Which UK benefits are not means-tested? A guide for deputies & advisers

When managing the finances of a protected person, understanding which welfare benefits are means-tested, and which are not, is essential. For professional and lay deputies alike, this distinction directly affects financial planning, care funding, and overall client wellbeing. 

To unpack this complex area, Holly Miéville-Hawkins, Partner in the Court of Protection team at Anthony Gold Solicitors, sat down with Adam Booth, a Welfare Benefits Adviser at Chase de Vere. With over 13 years’ experience advising across the charity, public, and private sectors, Adam offers a clear explanation of the benefits that aren’t affected by income or savings, and how deputies can ensure clients receive their full entitlements. 

In this discussion, they explore the key non-means-tested benefits, ie; Personal Independence Payment (PIP), Disability Living Allowance (DLA) and Attendance Allowance (AA) and why these are especially relevant in the Court of Protection context. 

What do ‘non-means-tested’ benefits actually mean? 

Non-means-tested benefits are those that do not depend on a person’s income, savings, or capital. In other words, entitlement is based on specific conditions such as disability, age, or national insurance contributions rather than financial means. 

By contrast, means-tested benefits like Universal Credit or Income Support assess financial circumstances and taper payments based on income or assets. For deputies managing client funds, this distinction is critical: claiming a non-means-tested benefit won’t affect a client’s savings threshold or risk benefit reduction. 

As Adam Booth explains, “Non-means-tested benefits are where savings, capital and income don’t always impact. They’re designed to recognise additional needs rather than financial hardship.” 

These benefits often form a stable foundation in a client’s support package, ensuring that even those with significant compensation awards, even when held outside of a Trust or Deputyship, or other savings can still access financial help with care and mobility needs.

The three key non-means-tested benefits

1. Personal Independence Payment (PIP)

Personal Independence Payment (PIP) supports adults aged 16 to State Pension age who have long-term physical or mental health conditions. It’s divided into two components: 

• Daily Living – for those who need help with everyday activities such as washing, dressing, or managing medication. 

• Mobility – for those who have difficulty moving around. 

Unlike many other benefits, PIP is not affected by income or savings. A client could receive a substantial personal injury award or have a high level of savings, and still qualify if they meet the medical criteria. 

From a deputyship perspective, PIP can provide vital non-taxable income to help fund care packages or mobility equipment without breaching the client’s capital limits. 

Expert insight from Adam Booth: “PIP is one of the most important benefits for clients under deputyship. It recognises additional care or mobility needs and isn’t reduced because of compensation or inheritance.” 

PIP can also be a gateway to other benefits, such as Carer’s allowance. 

2. Disability Living Allowance (DLA)

Although Disability Living Allowance (DLA) has largely been replaced by PIP for adults, it remains available for children under 16 and some existing adult claimants who haven’t yet transitioned. 

DLA also has two components – care and mobility and, crucially, is non-means-tested. Deputies supporting families or young people should therefore review ongoing DLA entitlements and prepare for eventual reassessment under PIP criteria when the claimant turns 16 or thereafter. 

For professionals, understanding the DLA-to-PIP migration process is essential to avoid disruption in financial planning. If overlooked, a missed reassessment could lead to benefit suspension and unnecessary financial pressure on the client’s care arrangements. 

DLA can also be a gateway to other benefits, such as Carer’s allowance.

3. Attendance Allowance (AA)

Attendance Allowance (AA) applies to individuals over State Pension age who have care needs due to physical or mental health conditions. Like PIP and DLA, it is not affected by income or savings, and focuses solely on the level of care support required. 

For many deputies managing the finances of older adults, particularly those living in residential care or supported accommodation, AA can contribute significantly toward care fees or home-support costs. 

In practice, deputies should ensure that AA is being claimed where appropriate, even for clients with substantial savings or property ownership. Importantly, it has no mobility element to it. Missing this entitlement is a common oversight that can cost clients thousands of pounds annually. 

Professional insight: In Adam Booth’s experience, “Attendance Allowance is often missed for clients in care homes because people assume they won’t qualify due to savings or property. In fact, it’s entirely needs-based.” 

Why understanding non-means-tested benefits matters in Court of Protection work 

In the Court of Protection setting, deputies and advisers are tasked with maximising a client’s financial position while ensuring legal compliance and welfare protection. Understanding which benefits are unaffected by savings or compensation is vital to achieving that balance. 

