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Disability benefits for older people: how does the UK Attendance Allowance system really work?

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  • Pudney, Stephen

Abstract

We analyse FRS survey data on the relationship between disability and receipt of the Attendance Allowance (AA) disability benefit by older people. Despite being non-means-tested, we find that AA is implicitly income-targeted and strongly targeted on those with care needs. We focus particularly on the receipt of higher-rate benefit, intended for those in need of day-and-night care, finding that, in practice, higher-rate payments are negatively related to age and income, in addition to care needs. The allocation of higher-rate AA awards strongly favours people with physical rather than cognitive disabilities.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2010-02.

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Date of creation: 25 Jan 2010
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Publication status: published
Handle: RePEc:ese:iserwp:2010-02

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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References

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  1. Hugo Benitez-Silva & Moshe Buchinsky & Hiu Man Chan & Sofia Cheidvasser & John Rust, 2000. "How Large is the Bias is Self-Reported Disability?," NBER Working Papers 7526, National Bureau of Economic Research, Inc.
  2. Ruth Hancock & Geraldine Barker, 2005. "The quality of social security benefit data in the British Family Resources Survey: implications for investigating income support take-up by pensioners," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(1), pages 63-82.
  3. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
  4. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
  5. Debra S. Dwyer & Olivia S. Mitchell, . "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," Pension Research Council Working Papers 98-7, Wharton School Pension Research Council, University of Pennsylvania.
  6. Duncan McVicar, 2008. "Why Have Uk Disability Benefit Rolls Grown So Much?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 114-139, 02.
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Cited by:
  1. repec:ese:iserwp:2012-09 is not listed on IDEAS
  2. Zantomio, Francesca, 2013. "Older people's participation in extra-cost disability benefits," Journal of Health Economics, Elsevier, vol. 32(1), pages 320-330.
  3. repec:ese:iserwp:2013-05 is not listed on IDEAS

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