The Department for Work and Pensions (DWP) has issued a warning about a little-known '28-day rule' that could see certain benefit payments stopped for state pensioners who spend a prolonged period in hospital. Many retirees are unaware that specific rules impact how pension-related benefits are paid out during lengthy spells of medical care.
State Pension Unaffected, but Other Benefits at Risk
According to financial experts Pension Bee, the state pension itself remains unaffected regardless of the duration of a hospital stay, whether the individual receives the old basic or new state pension. However, several other benefits linked to pension payments face potential reductions or suspension once a hospital admission surpasses 28 days, leaving many pensioners caught off guard.
Benefits That May Be Reduced or Stopped
The benefits at risk include Pension Credit, Attendance Allowance, Disability Living Allowance, and Personal Independence Payments (PIP), all of which may be reduced or halted entirely once the 28-day threshold is crossed.
Independent Age states: "You must tell the relevant benefit office when you go into an NHS hospital and when you come out. If you do not report a hospital stay of one night or longer, you may be overpaid your benefits and you'll have to pay back any money you owe. Your State Pension will not be affected."
Disability Benefits and the 28-Day Rule
If you remain in hospital for 28 days or more, you will stop receiving these benefits. Upon both entering and leaving hospital, you must contact the relevant helpline for Attendance Allowance (AA), Pension Age Disability Payment (PADP), Personal Independence Payment (PIP), Adult Disability Payment (ADP), or Disability Living Allowance (DLA). Different numbers apply for DLA depending on whether you were born before or after 8 April 1948.
Independent Age added: "If you're discharged but go back into hospital within 28 days, the days spent in hospital will be added together. If the total is more than 28 days, you'll no longer qualify for those benefits until you return home. The day after you enter hospital is counted as day one. The day before you leave hospital is the last day. These rules are different if you get PIP and go straight into a care home from the hospital - contact the PIP enquiry line for more information."
If you have a Motability agreement for a car, scooter or electric wheelchair, contact Motability if you're in hospital for more than 28 days. They'll discuss appropriate arrangements with you about your lease, depending on your circumstances.
Housing Benefit and Pension Credit
Claimants can continue receiving Housing Benefit throughout a hospital stay of up to one year, provided their property has neither been let nor sublet during that period. Pension Credit provides vital income support for those of state pension age whose earnings fall below a specified weekly threshold, offering eligible claimants £238 per week. For those receiving the older basic state pension, which reaches a maximum of £184.90 weekly, this top-up makes up a considerable chunk of their total income.
Those receiving the new state pension without a full National Insurance record, and who therefore receive less than the full £241.30 weekly sum, can also apply for Pension Credit to boost their earnings. Pension Bee explains that Pension Credit consists of two elements supporting those whose earnings fall below a certain threshold, covering both Guarantee Credit and Savings Credit schemes.
Important Considerations for Couples and Care Home Transfers
Age UK warns that transfers from hospital to care homes or community hospitals for free short-term intermediate care also count towards the 28-day limit. The charity added: "If you receive Pension Credit, suspension of these benefits can affect the amount of Pension Credit you receive." Couples where one partner has yet to reach state pension age may need to take particular care, as Age UK notes they "may not be able to reclaim Pension Credit" if their award is suspended during a hospital stay.
Reporting Requirements
The Government emphasises that pensioners must inform the relevant benefits office immediately upon being admitted to hospital for one night or more. Failure to report a hospital stay could result in claims being stopped or reduced, according to official guidance. Age UK advised: "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."
Those claiming state pension, Pension Credit, or Attendance Allowance need to contact the Pension Service helpline to inform them of their hospital admission and later discharge.
