The Department for Work and Pensions (DWP) has issued a warning that households with a common health condition—dementia—could be forfeiting up to £5,000 annually in unclaimed benefits. Life insurance provider Zurich has highlighted that many claimants misunderstand the rules, risking missing out on £1,000 or more.
Understanding the Issue
Peter Hamilton, head of Market Engagement at Zurich UK, explained: "Many benefits are not automatic, meaning that you or your LPA (lasting power of attorney) must apply for them, which is a key barrier for people with cognitive impairment." He referenced research suggesting individuals could be forfeiting between £1,000 and £5,000 annually in unclaimed benefits to the DWP. He added: "People with dementia are disproportionately likely to miss out due to complex systems, cognitive decline, and low awareness. Lack of diagnosis also contributes, with more than a third of people with dementia in the UK not having a formal diagnosis, limiting access to support."
Attendance Allowance: A Key Benefit
Mr Hamilton noted that Attendance Allowance is often underclaimed. This benefit directly supports care and supervision needs typical in dementia. It is not means-tested, so many incorrectly assume they will not qualify. For 2026/27, the rates are £114.60 per week at the higher level and £76.70 per week at the lower level. You will receive the higher rate if you need help or supervision during the day and at night, or if you are terminally ill. The lower rate applies if you need frequent help or constant supervision during the day, or supervision at night.
Carers UK Advice
Carers UK advises: "Attendance Allowance is extra money if you have a long-term physical or mental condition or disability. It doesn’t matter what your condition is – what matters is how it affects you. If you have reached State Pension age and need help with personal care, or need support to check you are ok, you may be eligible. Attendance Allowance is not means-tested, so it doesn’t matter what your income or savings are. You can get Attendance Allowance even if you are working or studying. If you are awarded Attendance Allowance, you can spend it on whatever you want that makes life easier. You don’t have to spend it on paying for care. However, your local council or trust can take Attendance Allowance into account when working out how much you need to pay for care services."
This warning comes alongside a confirmed free bus pass rule change in England from August 1, which may also affect older and disabled residents.
