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Is AA still paid when upper limit is reached?


Registered User
Jun 4, 2008
North west England.
I have sold my mum's house and after payment of her equity release fee and her deferred payment scheme with our L.A, I find mum's savings to be just under the upper limit of 23,250.
Can anyone tell me does she now lose all of her AA? I have just learned of her new weekly contribution to the care home (as worked out by LA) is more than her pension and occupational pension combined and if I lose the AA as well her pensions will not cover the cost of the home.
Can anyone advise as to whether I will lose the AA?


Registered User
Jun 27, 2006
If the LA starts to pay some part of her care home fees, yes she will lose the AA. On the other hand the LA contribution will go up accordingly. If her current financial assessment was made on the basis that she would be self-funding after the sale of her house, you need to go back and tell them they need to do a new assessment.

Basically, she will be expected to pay her entire state and occupation pensions, plus £1 per week for every £250 she has over the lower limit, minus the £23.75 personal expense allowance.