Little-known DWP benefit gives state pensioners extra £5,644 a year | Personal Finance | Finance

A little-known benefit can give pensioners an extra £5,644 a year to their pension pot.

Attendance Allowance is a benefit issued by the Department for Work and Pensions (DWP) to help with extra costs if you have a disability or health condition severe enough that you need someone to look after you.

More than one million people are estimated to be missing out on the benefit which can give you an extra £5,644 worth of support each year.

According to an analysis from Policy in Practice, just 69% of people who are eligible for Attendance Allowance are actually claiming it, meaning around 1.1 million people are missing out on cash they are entitled to.

The benefit is paid at two different rates, and the amount you receive depends on the level of care you require.

The lower rate is £72.65 per week and is given if you need frequent help or constant supervision during the day or at night. If you qualify for this, you can get a total of £3,777.80 over the course of a year.

The higher rate is £108.55 and is given to those who need help or supervision throughout the day and night, or a medical professional has said you’re nearing the end of life. If you qualify for the higher rate, you can get £5,644.60 over the course of a year.

It’s also worth noting that you could get extra Pension Credit, Housing Benefit or a Council Tax Reduction if you get Attendance Allowance, so it’s worth checking if you qualify.

You can apply for Attendance Allowance online via GOV.UK or by sending a claim form by post to Freepost, DWP Attendance Allowance. You can contact the Attendance Allowance helpline on 0800 731 0122 to request a claim form.

After you’ve applied you’ll get a tax or letter from the DWP within three weeks that explains when you can expect a decision. Once this is made you’ll get another letter explaining the outcome.

If you’re awarded the benefit the decision letter will tell you when to expect your first payment.