Understanding Personal Expenses Allowance

July 3, 2024

Personal Expenses Allowance (PEA) is a weekly amount of money that people receiving local authority-arranged care in a care home get for their personal needs.

It’s a way to protect all of a person’s money from being taken into account when paying care home fees, meaning they can keep this allowance to pay for small items of their choice.

About Personal Expenses Allowance

The local authority will leave each care home resident with a weekly Personal Expenses Allowance to spend as they want to.

For example, someone might spend this on:

  • Toiletries
  • Birthday gifts
  • Stationery
  • Newspapers & magazines
  • Haircuts
  • Treats
  • Anything else that they might like.

Criteria for receiving Personal Expenses Allowance

Anyone whose care and support in a care home is arranged by a local authority is eligible for the Personal Expenses Allowance.

It is mandatory that care home residents are allowed to keep it and spend it how they wish, and are not asked to put the Personal Expenses Allowance towards the cost of care.

Personal Expenses Allowance amounts

The amount you will receive for a Personal Expenses Allowance will depend on where you live within the UK. For the 2024/25 tax year, you will receive:

  • England – £30.15 per week
  • Scotland – £34.50 per week
  • Northern Ireland – £30.15 per week
  • Wales – £39.50 a week (Personal Expenses Allowance is now called now called the ‘Minimum income amount’ or MIA in Wales)

Local authorities also have the discretionary power to increase a Personal Expenses Allowance under certain circumstances. To apply for an increase, contact your local authority’s social care department.

FAQs

What is a Personal Expenses Allowance? A Personal Expenses Allowance (PEA) is a weekly amount of money that people receiving local authority-arranged care and support in a care home get for them to spend as they like.

What is a Personal Expenses Allowance used for? Care home residents can spend their Personal Expenses Allowance as they wish, usually on toiletries, birthday gifts, stationery, newspapers & magazines, haircuts or treats.

Do I need to put my Personal Expenses Allowance towards the cost of my care fees? No, you should never be asked to contribute towards the cost of your care from your Personal Expenses Allowance.

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