Personal Expenses Allowance (PEA) in care homes

When you move into a care home, a lot of your income, such as your State Pension, may go towards your care home fees.

So that residents still have some money to spend on personal items, a little is set aside each week.

In England, Scotland and Northern Ireland, the name for this is Personal Expenses Allowance (PEA). Meanwhile in Wales it is Minimum Income Amount (MIA).

What is Personal Expenses Allowance (PEA)?

Personal Expenses Allowance is for people who are:

• Living in a care home in England, Scotland or Northern Ireland
• The local authority funds their care (state funding)

Minimum Income Amount is for people who are:

• Living in a care home in Wales
• The local authority funds their care (state funding)

How much is Personal Expenses Allowance (PEA) / Minimum Income Amount?

The current rates (per week) for 2025 are:

England: £30.65

Scotland: £35.90

Wales: £44.65

Northern Ireland: £27.19

Local authorities can increase the amount of PEA or Minimum Income Amount you get, if they feel you need more. Examples could be if you have a vehicle and need to buy fuel, if you have a pet or if you are financially supporting your spouse. This is discretionary and based on individual needs.

Where does Personal Expenses Allowance / Minimum Income Amount come from?

Personal Expenses Allowance or Minimum Income Amount comes from your income. This could include your State Pension, any private pension and any benefits you receive.

While the lion’s share of these will go towards paying for your care, your PEA or MIA is taken from it for you to spend as you please.

PEA or MIA is disregarded from your income when calculating how much you should pay towards your care home fees.

What can I spend PEA / MIA on?

You can spend your Personal Expenses Allowance or Minimum Income Amount on whatever you like, it’s your money for your personal use.

It should not be spent on your care, and no local authority or care home has the legal right to ask you to spend any of it on your care.