Attendance Allowance for dementia
Attendance Allowance is one of the most valuable and under-claimed benefits for people with dementia. It is a non-means-tested, tax-free benefit paid by the Department for Work and Pensions to people over state pension age who need help with personal care or supervision because of a physical or mental disability.
There are two rates:
Higher rate: £108.55/week
For people who need help or supervision both during the day and at night. Most people with moderate to advanced dementia qualify at this rate because they need overnight supervision for safety — even if they are not actively receiving it.
Lower rate: £72.65/week
For people who need help or supervision either during the day or at night, but not both. People with early-stage dementia may initially qualify at this rate.
The claim form (AA1) asks about the help your loved one needs, not the help they currently receive. When filling it in, describe what would happen if no one were there to help. For someone with dementia, this means describing the risks: wandering, leaving the cooker on, not eating, not taking medication, falling, becoming distressed or agitated. Be specific and describe the worst days, not the best.
Attendance Allowance can be backdated to the date of claim, so apply as soon as possible after diagnosis. There is no requirement to have been diagnosed for six months first — this is a common myth. The qualifying period is six months of needing help, not six months of diagnosis.
Key point:Attendance Allowance is worth up to £5,644 per year at the higher rate. It is not counted as income for means-testing purposes when calculating eligibility for local authority care funding. Claiming it can also unlock other benefits, including the Council Tax SMI exemption and Carer's Allowance for the person looking after them.
PIP for people under state pension age
Personal Independence Payment (PIP) is the equivalent of Attendance Allowance for people aged 16 to state pension age. It has two components: daily living (similar to Attendance Allowance) and mobility. Each component has a standard and enhanced rate.
For people with early-onset dementia — diagnosed before state pension age — PIP can be worth significantly more than Attendance Allowance because of the mobility component. The enhanced mobility rate also qualifies for a Blue Badge and the Motability scheme.
PIP is assessed through a points-based system across activities like preparing food, managing medication, washing, dressing, communicating, and making decisions. Dementia affects many of these activities. The assessment considers reliability: even if someone can technically do something, if they cannot do it safely, repeatedly, in a reasonable time, and to an acceptable standard, they are treated as unable to do it.
If someone was already receiving PIP or Disability Living Allowance (DLA) before reaching state pension age, they can continue on that benefit. There is no automatic transfer to Attendance Allowance. In many cases, remaining on PIP is more beneficial because of the mobility component.
Important: If your loved one was diagnosed with dementia before state pension age, apply for PIP rather than Attendance Allowance. PIP daily living enhanced rate is £108.55/week and the mobility enhanced rate is £75.75/week — a combined maximum of £184.30/week (over £9,500/year).
Carer's Allowance and carer benefits
If you spend at least 35 hours a week caring for someone with dementia who receives Attendance Allowance (either rate) or PIP daily living (standard or enhanced rate), you may be entitled to Carer's Allowance. The rate is £86.45 per week in 2026/27.
To qualify, you must not be in full-time education (21 hours or more per week) and must not earn more than £204 per week after deductions (tax, National Insurance, pension contributions, and certain care costs). If you earn slightly over the threshold, check whether allowable deductions bring you under.
Even if you cannot receive the payment — for example, because you receive a state pension that overlaps — it is still worth making a claim. This is because an “underlying entitlement” to Carer's Allowance can trigger a carer premiumin the cared-for person's Pension Credit or other means-tested benefits, adding up to £45.60 per week to their income.
Claiming Carer's Allowance also provides National Insurance credits for each week you are caring. This protects your state pension entitlement if you have reduced your working hours or stopped work to provide care.
Council Tax discount and the SMI exemption
People with dementia can be “disregarded” for Council Tax purposes under the severe mental impairment (SMI) exemption. This is separate from the standard single-person discount and can be worth significantly more.
To qualify, two conditions must be met:
Medical certificate
A doctor (GP or consultant) must certify that the person has a 'severe impairment of intelligence and social functioning which appears to be permanent.' For someone with a dementia diagnosis, most GPs will provide this without difficulty.
