Hi diceman
Unless you have a care plan then moving into sheltered housing will not affect your benefits, you just need to report a change of address via your journal and details of your new rent and service charges. Not all service charges are eligible to be covered by the housing element. Some sheltered housing schemes have hot water/central heating included in service charges, these charges are classed as ineligible and will not be paid by UC or HB.
You will stay on DLA until you are reassessed or asked to apply for PIP. Remember PIP criteria is different than DLA criteria.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems