Claiming Attendance Allowance won’t reduce any other income you receive. It’s tax-free. If you’re awarded Attendance Allowance, you may become entitled to other benefits, such as Pension Credit, Housing Benefit or Council Tax Reduction, or an increase in these benefits if you’re already receiving them.

Attendance Allowance rates

Attendance Allowance isn’t means tested so it doesn’t matter what other money you get. It doesn’t matter how much you have in savings either – there’s no limit. It won’t affect your state pension and you can claim it if you’re still working and earning money.

Attendance allowance is non-taxable. Is it income for tax credits? Attendance allowance is not counted as income for tax credits, but if you receive Attendance Allowance and meet certain other conditions, it may help you qualify for disability or severe disability elements of working tax credit.

Carer’s Allowance is taxable. However, you will only have to pay tax if you have other sources of taxable income such as occupational or personal pensions or part-time earnings, and if this combined income takes you over the threshold for paying tax. Carer’s Allowance on its own is below this threshold.

If you have disabilities or are a carer you may be entitled to free or discounted travel on public transport. If you are a driver you may be entitled to an exemption from paying road tax, and to a blue badge which gives you parking concessions.

You will be paid the higher rate of Attendance Allowance if you meet one of the following criteria: you satisfy both the daytime and night-time tests. you are terminally ill (someone is classified as terminally ill if they are not expected to live longer than 6 months)

You can claim Attendance Allowance if you: have reached State Pension age. need care or supervision because you have an illness or disability. have needed care or supervision for at least 6 months because of your illness or disability.

Attendance Allowance cannot be used to lease a car through the Motability Scheme.

It includes both a worker’s salary, or wages, as well as non-cash income, which are called fringe benefits. Benefits that are completely tax free include health insurance, retirement services (like a deferred compensation plan), and de minimis benefits, which are those that cost only minimal amounts.

Carer Allowance is a fortnightly payment. There is an annual income test , but no assets test. Carer Allowance is not taxable.

Attendance Allowance Lower Rate £60.00: Requiring frequent help or constant supervision during the day or night. Attendance Allowance Higher Rate £89.60: Needing help or supervision through the day and night (or terminally ill). Note: You may also qualify to get extra Housing Benefit, Council Tax Reduction, or Pension Credit.

Attendance Allowance is tax free. But, the amount you get is completely dependent on the level of nursing care required. So, it is your particular disability that determines which rate you get. There is no benefit means testing to claim the Attendance Allowance.

Criteria for Attendance Allowance Providing your age is 65 years or older you meet the Attendance Allowance eligibility criteria if any or all the following apply: You have a physical disability (which can include sensory disabilities such as blindness). You have a mental disability (includes learning difficulties).

A change in circumstances can affect your benefit payments. This may result in a move between the lower and higher rates. Contact the Attendance Allowance helpline any time your circumstances change or when: The level of help you need or your condition changes. You go into hospital or a care home for more than 4 weeks.