Qualifying benefit
The person must be entitled to (not necessarily receiving) a qualifying benefit. The most common qualifying benefits are Attendance Allowance, PIP daily living component, DLA care component, or Incapacity Benefit. If your loved one receives Attendance Allowance, this condition is automatically met.
If the person with dementia lives alone, the property becomes exempt from Council Tax entirely (a 100% discount). If they live with one other person, that person receives a 25% single-person discount. If they live with another disregarded person (for example, another person with SMI, or a full-time carer who is also disregarded under the carer disregard), the property is again exempt.
The SMI exemption can be backdatedto the date the person first met both conditions. For many families, this means a refund of several years' Council Tax. Contact your local council to apply — you will need the medical certificate and evidence of the qualifying benefit.
Key point:This exemption is widely under-claimed. The Alzheimer's Society estimates that tens of thousands of eligible households have never applied. If your loved one has a dementia diagnosis and receives Attendance Allowance, they almost certainly qualify. Apply now and request a backdated refund.
Pension Credit and means-tested benefits
Pension Credit tops up weekly income to a minimum level — £218.15 per week for a single person or £332.95 for a couple in 2025/26. It also acts as a gateway benefit, unlocking free NHS dental treatment, help with health costs, Cold Weather Payments, and a free TV licence for over-75s.
Attendance Allowance is not counted as income for Pension Credit purposes. This means that claiming Attendance Allowance does not reduce your Pension Credit — you receive both in full. In addition, receiving Attendance Allowance can trigger a severe disability premiumworth £81.50 per week within Pension Credit, if no one receives Carer's Allowance for looking after the person and they have no non-dependants living with them.
If a carer has underlying entitlement to Carer's Allowance, the cared-for person's Pension Credit can also include a carer premium of £45.60 per week. The interaction between these benefits is complex, and it is worth getting a full benefits check from a local advice service or the national Pension Credit helpline.
NHS Continuing Healthcare and Funded Nursing Care
NHS Continuing Healthcare (CHC) is not technically a benefit — it is a complete funding package for people whose primary need for care is a health need. If your loved one qualifies, all their care costs are paid by the NHS, including care home fees, nursing care, and personal care. There is no means test and no charge.
People with advanced dementia frequently have a primary health need, particularly when their condition involves challenging behaviour, swallowing difficulties, severe cognitive impairment, or the need for clinical oversight. Despite this, around 80% of CHC applications are initially refused. The assessment process uses the Decision Support Tool (DST), which examines 12 care domains.
If your loved one does not qualify for full CHC but lives in a nursing home, they may be entitled to Funded Nursing Care (FNC). This is a flat-rate NHS contribution towards the cost of registered nursing care — currently £219.71 per week in England. FNC is paid directly to the care home and reduces the amount the family or local authority needs to pay.
CHC is worth pursuing: A typical nursing home placement costs £1,000-£1,500 per week. If your loved one qualifies for CHC, this is entirely covered by the NHS. Even if an initial application is refused, you have the right to request a local review and then escalate to an Independent Review Panel. Read our full guide to dementia and CHC funding.
Other benefits and entitlements
Free prescriptions
All prescriptions in Wales and Scotland are free. In England, people over 60 get free prescriptions. For those under 60, a medical exemption certificate may apply, or an NHS prescription prepayment certificate caps costs at £111.60/year.
Blue Badge
People with dementia can qualify for a Blue Badge under the 'hidden disabilities' criteria if they cannot undertake a journey without risk of serious harm to themselves or others, or if they need constant supervision. The application goes through your local council.
Free or reduced-cost travel
The English National Concessionary Travel Scheme provides free off-peak bus travel for people over state pension age or with a qualifying disability. Many local authorities offer additional concessions. In London, Freedom Pass holders get free travel on all TfL services.
Warm Home Discount
A £150 annual discount on electricity bills for people on Pension Credit or certain low-income benefits. Applied automatically for Pension Credit recipients; others may need to apply through their energy supplier.
Benefits in care homes vs at home
The benefits your loved one can receive depend on whether they live at home or in a care home, and on who is paying for the care home.
For the full 2026/27 rates, the historic earnings-limit indexing, and a complete decision matrix of what happens to Carer's Allowance when NHS Continuing Healthcare is awarded — including the four outcomes by care setting — see our Carer's Allowance 2026 family guide.
