Pension changes could cost couples £7,000

CHANGES TO pension credit could leave some couples £7,000 a year worse off, Age UK has warned.

Earlier this week, the Government announced changes to benefits for mixed-age couples from May 15.

Age UK said the change could leave “some of the poorest pensioners paying a hefty price for having a younger partner” and had been announced amid “Brexit distraction”.

The charity said some couples may find themselves in the “absurd position” of being financially better off if they split up and live apart.

At present, couples can claim pension credit of £255.25 per week if only one of them has reached state pension age.

But the rule change will mean in future people in those circumstances will only be able to claim less-generous Universal Credit payments of around £115 per week – a difference of up to around £7,000 a year.

Caroline Abrahams, charity director at Age UK, branded the change, announced by the Government on Monday “a substantial stealth cut”.

She said: “It is by no means unusual for one partner to be slightly older than the other within relationships and the bigger the age gap between them, the more long-lasting the adverse impact on them will be.”

In a written statement, Guy Opperman, Minister for Pensions and Financial Inclusion, said pension credit aimed to provide long-term support for pensioner households who are no longer economically active – not to support working age claimants.

He added: “This change will ensure that the same work incentives apply to the younger partner as apply to other people of the same age, and taxpayer support is directed where it is needed most.”