Non-means-tested benefits can significantly improve a client’s financial sustainability without jeopardising other entitlements. For example: 

• A client receiving PIP can use that income to fund care at home without reducing their capital for means-tested benefits later. 

• An elderly person receiving Attendance Allowance may be able to use those funds to make the transition to receiving care easier. 

For professional deputies, these benefits also support accurate budgeting and annual reporting to the Office of the Public Guardian, demonstrating that all eligible financial supports have been explored. 

From a practitioner’s perspective: Ensuring non-means-tested benefits are claimed reflects good fiduciary management showing that the deputy is acting in the client’s best financial interests.

Common misconceptions and professional pitfalls around non-means-tested benefits

Even experienced deputies and legal professionals can misinterpret how non-means-tested benefits work. Small errors or assumptions can result in missed entitlements or incorrect financial advice.

1. Confusing contribution-based & non-means-tested benefits

A frequent misunderstanding is assuming that non-means-tested is the same as contribution-based. 

In reality, contribution-based benefits (like New-Style Employment and Support Allowance or State Pension) depend on National Insurance history, whereas non-means-tested benefits such as PIP, DLA, and Attendance Allowance are awarded purely based on needs, regardless of contributions.

2. Assuming savings always affect eligibility

People often assume that a client with significant savings, compensation, or property ownership cannot receive welfare benefits. This is true for means-tested benefits, unless there are exceptions in place, but not for the ones discussed here. 

Deputies should remember that non-means-tested benefits can often be claimed in parallel with other forms of support. For example, a client with a high-value settlement from a personal injury trust could still receive PIP to meet daily living needs.

3. Overlooking transitional or overlapping rules

As the Department for Work and Pensions continues to phase out DLA in favour of PIP, many clients risk losing entitlement due to missed reassessments or incomplete applications. Deputies must ensure that transitions are carefully monitored, especially when the protected person turns 16 or moves into adult services. 

4. Failing to seek professional welfare benefits advice 

The UK benefits landscape changes frequently, and subtle variations in eligibility can affect a deputy’s financial management decisions. In complex cases, particularly where clients receive multiple benefits or care funding streams, collaboration with a specialist welfare benefits adviser is essential. 

Expert advice from Adam Booth: “Even a small error in understanding eligibility rules can mean a client misses out on thousands of pounds of support each year. Deputies should never assume always verify.”

Frequently asked questions

Q1. What is the difference between means-tested and non-means-tested benefits? 

Means-tested benefits depend on your financial circumstances including savings, income, and capital. Non-means-tested benefits, however, are based on specific criteria such as disability or age and are unaffected by financial means. 

Q2. Is PIP affected by income or savings? 

No. Personal Independence Payment is entirely non-means-tested. Eligibility depends on how your condition affects daily living or mobility not your income, savings, or employment status. 

Q3. Can you get Attendance Allowance and Pension Credit at the same time? 

Yes. Attendance Allowance can be paid alongside Pension Credit. In some cases, receiving AA may even increase the amount of Pension Credit you receive due to additional “severe disability” elements. 

Q4. What happens if someone’s financial situation changes? 

A change in savings or capital won’t affect entitlement to non-means-tested benefits like PIP or Attendance Allowance. However, it may affect other means-tested benefits such as Universal Credit, so deputies should always review a client’s overall benefits position. 

Q5. How can deputies ensure clients receive all eligible non-means-tested benefits? 

Deputies should conduct regular welfare benefit reviews, ideally with input from a qualified adviser. This ensures entitlements remain up-to-date, especially when clients’ health or living arrangements change. 

Conclusion and next steps 

Understanding the distinction between means-tested and non-means-tested benefits is vital to responsible deputyship. Benefits such as PIP, DLA, and Attendance Allowance can significantly enhance a client’s financial resilience often without affecting their other entitlements. 

For Court of Protection deputies, ensuring that all eligible benefits are in place is not just good practice, it’s a demonstration of acting in the client’s best interests. By seeking professional welfare benefits advice and staying informed about eligibility criteria, deputies can secure sustainable, compliant financial outcomes for the people they support. 

For tailored advice on managing welfare benefits within Court of Protection deputyships, contact our specialist Court of Protection team at Anthony Gold Solicitors. Send us your query at mail@anthonygold.co.uk, or call us on 020 7940 4060.