People who receive local authority arranged care and support do not give up the right to receive the state pension. Local authority support for meeting the costs of care and support is means tested. Following a financial assessment, those who can afford to will contribute towards the cost of their care.
People receiving care and support in care homes will be required to contribute to the costs from their income, but local authorities are required to leave them with a minimum amount of income for personal expenses. This Personal Expenses Allowance (PEA) is currently set at £24.40 per week. It will rise to £24.90 per week in April. Local authorities have discretion to set a higher PEA in certain circumstances. People above state pension age who have income above the threshold for receiving the savings credit element of Pension Credit will retain a further £5.75 per week for a single person or £8.60 per week for a couple.
Where people received local authority support with care and support in their own home the local authority is required to ensure that their income is not reduced bellow basic levels of Income Support or the Guaranteed Credit of Pension Credit plus a buffer of 25%.