Q My friend, who has just gone into a nursing home, has savings of £11,580 and has to pay £104.43 towards his care costs. How will this change as his savings go down? Also he should be receiving a personal allowance of about £19 a week. How is this paid?

A When his capital goes down to £10,000, it will be ignored. Currently, £11,580 in capital means that your friend's income from savings is taken as being £4 a week. His income will be treated as decreasing by £1 for every £500 reduction in his savings. His share of his care cost takes account of all of his income so, after paying it, he should be left with at least the amount of his personal allowance.

Q My husband and I both receive State Pensions and Attendance Allowance. We do not have to pay any council tax and receive £79.69 a week pension Credit, which includes £8.24 for mortgage interest. When the mortgage is paid off, will we continue to receive the balance of £71.45?

A Yes. Also, as you both receive Attendance Allowance, you can receive extra Pension Credit if each of you provides care for the other. Check with the Pensions Service that you are getting all you could claim.

Q I am 64, with Incapacity Benefit of £91.68 a week and Industrial Injuries Benefit of £49.52. My wife earns £14,000 a year and we have two adult working sons at home. Can we get any help with our rent of £54.49 a week and council tax of £100.90 a month?

A The council will assume a contribution from your sons, which varies according to their income. Even without this, however, I am afraid your income is too high for you to qualify for help.

Q I have been receiving a State Pension paid at 64 per cent of the standard rate for the past ten years. However, I never receive the full benefit of the yearly pension increase. I thought all pensioners received the same rise.

A All State Pensioners receive the same percentage increase each year. This year's is 3.1 per cent. This means you will have a smaller cash increase if your State Pension is less than 100 per cent.