Executive summary
Policy in Practice finds that people of pension age may be missing out on £5.2 billion
This research finds that over 1.1 million pension age households could be missing out on £5.2 billion of Attendance Allowance per year. This support is intended to help pension age households cope with the additional costs of disability.
Rising living costs, together with relatively low UK pensions compared to many similar countries, mean that many pension age households now struggle to meet their basic outgoings. This issue is particularly acute in households in which a person has a disability and needs additional support to cope with day to day living. A recent report by Scope calculated the average cost of disability to be an additional £1,122 per month.
Maximising pension age income through the take up of benefits is essential to reduce harm, debt or other crises. Additional income to assist with disability can make a significant difference to people of pension age by affording adequate nutrition, warmth and participation in society.
An award of Attendance Allowance can be worth up to £5,306 per annum. This represents a significant proportion of the average pension age income. ONS data shows that the average income for a single pensioner in 2022 was £18,148 per year. An award of Attendance Allowance would therefore represent an additional 29% of income for these pensioners. For a single pensioner in receipt of Pension Credit, which is currently £10,454 per annum, Attendance Allowance would increase their income by 51%.
The overall financial benefit to a person awarded Attendance Allowance may be significantly higher than £5,306 per year. This is because Attendance Allowance acts as a passport to additional sources of support and to an increase in other benefits that the applicant may already be receiving.
Attendance Allowance is available to people over pension age who are assessed as needing assistance with day to day living or mobility, even if no assistance is in place. Income and savings are ignored. As claims start from the date of application, potential claimants are advised to make a phone claim as soon as possible. This can be done by contacting the Attendance Allowance helpline on 0800 731 0122.
This paper sets out the methodology for calculating the level of unclaimed Attendance Allowance, and its value, in Great Britain. It follows on from previous research by Policy in Practice that estimated that means tested benefits, across all age groups, are underclaimed by up to £19 billion a year.
Estimates of the value of unclaimed Attendance Allowance across Britain
Conclusion
This research suggests that over 1.1 million people across Great Britain may be missing out on up to £5.2 billion per year in Attendance Allowance payments.
Increases in living costs have a greater impact on people living with disability. Additional needs for fuel and food, caused by underlying health problems, mean that essential costs make up a greater proportion of budgets. People of pension age with a disability are particularly affected as pension incomes are significantly lower than working age incomes.
In addition to the award of Attendance Allowance of up to £5,306 per year, Attendance Allowance can provide access to additional benefit and support and increase the award of means tested benefits. It represents a significant increase to pension age income and, for the claimant, can make the difference between being able to cope with rising costs and living with unmet need.
The benefits system can be complex to navigate and many people who are entitled to means tested and disability benefits may need support to navigate this maze. Potential claimants may require signposting to relevant benefits and supporting through the claim and assessment process. There is a role for councils, front line advice agencies and the DWP in making this happen.
- Policy in Practice works with many councils who identify eligibility to benefits and target support, primarily through Policy in Practice’s LIFT platform. We would urge councils to ensure that all pension age residents are made aware of Attendance Allowance and supported through the process
- Front line organisations, including councils, can use a reputable benefit calculator such as Policy in Practice’s Better Off Calculator to identify eligibility to benefits including Attendance Allowance
- The DWP should provide greater publicity around disability benefits and the eligibility criteria. Many potentially eligible people do not claim these benefits as they believe income and capital is taken into account