UK pensioners can increase tax‑free income and claim underused Attendance Allowance

State pensioners in the United Kingdom can raise their tax‑free income to as much as £21,330 by combining two HM Revenue & Customs schemes. The Marriage Allowance lets a lower‑earning partner transfer £1,260 of personal allowance to the spouse, increasing the recipient’s tax‑free allowance to £13,830, while the Rent‑a‑Room scheme provides up to £7,500 of rental income exempt from tax. Together with the standard personal allowance of £12,570, the total tax‑free amount can reach £21,330.

At the same time, the Department for Work and Pensions’ Attendance Allowance—worth up to £5,959 a year for eligible pensioners with disabilities—is widely underclaimed, with an estimated one million eligible people not receiving it. Financial‑advice expert Martin Lewis urges pensioners to check eligibility, noting that the benefit is not means‑tested and can be claimed regardless of other income.

HMRC describes Marriage Allowance as “letting you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner.” Lewis adds, “For many older people who are ill or start to face mental or physical disability, life doesn’t just get tougher, it gets costlier too,” encouraging a simple two‑minute application.