Is Attendance Allowance taxable and can I claim it alongside my pension in 2026/27?

Full answer

Attendance Allowance helps with the extra costs of a disability or health condition if you are over State Pension age and need help with personal care or supervision. It is paid at two weekly rates depending on whether you need help during the day or night, or both. Crucially, it is non-taxable: HMRC ignores it entirely when calculating your Income Tax, so it does not use up any of your £12,570 Personal Allowance and is not added to pension income when working out whether you fall into the 20% basic or 40% higher rate band. You do not declare it on a tax return. It is also not means-tested, meaning your savings, capital and other income — including the New State Pension (around £241.30 a week) and any occupational or personal pension — have no bearing on whether you qualify or how much you receive. You can therefore claim it on top of all your pension income. Beyond being non-taxable, Attendance Allowance can unlock or increase other benefits: receiving it may make you eligible for extra Pension Credit, Housing Benefit or Council Tax Reduction (Council Tax Support in Wales), and a carer looking after you for at least 35 hours a week may then be able to claim Carer's Allowance. It does not count as income for those means-tested benefits and can increase the amount you get. Regional note: Attendance Allowance applies in England, Wales and Northern Ireland. In Scotland it has been replaced by Pension Age Disability Payment, administered by Social Security Scotland, which works in essentially the same way — tax-free, non-means-tested and payable alongside your pension. If your needs are expected to last, claim sooner rather than later, as awards generally start from the date of claim.

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