State pensioners across the UK need to be aware of a seldom-discussed yet crucial Department for Work and Pensions (DWP) rule that could significantly affect their income during extended hospital stays. While the basic State Pension continues without interruption regardless of hospitalisation, several additional benefits such as Pension Credit, Attendance Allowance, Disability Living Allowance (DLA), and Personal Independence Payment (PIP) are subject to reduction or suspension after 28 consecutive days in hospital or equivalent care settings.
Breakdown of the 28-Day Hospital Rule and Affected Benefits
| Benefit | Effect of 28-Day Hospital Stay | Notes |
|---|---|---|
| State Pension | Unaffected | Continues as normal |
| Pension Credit | May be reduced | Especially if linked benefits stop |
| Attendance Allowance | Stopped entirely | After 28 days |
| Disability Living Allowance (DLA)/ Personal Independence Payment (PIP) | Suspended | After 28 days |
| Carer’s Allowance | May stop | If cared-for person’s benefits stop |
The Core of the Hospital Rule
The 28-day hospital rule applies to various means-tested and disability-related benefits. If a pensioner remains hospitalised or in free intermediate care for more than 28 continuous days, the government assumes a significant portion of their living costs is covered, justifying these adjustments. While the State Pension itself continues unaffected, the reductions or stoppages in supplementary payments can cause substantial income loss.
In-Depth Look at the Affected Benefits
Pension Credit functions as a top-up to income for those with low weekly earnings, with the 2025 Guarantee Credit level set at £227.10 per week. A hospital stay and cessation of linked benefits like Attendance Allowance can reduce this essential financial support. Attendance Allowance, aimed at helping pensioners with disabilities or illnesses manage personal care, has weekly rates of £72.65 (lower) and £108.55 (higher) in 2025; it ceases entirely beyond the hospital stay threshold. Similarly, DLA and PIP, supporting mobility and care needs, are suspended after 28 days.
Counting the Hospital Days and Its Continued Impact
The 28 days are counted consecutively, including interim care between hospital stays. If discharged and readmitted within 28 days, the count continues without reset. This continuous tally underscores the importance of understanding and monitoring hospital admissions for benefit recipients.
Consequences of Benefit Reductions During Hospitalisation
Stopping or reducing these benefits can lead to financial hardship, with losses possibly exceeding £600 per month when multiple payments halt. The absence of Attendance Allowance alone means losing up to £108.55 weekly, while reductions in Pension Credit also meaningfully affect household budgets, impacting the ability to manage bills, support carers, and maintain financial security during recovery.
Reporting and Preventing Overpayments
Pensioners must notify the DWP immediately upon hospital admission, regardless of the duration, and also when transferring to intermediate care or care homes. Not doing so risks overpayment demands and abrupt benefit suspensions. Practical steps include contacting benefit offices promptly and having award letters and reference numbers ready for verification.
Restoring Your Benefits
Upon discharge, most suspended benefits can be reinstated without undue delay. However, complexities arise for certain cases, such as couples where one partner is below the State Pension age, which may delay or prevent Pension Credit reclaiming. Timely communication of discharge dates to the DWP is vital for smooth benefit restoration.
Important Financial Figures for Reference in 2025
| Benefit | Weekly Rate (Max) |
|---|---|
| New State Pension | £230.25 |
| Old Basic State Pension | £174.45 |
| Pension Credit (Guarantee Credit) | £227.10 |
| Attendance Allowance (Lower Rate) | £72.65 |
| Attendance Allowance (Higher Rate) | £108.55 |
Awareness of the 28-day hospital rule is essential for state pensioners to avoid unexpected losses in key benefits during hospital stays. While your core State Pension remains secure, vigilance is required to manage associated benefits affected by prolonged absence from home. Reporting hospital admissions swiftly to the DWP, understanding which benefits face suspension, and planning for potential income gaps can help mitigate financial risks and allow serious focus on health recovery with peace of mind.