The two benefits could provide thousands of pounds to recipients (Image: Getty)
UK pensioners could see a massive boost to their income by claiming just two benefits. Millions of pensioners in Scotland, England and Wales may not be aware they could be eligible for additional tax-free benefits, which could increase their annual income by more than £18,000.
Attendance allowance, which is distributed by the Department for Work and Pensions (DWP), is not means-tested and can be worth as much as £5,500 a year. Combined with the new State Pension, which is now worth £12,547, pensioners across the UK could be in line for as much as £18,047 a year, albeit in separate payments. It comes as more than one million pensioners are believed to be eligible for Attendance Allowance, which is not affected by income or savings, is tax-free, and isn’t counted as income, yet they aren’t claiming.
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More than one million pensioners are thought to be missing out on Attendance Allowance (Image: Getty)
What is Attendance Allowance?
Attendance Allowance is a benefit for people who are State Pension age or older and need help with personal support because of a physical disability, mental disability or health condition. It is designed to help with the extra costs of care, but claimants do not need to have someone already caring for them to qualify.
The benefit is paid at two weekly rates, depending on the amount of help needed, not on any current help the person does or does not receive. It’s usually paid every four weeks.
The lower rate is £76.70 per week, and people may qualify for it if they need frequent help or supervision during the day or at night.
The higher rate is £114.60 per week, and people may qualify for it if they need help or supervision throughout both day and night, or a medical professional has said they’re nearing the end of their life.
This means those entitled to the higher rate will receive around £458.40 per month, or £5,500 per year.
A list of 56 health conditions that could qualify a person for Attendance Allowance can be found here.
Attendance Allowance helps those with a physical disability, mental disability or health condition (Image: Getty)
What is the State Pension?
The State Pension is another benefit distributed by the DWP that people can claim when they reach State Pension age.
Not everyone gets the same amount. How much you get depends on your National Insurance (NI) record and the year you were born.
For many people, the State Pension is only part of their retirement income. For example, they may also have money from a workplace pension, other pension and/or earnings.
There are two types of State Pension available: the Basic State Pension and the New State Pension.
The number of qualifying years on their NI record is used to determine how much State Pension a person will receive. To receive any rate of State Pension, people must have at least 10 qualifying years on their NI record. Usually, to get the full rate, a person should have around 35 years, though the number varies.
People accumulate NI years through active employment or by receiving NI credits. NI credits are granted during periods of unemployment, illness, or while fulfilling parental or caregiving responsibilities.
The full New State Pension
The weekly flat rate for the full New State Pension is currently £241.30, which equates to an annual rate of around £12,547.
The New State Pension is available to:
- Men born on or after April 6, 1951
- Women born on or after April 6, 1953.
The full Basic State Pension
The weekly flat rate for the full basic state pension is £184.80, which equates to an annual rate of around £9,614.
The full Basic State Pension is available to:
- Men born before April 6, 1951
- Women born before April 6, 1953.
Pensioners who qualify for the basic state pension can also qualify for an “additional” state pension, also known as the State Earnings-Related Pension Scheme (SERPS), which may provide them with some extra financial support.
It’s been claimed that pensioners who receive SERPS can actually be better off than those on the new state pension. An analysis by Money Mail in 2024 found that older retirees aged 80s and 90s can receive up to £20,176 annually, which is much higher than the new state pension rate.
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More support is also available to boost state pension payments. Pension Credit currently supports 1.4 million people in the UK.
It tops up weekly income to a guaranteed minimum level of £227.10 a week for single pensioners or £346.60 for couples. It is worth on average £4,300 this year.
However, the Department for Work and Pensions (DWP) believes that more than 700,000 people are eligible for Pension Credit, but are not claiming the income-related benefit.
If you are a single person on the New State Pension with a total weekly income below £238.00, or part of a couple with a combined weekly income of less than £363.25, you may be eligible for Pension Credit.
An award of just £1 per week is enough to unlock access to other financial support, including Council Tax discounts and help with heating bills this winter through the Warm Home Discount Scheme.