As Beate says the pension still gets paid to the person concerned/POA/Deputy not to the home.
The s117 system is that the LA takes out the contract with the care home and the LA bills you for the top up (if there is one). You should not sign any contract with the home or pay them any money other than for things that aren't covered like hair dressing, chiropody, trips out and the like.
People under a s117 keep their pension you only need to tell the DWP if they get other benefits like PIP, DLA, mobility allowance and others all of which stop after a month from the date they were sectioned as does carers allowance if you get it.
K