendale Care Home relates to the State benefits you are allowed to claim while you are staying with us. So we have compiled this helpful guide whether you are already a resident, or you are thinking about becoming one.
Baxendale Care Home – a High-Quality Care Home in Whetstone
At Baxendale Care Home, a long-term retirement home in north London, we cater for long-and short-term stays, respite care stays, and we also have a specialist dementia care unit.
Whatever benefits you are allowed to receive, at Baxendale Care Home you can be assured of high-quality care around the clock. Our staff work in three eight-hour shifts across the day, and everyone receives personalised care in line with their medical needs.
The State Pension
If you (or your loved one) are funding their care themselves, then a State Pension will be paid as normal. This applies whether it is the Basic State Pension (a maximum of £176.45 a week in the 2025-6 financial year) or the New State Pension (£230.25 a week in 2025-6). These figures both assume enough National Insurance contributions have been paid.
However, if the relevant local authority is paying towards your fees, the pension will be counted as income when they calculate how much you should contribute.
Pension Credit
This is a means tested entitlement to ensure people who have reached State Pension age have a guaranteed level of income.
You will continue to receive it when you move into a care home, but you will be seen as a single person from this point onwards. So the amount you receive may be affected if you were previously living with a partner.
If you have moved permanently into residential care, contact the Pension Service and tell them about your change in circumstances. They will make sure you are getting this particular benefit at the correct rate.
Attendance Allowance
Attendance Allowance (AA) is a benefit for people of State Pension age with a disability or terminal illness who need someone to look after them. It is not means tested and is tax-free. However, it will normally be counted as income by your local authority in their Financial Assessment.
People paying for their own care will continue to receive AA payments as normal.
If you receive Funded Nursing Care (FNC) you can continue to claim AA, but if you receive Continuing Healthcare (CHC) you will not be eligible to claim it.
If your local authority is contributing towards your care home fees, you will only receive AA for the first 28 days. But if you move out of the care home – for instance, if it’s for respite care or you are recovering from an operation – then your payments can resume.
Personal Independence Payments
Personal Independence Payments (PIP) can be claimed by people aged between 16 and 64 and have two parts – a Mobility component and a Daily Living component.
If you are paying for your own care, you will continue to receive both the Mobility component and Daily Living component of PIP as normal.
If your local authority is helping you with funding, the Daily Living part of PIP will only be paid for the first 28 days of your care home stay.
However, if your local authority is only temporarily funding your care while you sell your home and you are going to pay them back, you can still get the Daily Living component. In this case, you should contact your local authority for more details.
The Mobility component of PIP is paid regardless of your personal circumstances.
Disability Living Allowance
DLA is split between care and mobility elements. You (or your loved one) will receive the former if you have difficulty carrying out daily tasks such as cooking meals, or need help with washing or cleaning. The latter element is payable if you have difficulty walking (or can’t walk at all).
As with PIP, these benefits will usually stop after 28 days if you are receiving NHS or local authority help with your home’s fees; if you are paying for your own fees, then you should continue to receive them.
However, the DLA allowance is gradually being replaced by PIP. If you are already on the DLA scheme, you will continue to receive the allowance, particularly if you were born before April 1948. However, you may receive notice that you are being switched from DLA to PIP, and any new claimants will automatically be part of the PIP scheme.
The Situation at Baxendale Care Home
Some of our rooms are available to people requiring financial support from their local authority. These rooms are available at a greatly reduced rate, which we negotiate with the relevant local authority, based on the care required by the applicant. Fees can also be met (partly or fully) by insurance plans and top-up fees are possible.
If you are concerned about what you are or aren’t eligible to claim, then we would be happy to clarify the situation. The full list (as of the 2025-6 financial year) of what can (and can’t) be claimed is on the Government’s official website here.
If you or your loved one is interested in becoming a resident, then you can follow this link and complete the online form. You can also email us at info@baxendalecare.org.uk or call 020 8445 1127.
FAQS:
Q: What is the difference between the Basic State Pension and the New State Pension?
A: The New State Pension applies to people reaching state pension age on or after April 6, 2016; the Basic State Pension is payable to those who have reached that age before that date. There are also differences in NI contributions and qualifying years.
Q: What is included in Baxendale Care Home’s fees?
A: Our care fees include 24-hour care, all drinks, meals, refreshments, laundry, housekeeping, provision of standard equipment and activities. There are phone sockets in all the rooms so you may be able to keep your own landline phone number (although you will be responsible for paying the bill).
Q: What about TV licences?
A: If you have a TV in your own room (and we provide them for short-stay residents) then you will need a licence to watch it (in the same way as you would if you watch anything on a mobile device, such as the BBC iPlayer service.
However, if you’re retired and over 60 (or are classed as disabled) and living in a care home, you could be eligible for an Accommodation for Residential Care (ARC) licence. This costs £7.50 per room or flat and is aimed at people who want to watch TV within their own accommodation. (A normal licence costs £174.50). Check with the staff to see if you are eligible.