Select Healthcare Group News
A Guide to Receiving Pension Credit in a Care Home
If you or your loved one are moving into residential care, you might wonder “Do you get pension credit if you’re in a care home?” The answer is yes however eligibility and payments may change depending on your circumstances. In this guide, we’ll explore what you need to know about getting pension credit in a care home including how much you may be entitled to and the steps to take to ensure you receive the right support.
What is Pension Credit?
Pension Credit is a means-tested benefit that provides a top-up income for people over the State Pension age. It’s divided into two parts:
- Guaranteed Pension Credit - this ensures a minimum weekly income.
- Savings Pension Credit - this is provided to those who have saved for retirement and have reached pension age before 6 April 2016. *
If you have a severe disability, you may be eligible for an extra £81.50 per week if you claim other benefits.
How Much Is Pension Credit?
For the current financial year, Guaranteed Pension Credit provides an income of £218.15 per week for individuals. If you are a couple, the amount is £332.95.*
If you have savings or a second pension, you could be entitled to up to £17.01 Savings Credit a week if you’re single and £19.04 a week for couples. It’s worth noting that the first £10,000 of savings does not affect your claim. You can find out more about Pension Credit payments here.
Do You Get Pension Credit If You're In a Care Home?
Do you get pension credit in a care home if you move into permanent care? Yes, you can still claim Pension Credit in permanent residential care. If you have an ongoing claim for Pension Credit, it will be reassessed. Any benefits related to your housing costs for your previous home will stop. If you have a partner, you may be assessed individually if one of you moves into a care home permanently.
If your care home placement is funded by the local authority, your eligibility for the severe disability element of Pension Credit may be affected. Local authority funding can also affect other benefits like Attendance Allowance (AA) or Personal Independence Payment (PIP) which can stop after 28 days. However, if you are paying for your own care home fees, you may still qualify for Pension Credit. This also includes the severe disability element as long as the other eligibility criteria are met.
If you are already claiming Pension Credit and you move into a care home for one night or more, you’ll need to inform your benefits office.**
Can I Get Pension Credit If I Have Savings?
If you’re moving into a care home and you have savings, you can still receive Pension Credit. The first £10,000 of your savings are disregarded when calculating eligibility. For every £500 over this amount, £1 is added to your total income for Pension Credit assessment. While there is no strict Pension Credit savings limit, the more savings you have, the more your payment will be reduced. If you’re planning on paying for your own care home fees, you may still qualify for Savings Penson Credit which may help to offset your care home costs.*
How To Apply For Pension Credit in a Care Home
The process for applying for Pension Credit in a care home is the same as applying from home. You can apply for Pension Credit in the following ways:
- Online through the government website
- By phone via the Pension Credit claim line - 0800 99 1234
- By post using forms available on the government website if telephone or online applications are difficult
When you apply for pension credit, you’ll need the following:
- Your full name and National Insurance Number
- The name and address of your care home
- Date of admission
- Your income details - this includes savings and investment information, bank details
- Details of how your placement in a care home is funded
- The name of your local authority or council
- Information about power of attorney or an appointee*
Once you start receiving Pension Credit, it’s important to keep this information up to date. If you move out of residential care, you’ll need to report this change and any other significant changes such as income changes as this could affect your entitlement.
Get Help Understanding Pension Credit in Care Homes
If you or your loved one are considering a move to a care home and need support navigating how Pension Credit in care homes work, we can help. In addition to catering for the needs of our residents in Select Healthcare homes, our helpful care team can also provide useful advice. This helps us to ensure you and your loved one get the support you’re entitled to.
For more information about our care homes or the specialist services we offer, contact us online or call 01384 217900.
(This information is correct as of 2nd October 2024)
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