How benefits interact with the means test
When a local authority carries out a financial assessment for care funding, they look at income and capital. Understanding which benefits count as income — and which do not — can make a significant difference.
Attendance Allowance is not counted as income in the local authority means test for care at home. However, if you receive Attendance Allowance and the local authority is arranging your home care, the local authority can take the Attendance Allowance into account when calculating your contribution towards the cost of that care. In practice, this often means the Attendance Allowance effectively goes towards your care costs — but you are still better off claiming it, because without it the local authority would charge you the same amount from your other income.
The capital threshold for local authority care funding in England is £23,250 (2025/26). If your loved one has savings or assets above this level, they are expected to self-fund. The family home is not counted as capital if a spouse, partner, or dependent relative still lives there. If the person is in a care home and their capital falls below £23,250, the local authority will begin contributing.
NHS Continuing Healthcare has no means test at all. If your loved one qualifies for CHC, their income and savings are irrelevant — all care costs are paid by the NHS. This is why pursuing CHC is so important for families who are self-funding care home fees of £1,000 or more per week.
Frequently asked questions about dementia benefits
Can someone with dementia claim Attendance Allowance?
Yes. Attendance Allowance is one of the most important benefits for people with dementia who are over state pension age. It is not means-tested and is tax-free. Most people with a dementia diagnosis will qualify for the higher rate (£108.55/week in 2025/26) because they typically need supervision or assistance both during the day and at night. You do not need a formal care package in place to claim — the test is based on the help you need, not the help you currently receive.
What is the severe mental impairment Council Tax exemption?
A person with dementia can be 'disregarded' for Council Tax purposes under the severe mental impairment (SMI) exemption. This means they are not counted as a resident. If they live alone, the property is exempt from Council Tax entirely. If they live with one other person, that person gets a 25% single-person discount. To qualify, a doctor must certify that the person has a severe impairment of intelligence and social functioning, and the person must be entitled to a qualifying benefit such as Attendance Allowance or PIP daily living. The exemption can be backdated.
Does Attendance Allowance stop when someone goes into a care home?
It depends on who is paying. If the person is self-funding their care home fees, Attendance Allowance continues. If the local authority is paying for the care home placement (even partly), Attendance Allowance stops after 28 days. This is a critical distinction. If your loved one is self-funding and you have not claimed Attendance Allowance, you could be missing out on over £5,600 per year.
Can I claim Carer's Allowance for looking after someone with dementia?
Yes, if you spend at least 35 hours a week caring for someone who receives Attendance Allowance (either rate) or PIP daily living (standard or enhanced rate). Carer's Allowance is £86.45/week in 2026/27. You must not earn more than £204 per week after deductions. Claiming Carer's Allowance also gives you National Insurance credits towards your state pension, which is important if you have reduced your working hours to care.
What is the difference between Attendance Allowance and PIP?
Attendance Allowance is for people over state pension age. Personal Independence Payment (PIP) is for people aged 16 to state pension age. Both are non-means-tested disability benefits, but PIP has two components — daily living and mobility — while Attendance Allowance only covers care needs. If someone was already receiving PIP or DLA before reaching state pension age, they can continue on that benefit rather than switching to Attendance Allowance.
How does NHS Continuing Healthcare interact with other benefits?
If someone qualifies for NHS Continuing Healthcare (CHC), all their care costs are paid by the NHS — including care home fees. CHC is not means-tested. However, if someone is receiving CHC in a care home, Attendance Allowance and the care component of DLA/PIP will stop. CHC is worth far more than any benefit — a typical nursing home placement costs £1,000-£1,500 per week, all of which is covered by CHC. If there is any chance your loved one qualifies, pursuing CHC should be the priority.
Related guides
Dementia Care Costs
How much does dementia care cost in the UK? A breakdown of home care, residential, and nursing home fees.
Dementia and CHC Funding
How to get NHS Continuing Healthcare funding for someone with dementia — the assessment process explained.
Care Home Fees Guide
Who pays for care home fees, the means test explained, and how to avoid running out of money.
CHC Eligibility
Do you qualify for NHS Continuing Healthcare? The eligibility criteria and how to make your case.