Yahoo News DWP: People on State Pension could increase income to £1,300 per month with top-up
People receiving a State Pension could increase their income to £1,300 a month with a tax-free top-up. If they have health issues, they may be eligible for additional financial support, which could take their retirement income to over £1,300 every four weeks.
More than 1.5 million pensioners receive Attendance Allowance from the Department for Work and Pensions. However, it is believed that another 1.1 million are not claiming this benefit.
Attendance Allowance assists with extra costs if you have a disability or health condition that requires someone to help look after you, but you don't necessarily need to have a carer to make a claim. Attendance Allowance can also open the door to additional Pension Credit, Housing Benefit or Council Tax Reduction.
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The lower rate of £72.65 per week applies to those who need frequent help or constant supervision during the day, or supervision at night. A higher rate of £108.55 a week can be claimed by those who require help both day and night, or if a medical professional has said they may have 12 months or less to live, reports Birmingham Live.
To be eligible, you must have a physical disability (including sensory disabilities such as blindness), a mental disability (including learning difficulties), or both, which are severe enough that you require assistance with self-care or supervision for your own safety or the safety of others. You must also have required this help for at least six months before submitting a claim.
Claiming on top of the Old State Pension could boost total retirement funds to £278.05 per week, which is £1,122.20 every four weeks, or £14,458.60 annually. If claimed alongside the New State Pension, it could raise the total to £329.75 – equivalent to £1,319 every four weeks, and £17,147 annually.
Attendance Allowance isn't means-tested, so it is not affected by other income or savings. It also won't count as income that pushes you into a higher tax bracket, which currently has a personal tax allowance of £12,570 per year.
See the amounts of pension and Attendance Allowance, separately and combined, in our guide below.
New State Pension
Weekly rate 2024/25
Full rate: £221.20
Monthly equivalent (every four weeks): £884.80
Annual equivalent: £11,502.40
Old State Pension
Weekly rate 2024/2025
Category A or B basic pension: £169.50
Monthly equivalent (every four weeks): £678
Annual equivalent: £8,814
Attendance Allowance
Weekly rate 2024/2025
Monthly equivalent (every four weeks): Higher rate £434.20, lower rate £290.60
The annual equivalent for the higher rate is £5,644.60 and for the lower rate, it's £3,777.80
Combined amounts (per week)
New State Pension plus low rate Attendance Allowance: £293.85 (£1,175.40 every four weeks, £15,280.20 a year)
New State Pension plus high rate Attendance Allowance: £329.75 (£1,319 every four weeks, £17,147 a year)
Old State Pension plus low rate Attendance Allowance: £242.15 (£968.60 every four weeks, £12,591.80 a year)
Old State Pension plus high rate Attendance Allowance: £278.05 (£1,122.20 every four weeks, £14,458.60 a year)
The 10 most common conditions recorded on Attendance Allowance claims
Arthritis - 441,033 people
Dementia - 183,936
Heart disease - 109,452
Respiratory disorders and diseases - 89,789
Disease of the muscles, bones or joints - 77,326
Cerebrovascular disease (such as stroke, aneurysm) - 74,026
Back pain - 64,449
Malignant disease (cancer) - 52,618
Visual disorders and diseases - 48,909
Parkinson's disease - 41,507
