Thousands of people with dementia could be missing out on Government support worth thousands of pounds each year, experts warn. Despite dementia being the UK’s leading cause of death and affecting a large portion of the population—half of all adults personally know someone with the condition—many are failing to claim benefits they are entitled to, leaving significant financial gaps.
Financial specialists at Zurich, the life insurance provider, have raised alarms about a widespread lack of awareness. The average cost of living with dementia can be staggering: mild cases cost around £28,700 annually, and severe cases can exceed £80,500 per year. Without claiming available benefits, families often face unnecessary financial strain, especially as care needs intensify over time.
Why People Are Missing Out
Peter Hamilton, head of Market Engagement at Zurich UK, explained that the system is often a barrier in itself. “Many benefits are not automatic, meaning that you or your LPA (lasting power of attorney) must apply for them, which is a key barrier for people with cognitive impairment,” he said.
The problem is compounded by diagnosis gaps. Research indicates that over a third of people with dementia in the UK have not received a formal diagnosis, which automatically limits access to support schemes. Even those with a diagnosis may not claim benefits due to the complexity of the application process or misconceptions about eligibility.
“People with dementia are disproportionately likely to miss out due to complex systems, cognitive decline, and low awareness,” Hamilton added. He estimates that many are leaving between £1,000 and £5,000 annually unclaimed.
Attendance Allowance: An Underutilized Lifeline
A primary benefit often overlooked is Attendance Allowance, designed for people of State Pension age who need help with personal care due to long-term illness or disability. Payments range from £76.70 to £114.60 per week. While modest at first glance, successfully claiming Attendance Allowance can unlock additional support, such as extra Pension Credit, Housing Benefit, or council tax reductions.
Hamilton emphasised that misunderstanding eligibility is common: “Attendance Allowance is not means-tested, so many assume incorrectly they will not qualify.” For many families, securing this allowance can substantially ease the burden of day-to-day supervision and care needs typical in dementia.
Could Automation Solve the Problem?
Zurich specialists propose a more radical solution: automated benefit triggers. By linking certain health records directly to the benefits system, applications could be initiated automatically for those eligible, reducing reliance on individuals or family members to navigate complex forms. This approach could dramatically reduce unclaimed entitlements and ensure more consistent support.
Hamilton noted: “Automating benefit eligibility could remove the cognitive burden from people living with dementia and their families, helping them focus on care rather than paperwork.”
Looking Ahead
The warning from Zurich highlights a broader issue within the benefits system: many people are unaware of the support available, and even those who are aware face hurdles in claiming it. As dementia continues to impact a growing portion of the UK population, ensuring access to financial support is critical not just for individuals, but for families and the wider healthcare system.
FAQs
1. Who is eligible for Attendance Allowance?
People over State Pension age who require help with personal care due to long-term illness or disability.
2. How much can I receive from Attendance Allowance?
£76.70 per week at the standard rate, or £114.60 at the higher rate, depending on care needs.
3. Is Attendance Allowance means-tested?
No, eligibility is based on care needs, not income or savings.
4. Can claiming Attendance Allowance unlock additional benefits?
Yes, it can qualify you for extra Pension Credit, Housing Benefit, or reductions in council tax.
5. What can be done to make benefit claims easier for people with dementia?
Experts suggest automated triggers based on health records could streamline applications and reduce unclaimed benefits.
