New health benefit due to replace Attendance Allowance for people over State Pension age by next year

People over State Pension age resident in five local authority areas will be the first in the country to be eligible for a new disability benefit which is set t replace Attendance Allowance for people living in Scotland. Pension Age Disability Payment will be rolled out in phases from October 21, 2024, starting in Argyll and Bute, Highland, Aberdeen City, Orkney and Shetland.

The benefit will become available in 13 more local authority areas on March 24 next year before rolling out nationwide across Scotland by April 22, 2025. Pension Age Disability Benefit is for people over 66 who have a disability or long-term health condition that means they need help looking after themselves or supervision to stay safe.

It is tax-free, not means-tested and will be paid at the same rates as its Department for Work and Pensions (DWP) counterpart. This means it will be worth either £72.65 (lower rate) if you need help during the day or at night or £108.55 (higher rate) if you need help during the day and at night, or if you are terminally ill.

People who currently receive Attendance Allowance will be automatically moved from the DWP benefits platform to the Social Security Scotland system. This will happen in phases, with the first benefit awards expected to be transferred in early 2025.

The latest figures from the DWP show 136,252 people living in Scotland are currently in receipt of Attendance Allowance. Existing claimants do not need to apply for the devolved benefit and there will be no breaks in payments during the transition.

The Scottish Government said Pension Age Disability Payment has been designed with the help of people who will be eligible for the benefit and those who support them.

Improvements include a streamlined process for people to nominate a third party representative who can support them to communicate with Social Security Scotland.

Eligibility for Pension Age Disability Payment

Legislation has still to be approved or the new benefit, however, proposals state that it will be for people who meet the following criteria:

• People who are State Pension age (66) and over

• People who have had their condition for at least six months

• People who require additional care

Guidance from Gov.Scot adds: “It is anticipated that eligibility rules for Pension Age Disability Payment will remain broadly similar to Attendance Allowance.”

It also states: “It is our intention that the rate of all forms of disability assistance will remain the same as the current rate of the equivalent UK disability benefit. The rate of assistance will increase in line with inflation each year.”

This migration process from DWP systems for those on Attendance Allowance, along with those on Personal Independence Payment (PIP), Disability Living Allowance (DLA) and Carer's Allowance, will see around 700,000 people move to the new Scottish welfare system by the end of 2025.

Below is an overview of what we know so far about Pension Age Disability Payment, if you need extra help now contact DWP - full details about Attendance Allowance can be found on GOV.UK here.

Pension Age Disability Payment

Attendance Allowance claimants living in Scotland will automatically transfer to the new system, so there’s no need to apply for the devolved benefit. People receiving the financial support in England and Wales will not be affected by the change and will continue to receive regular payments from the DWP.

Pension Age Disability Payment rollout timetable

From October 21, 2024:

• Argyll & Bute, Highland, Aberdeen City, Orkney and Shetland

From March 24, 2025:

• Aberdeenshire

• East Ayrshire

• North Ayrshire

• South Ayrshire

• Na h-Eileanan Siar (Western Isles)

• Stirling

• Clackmannanshire

• Falkirk

• Fife

• Angus

• Dundee City

• Perth & Kinross

• Moray

From April 22, 2025:

• Nationwide rollout across Scotland

Existing claimants who currently receive Attendance Allowance will be transferred to the devolved system in stages after the new benefit has been introduced.

Who will be eligible to make a claim for the Pension Age Disability Payment?

Eligibility rules for Pension Age Disability Payment will remain similar to Attendance Allowance. This benefit is for people who are of State Pension age or over, who have had their condition for at least six months and require additional care.

How will claims be assessed?

Social Security Scotland will make decisions about entitlement for Pension Age Disability Payment using the applicant’s account of their circumstances and existing supporting information.

As already mentioned, there will be no face-to-face assessments as part of the application process.

Guidance on the new devolved disability benefits on GOV.SCOT explains: "We are making the application process as simple and easy as possible to encourage and support people to apply for the payments they are entitled to. The application process for disability assistance will be inclusive, accessible, provided in a range of formats and available through a range of routes (online, phone, post and in-person).

"We are making a number of improvements to the application form to include clear guidance on how the eligibility criteria is applied. This will ensure a client is supported in providing relevant information with in-person support available."

Payment rates for Pension Age Disability Payment

Social Security Scotland will provide Pension Age Disability Payment at the same weekly rate as Attendance Allowance. It is also currently doing this for the devolved Child Disability Payment and Adult Disability Payment.

The current weekly payment rates for Attendance Allowance are:

• Lower rate - £72.65

• Higher rate - £108.55

How do I apply for the Pension Age Disability Payment?

You cannot apply for the new disability assistance benefit yet.

Anyone over State Pension age with a disability that means they need assistance with looking after themselves, or supervision to keep them safe, should continue to apply for Attendance Allowance through the DWP.

For the latest updates on the new Disability Assistance being delivered by Social Security Scotland, visit the website here.

Join our Daily Record Money WhatsApp community here to receive alerts on the latest money news from benefits to shopping deals.