Does your State Pension change if you go into hospital?

Your State Pension is not affected by a hospital stay. Whether you are in for a few days or more than a year, your basic State Pension or new State Pension carries on being paid at the same rate, and there is no point at which it stops because you are an in-patient¹.

What can change is the other support you receive. Some benefits stop being paid or decrease when you, your partner or child have been in hospital as an in-patient for a set period of time, while others are paid in full³. Pension Credit is the one most people ask about: it usually stays the same for a hospital stay of up to a year, but the amount you get may decrease if you are in hospital for more than four weeks¹.

The practical task is reporting. You must tell the relevant benefit office about any changes in your circumstances, and a hospital stay is one of them². This page sets out what stays the same, what can change, who to tell and when, and where to get free help.

Your State Pension is not affected by a hospital stay

The rule is simple and it does not depend on how long you are in. Your basic State Pension isn't affected by a stay in hospital, and the same applies to the new State Pension: your State Pension will not be affected¹.

This is because the State Pension is built on your National Insurance record and when you reach State Pension age, not on where you happen to be living or being treated⁷. Your new State Pension is usually based on your own National Insurance record⁸. Savings do not affect State Pension either, so money set aside does not put it at risk⁹. Nor does paying into a personal pension: you can save as much as you like into a personal pension and it won't affect your entitlement to the basic State Pension¹⁰. Saving into a workplace pension doesn't affect your entitlement to the State Pension because your State Pension is based on National Insurance contributions¹¹.

Earnings work the same way. Any money you earn won't affect your State Pension, though it may affect your entitlement to other benefits such as Pension Credit, Housing Benefit and Council Tax Reduction¹². If you keep working past State Pension age, you'll stop paying National Insurance¹⁴.

One thing worth knowing if you are still building your record: if you did not pay National Insurance while you were abroad, you can check your National Insurance record to see how your State Pension might be affected¹⁵. A State Pension statement gives you an estimate of how much State Pension you may get, based on your National Insurance contribution records up to now¹⁶.

How State Pension payments continue while you are in hospital

Payments carry on into your account on the same schedule. Your new State Pension is paid directly into your bank or building society account, or through the Payment Exception Service if you are unable to open or manage an account¹⁷. Nothing about a hospital stay changes that arrangement.

Tax is handled through your tax code rather than at source. Your State Pension will be paid to you without tax taken off, and instead your tax code will usually be changed so you'll pay the tax due from your wages or other pensions¹⁸. If the State Pension is your only income, you will usually pay no Income Tax because it is less than the Personal Allowance, unless your other earnings push you over it¹⁸. The State Pension rates usually change in April¹⁹.

There is one situation where payment stops, and it is not hospital. You cannot claim State Pension while you're in prison²⁰. Deferral rules also pause: you won't build up extra State Pension until you leave prison²¹.

If you are in hospital when you reach State Pension age, the claim process is unchanged. You will usually receive a letter from the Pension Service around four months before you reach State Pension Age telling you how to claim¹⁷. If you put off claiming, you may get more State Pension²², but you cannot build up this extra State Pension if you get certain benefits, and deferring can also affect how much you can get in benefits¹⁴. A higher weekly pension could disqualify you from Pension Credit²³.

Benefits that can change during a hospital stay

This is where a hospital stay does have consequences. When you or someone in your family go into or come out of hospital, the benefits you get may change²⁴. Some benefits stop being paid or decrease when you, your partner or child have been in hospital as an in-patient for a set period of time, while other benefits are paid in full³. Some benefits stop after you have been in hospital for a certain amount of time²⁵.

The table below sets out the main rules by benefit.

Pension Credit is separate from your State Pension, which is why the two behave differently²⁷. The additional amount for severe disability will stop after four weeks if you are in hospital and you lose your attendance allowance, Pension Age Disability Payment, DLA or Scottish adult DLA care component, PIP daily living component or adult disability payment daily living component²⁸. If you receive Income Support, income-related ESA or Pension Credit, this continues to be paid to you even if you are in hospital for over 52 weeks, but disability premiums are lost after that²⁹.

Day counting matters for Pension Age Disability Payment. Both the day you are admitted and the day you are discharged count as days out of hospital³⁰. For Pension Credit, the day you are admitted is treated as a day out of hospital and the day you are discharged is treated as a day in hospital²⁸.

What to tell the Pension Service and when

You must tell the relevant benefit office about any changes in your circumstances². It is important that you tell the DWP because some benefits stop after you have been in hospital for a certain amount of time²⁵.

For State Pension and Pension Credit matters connected to a care home stay, contact the Pension Service by phone or post³¹.

If you get Pension Age Disability Payment, tell Social Security Scotland if something changes after your payment has started³². Going into or coming out of hospital is a reportable change³³. It will be quicker if you have your National Insurance number, your bank account details, details of the change, and the date the change happened or will happen to hand³⁴.

Reporting late has a cost. You may have to repay the money if you did not report a change straight away, gave wrong information, or were overpaid by mistake³⁶. Where a change in the rate of state pension credit would otherwise take effect on a day which is not the first day of the claimant's benefit week, the change shall take effect from the first day of the benefit week next following³⁷. Where state pension credit is paid in arrears, a change of circumstances takes effect from the first day of the benefit week in which that change occurs or is expected to occur³⁸.

Managing your State Pension if you cannot handle your own money

If you cannot manage your claim, another person can claim State Pension for you as your appointee¹⁷. There's a different process if you want to collect State Pension on behalf of someone who cannot make their own decisions³⁵.

Payment arrangements can flex around this. Your new State Pension is paid directly into your bank or building society account, or through the Payment Exception Service if you are unable to open or manage an account¹⁷. That service exists precisely for people who cannot run an account themselves.

If you are claiming benefits and go into hospital, your benefit entitlement changes, so it is worth checking each one rather than assuming³⁹. Disability benefits over State Pension age can continue, but circumstances changes might affect them⁴⁰. Independent Age publishes a factsheet explaining what might happen and who to tell if your circumstances change while receiving one of these disability benefits, for example reaching State Pension age or going into a care home⁴¹.

Does going into a care home affect my State Pension?

Not the payment itself. You will still get your basic State Pension or your new State Pension if you move to live in a care home⁴². Moving into a home will not affect your State Pension, but it will be counted as income when your contribution to your fees is assessed⁶.

That assessment is where the money can be affected. If your care home fees are paid in full or in part by the local authority, the NHS or out of other public funds, you may have to use your State Retirement Pension to pay a contribution to the cost of care⁴². State pension and pension credit payments will continue at the same level, but if you get any council support, you'll likely have to pass on payments as a contribution to the cost of care⁴³.

The same reporting duty applies.

Where to get help and advice

Free, impartial help exists for every part of this. Independent Age, Age UK, Turn2us and the mental health and money advice service all publish free guidance on benefits in hospital and care homes². Carers UK covers Attendance Allowance for people who need help with personal care²⁶.

For State Pension queries, the Pension Service handles claims, changes and gaps. If you're above State Pension age, you'll need to contact the Pension Service to check if you have a gap in your National Insurance record, and they will also be able to tell you if it will benefit you to make a payment¹⁵. If you are over State Pension age you can contact the Northern Ireland Pension Centre, and if you are under State Pension age you can use the Check your State Pension forecast service⁴⁴. For cases where the service cannot be used, contact the Pension Service directly⁴⁵.

Pension Wise offers free guidance on your pension options¹⁸. If you are over State Pension age and on a low income, help with NHS dental treatment, glasses and transport costs for hospital appointments is available if you get a certain type of Pension Credit¹⁹.