What happens to your State Pension and benefits in a care home?

Your State Pension keeps being paid when you move into a care home, but it counts as income, so most of it goes towards fees if the council helps to pay. Attendance Allowance and the daily living part of PIP usually stop after 28 days if the council or NHS funds the placement, but carry on if you pay all your own fees. Whatever the funding, you must tell the DWP and your council about the move.

In short

• The State Pension (full new rate £241.30 a week; basic £184.90) continues in a care home and is counted in the council’s means test.
• Attendance Allowance (£76.70 or £114.60 a week) and PIP daily living usually stop within 28 days if the council funds the place. PIP mobility can continue.
• Self-funders keep Attendance Allowance or PIP, and may get the Pension Credit severe disability addition of £86.05 a week.
• Council-funded residents keep a Personal Expenses Allowance of £31.80 a week from their income in 2026/27.
• An empty home is exempt from council tax if the owner has moved into a care home.
• Where a resident pays at least half an occupational or personal pension to a spouse at home, the council must disregard 50% of it.

Benefits at a glance

Your State Pension

The State Pension is not affected by moving into a care home. It is paid into the same account as before. What changes is where it goes. If the council is helping with fees, it treats the State Pension as income in the financial assessment, along with any private pension and Pension Credit. The resident keeps the Personal Expenses Allowance of £31.80 a week, and the rest of their assessed income goes towards fees. See our Personal Expenses Allowance guide for a worked example.

Self-funders use their pension alongside savings to pay fees directly. Once capital falls to £23,250 (2026/27), the council should step in with a financial assessment. Read what happens when money runs out in a care home.

Attendance Allowance and PIP

If your parent pays their own fees

Self-funders can keep Attendance Allowance and both parts of PIP. They can also make a new claim after moving in. At £114.60 a week, the higher rate of Attendance Allowance is worth almost £6,000 a year towards fees. Many people moving into a home already meet the higher rate condition of needing help both day and night. Check eligibility with our Attendance Allowance checker and see our Attendance Allowance guide.

Funding can be less clear-cut during the 12-week property disregard or under a deferred payment agreement, when the council pays the home at first but the resident repays later. Tell the DWP exactly how the stay is funded and ask it to confirm whether Attendance Allowance or PIP is payable.

If the council or NHS funds the place

GOV.UK says most benefits usually stop within 28 days of admission if the stay is funded by the council, NHS Continuing Healthcare or NHS-funded nursing care. For Attendance Allowance and PIP daily living, that is the rule. PIP mobility and DLA mobility may continue for council-funded residents.

The 28 days can include recent hospital stays, which is why the DWP asks for details of any hospital admission in the 28 days before the move. A parent who spent two weeks in hospital first may lose payments sooner.

Worked example

Joan gets higher rate Attendance Allowance (£114.60) and the severe disability addition (£86.05) with her Pension Credit. She moves into a council-funded home. After 28 days her Attendance Allowance stops, and so does the £86.05, because it depends on it. Her assessed income falls, so her contribution to fees falls too and the council pays more. She still keeps £31.80 a week.

Pension Credit

Pension Credit tops up weekly income to £238.00 for a single person. It can be claimed by care home residents, whether self-funding or council-funded. For a council-funded resident it is counted as income in the financial assessment, so it mostly goes towards fees, but it reduces what the council pays and can unlock other help. For self-funders, the severe disability addition (£86.05) can be paid alongside Attendance Allowance or PIP daily living.

Residents who also receive savings credit keep an extra £7.30 a week (single) on top of their personal allowance. See Attendance Allowance and Pension Credit for how the two interact.

When a partner stays at home

A partner left at home is protected in several ways:

• The home is ignored in the means test while a spouse, partner or qualifying relative lives there.
• Only the resident’s own income counts. The council cannot assess couples on joint resources.
• Half-pension disregard. If the resident pays at least half of an occupational or personal pension to a spouse or civil partner who is not in the same home, the council must disregard 50% of that pension. This does not automatically apply to unmarried couples, but councils can use discretion.
• Council tax. A partner now living alone can claim the 25% single person discount.
• Benefits. Once the move is permanent, the DWP usually treats each partner as single. The partner at home may become entitled to Pension Credit or more of it in their own right, so check.

