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Going into hospital for any length of time used to cause havoc with a person's benefits. Different benefits stopped at different times and some people were left in hardship because the hospital rate of benefit was inadequate.

The hospital down-rating system, as it is called, was simplified in 2003. More changes will come into force in April 2006. These will mean most benefits will be kept at the full rate with no time limits and people who have had benefits reduced will have them reinstated.

But in the meantime, some people in hospital will still find their money going down or stopping until the new rules kick-in. If anyone goes in to hospital, it is important to advise the benefits office that is paying them. It's best to do this in writing.

Before April 2005
For a claimant aged 16 or over, disability living allowance (DLA) and attendance allowance (AA) stop after four weeks in hospital. The stopping of AA and DLA can mean that any income support, pension credit or housing and council tax benefit that is paid may also be reduced, because the claimant might lose the extra "premiums" they received for being awarded DLA or AA. Anyone claiming carer's allowance for the disabled person over 16 would have lost their right to that benefit too when AA or DLA stopped. Any extra income support or pension credit a claimant receives for being a carer of someone over 16 carries on for another eight weeks after the AA or DLA stops.

Because DLA and AA claims are only suspended when a person is in hospital, they can be paid again when they go home. They are also payable for short periods out of hospital, even a day.

For a child under 16 in hospital disability living allowance is suspended after 12 weeks. Carers allowance will stop when the AA/DLA stops. Any extra income support or pension credit a claimant receives for being a carer of someone under 16 carries on for another eight weeks after the AA or DLA stops. If the carer is the person in hospital, they will lose carers' allowance after 12 weeks.


If the claimant is in hospital for more than 52 weeks, income support and pension credit are reduced substantially. Housing and council tax benefits normally stop completely. Incapacity benefit, bereavement benefits and retirement pension are reduced to a very low figure too.

After April 2005
The new rules mean a person keeps most of their benefits at their full rate even after 52 weeks. This means that benefits like retirement pension and incapacity benefit won't be reduced to the "hospital rate".

But watch out for these exceptions:

• DLA and AA will still stop after four weeks (12 weeks for disabled children).
• Loss of DLA and AA will still affect other benefits as described above.
• Housing benefit will still be lost after 52 weeks, as it is assumed that the person is no longer liable for rent.

There are also rules for children's benefits, lone parents and couples that ensure money for children is paid. Some benefits, such as tax credits, are not affected at all.

Gary Vaux is head of money advice, Hertfordshire Council. He is unable to answer queries by post or telephone. If you have a question to be answered please write to him c/o Community Care