Last Updated: July 17, 2026
Quick Summary
- Topping up your state pension when in care home accommodation is possible through Pension Credit if you meet the financial thresholds.
- The Standard Minimum Guarantee for the 2026/27 financial year is £238.00 per week for single individuals.
- Permanent residents are assessed as single applicants and always retain a £31.80 weekly Personal Expenses Allowance that cannot be taken for care fees, as confirmed by the 2026/27 DHSC social care charging circular.
You may not be aware that it is possible to increase your state pension when in care home settings by claiming Pension Credit. This is a means-tested weekly benefit that boosts your weekly income once you have reached State Pension age. Pension Credit is made up of Guarantee Credit and Savings Credit, both of which play a role in how you pay for care home fees. According to DWP research on Pension Credit uptake, a common barrier is the mistaken belief that modest savings or a partner’s income rule you out entirely – often they do not.
Guarantee Credit and your state pension when in care home residency
To qualify for Guarantee Credit, you must be at State Pension age. This weekly payment is calculated by subtracting your total income from your Appropriate Minimum Guarantee.
Your total income includes your State Pension, occupational and private pensions, Social Security benefits, and assumed income from savings and investments (often called deemed income). As explained in the DWP Pension Credit technical guidance, your deemed income is £1 for every £500 you have over the assumed figure of £10,000.
For the 2026/27 financial year, the Appropriate Minimum Guarantee is:
- Single person: £238.00 per week.
- Couple: £363.25 per week.
If you are severely disabled, a caregiver receiving Carer’s Allowance, or have certain housing costs like ground rent or service charges, you may receive a “premium” or “addition” that increases these amounts. For example, the Independent Age 2026 Pension Credit factsheet gives the illustrative case of “Mrs Bilam”, whose entitlement rises noticeably once a Carer’s Addition is factored in – a reminder that it is always worth checking whether an addition applies to you.
Savings Credit
You may receive Savings Credit if you reached State Pension age before 6th April 2016 and saved money for retirement, such as a workplace pension or personal pension.
For 2026/27, the thresholds are £208.07 for a single person and £329.75 for a couple. Eligible people receive 60p for every £1 of income above these thresholds, capped at a maximum of £17.96 (single) or £20.10 (couple). This can be a useful addition to your state pension when in care home accommodation. As Age UK notes, “You have nothing to lose by applying, and potentially a lot to gain.”
Other Benefits and Local Authority Support
If you receive Guarantee Credit, you can access “passported” support, including:
- NHS Dental Care and assistance with travel to hospital appointments.
- Housing Benefit and a Council Tax Reduction (potentially covering costs in full).
- Winter Fuel Payment and Cold Weather Payment (subject to 2026 eligibility).
If you only receive Savings Credit, you may still qualify for a Council Tax reduction, provided you have less than £16,000 in savings and investments. Contact your local authority for a full financial assessment.
2026/27 Pension Credit & Care Funding Comparison
| Key Funding Figures (2026/27) | Single Person | Couple | Strategic Impact |
|---|---|---|---|
| Standard Minimum Guarantee | £238.00 / wk | £363.25 / wk | Increased by 4.8% (Triple Lock) |
| Savings Credit (Maximum) | £17.96 / wk | £20.10 / wk | For those who reached SP age pre-2016 |
| Personal Expenses Allowance (PEA) | £31.80 / wk | N/A | Protected income for personal use |
| Savings Credit Disregard | Up to £7.30 / wk | Up to £11.00 / wk | Extra income ignored by the council |
| Capital Limits (England) | £14,250 (Lower) / £23,250 (Upper) | Thresholds frozen for 2026/27 | |
Expert Insight: The ‘Savings Credit Disregard’
Why the Disregard Matters
The Savings Credit Disregard is a vital protection for those who have been prudent. While most of your total income is typically used to contribute toward care home fees, the local authority is legally required to ignore (disregard) a portion of your Savings Credit award. For the 2026/27 year, confirmed by the DHSC charging circular, this means you can keep up to £7.30 per week (or £11.00 for couples) on top of your £31.80 Personal Expenses Allowance (PEA). Without this disregard, individuals receiving a state pension when in care home care with modest private pensions would be left with the same amount as those with no savings at all, effectively penalising their retirement planning.
Claiming Pension Credit and your state pension when in care home settings
If you move into a care home, your eligibility is initially calculated as if you were living in your own home. The first £10,000 of your savings is ignored, as set out in the DWP Pension Credit technical guidance.
However, your circumstances change if you become a permanent resident. According to the Independent Age 2026 factsheet, couples living permanently in a care home are each assessed as single people. If your partner remains at home, you must each claim Pension Credit independently to support your state pension when in care home long-term stays. It is also important to note that moving into a care home must be reported to the Pension Service as a change of circumstances – and that a move from temporary to permanent residence is a separate trigger to report.
When a local authority completes a means test, they must ensure you are left with a Personal Expenses Allowance (PEA). For 2026/27, the PEA in England is £31.80 per week. If you receive Savings Credit, they should also apply a savings disregard of up to £7.30 per week (£11.00 for couples), allowing you to keep a small portion of your private income.
Frequently Asked Questions (2026 Update)
What happens to my Pension Credit if I go into hospital? If you have a temporary stay in hospital, your Pension Credit usually continues. However, if you are a resident in a care home, your “passported” benefits like Attendance Allowance stop after 28 days, which may require a Mandatory Reconsideration of your care fee contribution.
Can I give money away to qualify for Pension Credit? If the DWP or local council believes you have gifted money to avoid care fees or qualify for benefits, they may assess you as having “notional capital.” This is known as deprivation of assets.
How and when to claim Pension Credit
If you have already claimed your State Pension and there are no young people involved in the claim, apply online. Otherwise, call the Pension Credit claim line on 0800 99 1234. This helps ensure you receive the correct amount of state pension when in care home life.
Key Facts for 2026:
- Timing: Apply up to four months before reaching State Pension age.
- Backdating: Claims can be backdated by up to three months.
- Information required: You will need your National Insurance number, bank details, and records of all savings and investments.
If your circumstances change, such as moving into a care home or a change in your total income, you must report it to the Pension Service immediately to avoid overpayments. Rates in this article have been verified against the DWP and DHSC published figures for 2026/27. Care Choices has been producing independent social care information for local authorities for over 25 years and is an independent publisher – see about us for more detail.
Frequently Asked Questions
Can I still claim Pension Credit alongside my state pension when in care home accommodation?
Yes, your claim can usually continue. It is generally calculated using the same rules as if you lived at home. However, your eligibility shifts if you become a permanent resident. See Age UK factsheet 48 for detailed guidance.
Are couples still assessed together if one moves into a care home?
Usually, they are not. If one partner moves permanently to a care home, the benefit is assessed separately as single people. See Age UK’s partner guide for more clarity.
What happens to my claim if the care home stay is temporary?
Temporary residents are often still treated as a couple for Pension Credit. This applies if your time apart is unlikely to surpass 52 weeks. Help with housing costs can also occasionally continue during this time.
Do savings over £10,000 impact my claim in care?
Yes, savings over £10,000 are treated as producing tariff income. There is no hard upper limit for Pension Credit, but this deemed income lowers what you receive. Care fee means tests rely on entirely different capital limits. Review Age UK factsheet 10 to learn more.
Do I have to report moving into a care home?
Yes, entering residential care is a reportable change of circumstances. You must inform the DWP if your stay lasts longer than four weeks, becomes permanent, or if your funding changes. You can notify them via the official GOV.UK portal.