Example: Raj has a £400 a week workplace pension and pays £200 of it to his wife at home. The council disregards £200 when working out his contribution. Our guide to couples in care homes covers more scenarios.

Council tax and Housing Benefit on the old home

If the resident owned or rented a home that is now empty because they moved into a care home, it is exempt from council tax while it stays empty. Apply to the local council. If someone else still lives there, the exemption will not apply, though discounts might.

Housing Benefit can continue on a former home for up to 13 weeks if the move is a trial and the person plans to return home if it does not work out, and for up to 52 weeks for a temporary stay such as respite. It stops if the move becomes permanent, so if your parent rents, plan to give notice. Respite residents usually keep Housing Benefit during the stay, though Attendance Allowance and PIP daily living stop after 28 days if the council or NHS funds it; see respite care explained.

What to do when your parent moves in

1. Report the move to every office that pays a benefit: the Attendance Allowance helpline, the PIP or DLA line, the Pension Service and the council for Housing Benefit and council tax. Someone else can do this for them.
2. Have to hand their National Insurance number, the care home’s address, the admission date, any hospital stays in the 28 days before, and how the stay is funded.
3. If they pay their own fees, keep or claim Attendance Allowance straight away.
4. If the council funds them, check the financial assessment letter to make sure only their own income is counted and any spouse disregard is applied.
5. Get a lasting power of attorney or DWP appointee in place if they cannot manage their own money.

Failing to report a move can lead to an overpayment that the DWP will reclaim, sometimes from the estate. Use our funding checker to see where your parent stands.

Scotland, Wales and Northern Ireland

The State Pension and Attendance Allowance rules are UK-wide in Great Britain and broadly mirrored in Northern Ireland. In Scotland, Pension Age Disability Payment and Adult Disability Payment have replaced Attendance Allowance and PIP for new claims, with similar care home rules. Personal allowances differ: £37.65 a week in Scotland, £46.35 in Wales and £36.62 in Northern Ireland from April 2026.

Frequently asked questions

Do you lose your State Pension if you go into a care home?

No. The State Pension continues to be paid in a care home. If the council helps with fees, it counts the pension as income and you keep £31.80 a week as a Personal Expenses Allowance in 2026/27. Self-funders use it alongside savings to pay fees.

Does Attendance Allowance stop in a care home?

Only if the council or NHS funds the placement, in which case it usually stops after 28 days. If your parent pays all their own fees, Attendance Allowance continues, worth up to £114.60 a week, and they can also make a new claim after moving in.

Can you get PIP in a care home?

Yes, if you pay for the care home yourself. If the council funds the place, the daily living part usually stops after 28 days but the mobility part (£30.30 or £80.00 a week) may continue. Report the move to the Disability Service Centre.

Can you claim Pension Credit in a care home?

Yes. Pension Credit tops up weekly income to £238.00 for a single person and can be paid in a care home. For council-funded residents it counts towards fees. Self-funders on Attendance Allowance may also get the £86.05 severe disability addition.

Do you pay council tax on an empty house when someone goes into a care home?

No, if the home is empty because the owner or tenant has moved into a care home, it is exempt from council tax. Apply to the council. A partner who stays and now lives alone can get a 25% single person discount instead.

What happens to my husband’s pension when he goes into a care home?

It still counts as his income. But if he pays at least half of an occupational or personal pension to you while you live elsewhere, the council must disregard 50% of that pension in his assessment. Your own income and savings are not assessed.

Sources

• GOV.UK: claiming benefits if you’re going into a care home
• GOV.UK: Attendance Allowance eligibility
• GOV.UK: Pension Credit, what you’ll get
• GOV.UK: council tax on second homes and empty properties
• Care and Support Statutory Guidance, Annex C
• DHSC: social care charging 2026 to 2027

General information, not legal or financial advice. Figures for 2026/27, checked October 2026.

Reviewed by The Care Panel team on 29 October 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.