New analysis reveals that over one million state pensioners across the United Kingdom are potentially missing out on substantial tax-free payments from the Department for Work and Pensions each year. According to figures from MoneySavingExpert and Policy in Practice, approximately 1.1 million people beyond State Pension age who live with health conditions may be failing to claim up to £5,740 annually.
A Collective Shortfall of Billions
This widespread under-claiming translates to a staggering collective shortfall of around £5.2 billion every year. The benefit in question, Attendance Allowance, is described by Martin Lewis's team at MoneySavingExpert as remaining "still massively under-claimed," prompting the organisation to refresh its guidance to clearly outline eligibility criteria and the correct claiming process.
What is Attendance Allowance?
Attendance Allowance is a non-means-tested, tax-free benefit designed for individuals over State Pension age who require help with personal care or supervision due to an illness or disability. The payment is not contingent on savings or income, and claiming it does not affect any other benefits a person might receive.
There are two different weekly rates, and the amount awarded depends on the level of care an individual needs. The money is typically paid every four weeks. Crucially, the allowance does not have to be spent directly on care; recipients are free to use it for various types of support, such as paying household bills, arranging meal deliveries, covering taxi costs, or purchasing equipment to help maintain independence at home.
Real-World Impact and Eligibility
The human impact of this benefit is significant. One Age UK reader from Durham shared: "Since Age UK Durham helped me claim Attendance Allowance I don’t have to worry. All these years I could have been having help but I didn’t know." This sentiment underscores a critical information gap affecting many eligible pensioners.
To be eligible, individuals must be over State Pension age and need help with personal care or supervision because of a physical or mental disability or illness. The specific weekly rates are set from April 2025 to April 2026, and the benefit is entirely separate from a person's financial circumstances, making it accessible to a wide range of pensioners in need of support.
