UK News: Government Green Paper Threat to DLA and AA for Over-65s (and a £20,000 Tax Bill)

2009 October 30

Reported by Benefits and Work, the UK government green paper on the proposed National Care Service includes a “ruinous” shocker for people turning 65 who claim Disability Living Allowance (DLA) or Attendance Allowance (AA). The proposals include:

  • Removal of entitlement to the middle rate of the care component of DLA, and,
  • A one-off tax payment of up to £20,000 either,
    • Payable on turning 65, or,
    • Recoverable from the elderly’s estate upon death.

The proposal suggests removing some or all of AA (the Benefits and Work page is unclear on this).

Benefits and Work say that the green paper suggests that the cost of care of one elderly person paid for by this tax would be between £17,000 and £20,000. The payment is means tested, so the poorest pensioner without many means or a house may be exempted.

As I read the website, however, this is only one of a range of suggestions. I suggest anyone claiming DLA and/or AA read the site for themselves. You can read more about the options and leave a comment here: http://careandsupport.direct.gov.uk/greenpaper/execsum/comment-page-52/#comment-6204

Members of Benefits and Work can read their article here: £20,000 shock birthday tax for all

Benefits and Work are a subscription organisation that offers advice and campaigns on behalf of those claiming a range of state benefits in the UK. A subscription costs just  £18.55 for a full year: http://www.benefitsandwork.co.uk/home




  1. I think that this is somwthig that we will have to keep an eye on so that it doesn’t go under the radar. I’ve written a similar post here http://carehomes.whereforcare.com/blog/?p=194

    • Hi,

      I agree. I have been picking up on a strong current of anti-incapacity and anti-disability sentiment in both government and main opposition (here in the UK) in recent years now. Though I’m on incapacity benefit and not disability living allowance myself, I am concerned that this plan to introduce a new way to pay for care of the elderly may be blighted by this current.

      Take care.

  2. Every time I come to porillion.wordpress.com you have another remarkable post up to read. A friend of mine was talking to me about this topic a couple weeks ago. I think I’ll send them the link here and see what they say.

    • Thank you for your kind words.

      Take care.

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