Answers · UK 2025/26
How does Attendance Allowance affect other benefits in the UK?
Attendance Allowance is tax-free and does not count as income for means-tested benefits. Receiving it can actually increase entitlement to Pension Credit, Housing Benefit, and Council Tax Reduction by triggering a disability premium or severe disability premium addition.
Full answer
Attendance Allowance (AA) is a non-means-tested, non-contributory benefit for people aged 65 and over who need help with personal care due to a physical or mental disability. In 2026/27, the lower rate is £76.70/week and the higher rate is £114.60/week. Effect on other benefits: 1. Tax: AA is completely tax-free and does not need to be declared on a Self Assessment return. It does not count as income for income tax purposes. 2. Pension Credit: AA is not counted as income for Pension Credit purposes. Better still, receiving AA can trigger an 'additional amount for severe disability', which increases Pension Credit entitlement by approximately £81.50/week (2026/27 severe disability premium for single person). This is a significant uplift. 3. Housing Benefit: AA is disregarded as income for Housing Benefit calculations. Receiving AA can also trigger a disability premium (£35-£40/week additional allowance) within the Housing Benefit assessment, increasing the applicable amount and potentially the benefit paid. 4. Council Tax Reduction: Similar to Housing Benefit -- AA is disregarded as income and may trigger additional premiums in the local authority CTR scheme. 5. Universal Credit: Attendance Allowance is not available to new claimants under State Pension age (they would claim PIP or DLA instead). For those over State Pension age, AA does not affect Universal Credit as pensioners generally cannot claim UC. 6. Carer's Allowance: A carer looking after an AA recipient may become eligible for Carer's Allowance (worth £83.30/week in 2026/27) if they provide at least 35 hours of care per week and meet the earnings test. Many AA recipients are unaware of the additional premiums they can trigger -- it is worth claiming AA promptly and then asking a benefits adviser to check all linked entitlements.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.