State pensioners are being told about a little-known benefits rule that affects those who end up staying in hospital for treatment.

Many probably don’t realise that there are DWP rules which govern how benefits are paid to state pensioners who have to go to hospital for an extended stay. Naturally, there will often be many state pensioners who end up being treated in hospital, given that state pensioners retiring today will be over 66.

According to financial experts Pension Bee, the state pension itself continues to be paid when you’re in hospital as normal, whether you’re on the old basic or the new state pension. But there are other pension benefits which are affected, including Pension Credit and Attendance Allowance.

Pension Credit is a benefit which tops up income for those who have less than a certain amount per week. It is open to anyone of state pension age, and pays out £227.10 per week.

For older state pensioners, whose basic pension maxes out at £174.45 per week, it means your income is hugely increased.

New state pensioners who don’t have a full National Insurance record, and therefore don’t get the full £230.25 per week, can also claim Pension Credit to top up their income to closer to the full amount – it’s just £3.15 per week short of the full amount anyway.

But Pension Bee sets out that Pension Credit eligibility is affected by time in hospital beyond 28 days. It says: “Pension Credit is a two-part benefit that supports those of State Pension age whose income is below a certain threshold. It includes the Guarantee Credit and Savings Credit benefit schemes.

“If you receive either of these benefits and your hospital stay is longer than 28 days, the amount you receive might be affected.

“This is because the amount of Pension Credit you receive is calculated to include income from other benefits – some of which may stop or be reduced if you’re in hospital for more than 28 days.”

It’s not just Pension Credit that’s affected, but Attendance Allowance, Disability Living Allowance and Personal Independence Payments which may be affected or stopped if you’re in hospital for 28 days or more.

Age UK adds: “Your State Pension doesn’t change, no matter how long you’re in hospital. But some payments are suspended if you’re in hospital for more than 28 days:

“If you transfer from hospital to a care home or community hospital for free short-term support known as intermediate care, this counts towards the 28-day limit.

“If you receive Pension Credit, suspension of these benefits can affect the amount of Pension Credit you receive. When you leave hospital, you may be eligible to receive these benefits again. However, if your Pension Credit award stops and you’re part of a couple where one of you is under State Pension age, you may not be able to reclaim Pension Credit.

“Contact the office that pays your benefits to let them know when you go into hospital and then again when you leave. You’ll need to quote the number on your award letter for the benefits you receive.”

The government says: “You must tell the office that pays your benefit as soon as possible if you: go into hospital for one night or longer.

“Your claim might be stopped or reduced if you do not report a hospital stay. Call the Pension Service helpline if you get one or more of: State Pension; Pension Credit; Attendance Allowance.”