State pensioners are being warned about a little-known Department for Work and Pensions (DWP) rule that can affect benefits after a hospital stay of 28 days or more. While the state pension itself continues to be paid, other pension-linked payments can be cut or suspended.
Financial experts Pension Bee say the state pension is paid as normal in hospital, whether someone receives the old basic pension or the new state pension. The same does not apply to all related benefits.
Which benefits are hit by the 28-day rule?
Pension Credit is designed to top up income for people of state pension age with less than a certain weekly amount. It currently pays out £238 per week. For older state pensioners whose basic pension maxes out at £184.90 per week, Pension Credit can substantially increase income. Those on the new state pension who do not have a full National Insurance record, and therefore get less than the full £241.30 per week, can also claim it to top up their income.
However, Pension Bee sets out that a hospital stay longer than 28 days may affect how much Pension Credit is received. The firm explains: “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.”
Other payments affected may include Attendance Allowance, Disability Living Allowance and Personal Independence Payments, which could be stopped or reduced after a 28-day stay.
What counts towards the 28-day limit?
Age UK says that while the State Pension does not change no matter how long someone is in hospital, some payments are suspended after 28 days. The charity also warns: “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 someone receives Pension Credit, the suspension of these benefits can alter the amount of Pension Credit they get. Once they leave hospital, they may become eligible again. But Age UK notes: “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.”
What pensioners should do
Pensioners are advised to contact the office that pays their benefits when they go into hospital and again when they leave, quoting the number on the award letter for the benefits they 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.” It adds: “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.”
