Millions of Brits could be missing out on a tax-free payout worth up to £5,959 a year – with many wrongly assuming that they won’t qualify because they have savings or a decent pension.

The benefit – Attendance Allowance – is not means-tested – meaning income, investments or nest egg are irrelevant when it comes to eligibility. And with payments going up from April, the maximum annual amount will climb from £5,740 to £5,959 – a boost of around +3.8%.

The benefit is aimed at people over State Pension age (currently 66, rising to 67) who need help due to illness, disability or frailty.

Crucially, it is based on care needs – not wealth. That means even relatively well-off pensioners who struggle with daily tasks, or need supervision to stay safe, could qualify for the payments.

Latest figures show around 1.8 million people already claim it – up by roughly +8% year-on-year.

What you can get

Attendance Allowance is paid at two weekly rates depending on how much help you need:

• £76.70 a week (lower rate)
• £114.60 a week (higher rate)

That works out at up to £5,959 a year.

The lower rate applies if you need help either during the day or night, while the higher rate is for those needing care both day and night – or who are terminally ill.

What counts as needing help?

You don’t need to have a carer – just to show you would benefit from support.

This could include:

• Help washing, dressing or eating
• Supervision due to memory problems or confusion
• Risks such as falling, leaving appliances on, or wandering
• Conditions like dementia, hearing or sight loss
• Even needing someone to check on you regularly can be enough.

A surprising extra

Unlike many benefits, the money is tax-free and doesn’t reduce other payments. In fact, it can actually increase entitlement to other support such as pension credit, housing benefit or council tax help.

However, councils may take it into account when assessing how much you should contribute towards care costs.

How to claim

You’ll need to fill in a detailed form, available via the Attendance Allowance helpline or by post.

Be prepared – the application can be lengthy, and experts advise including as much medical evidence as possible, such as:

• GP or consultant letters
• Care plans
• Prescription details

Decisions typically take a few weeks, and if you’re turned down you have one month to challenge it through a “mandatory reconsideration”.

Why so many miss out

Despite the sizeable sums on offer, thousands fail to claim because they assume:

• They earn too much
• They don’t have a formal diagnosis
• They don’t have a carer
• But none of these automatically disqualify you.

Details can be found here.