Sneaked out, couples’ £7k pension blow

‘Retired and on very low income

A CHANGE to pension credits which could leave couples up to £7,000 poorer has been sneaked out by Ministers.

Cuts will leave the worst-off families struggling on drastically lower incomes than they previously expected, according to analysis by savings firm Royal London.

The authorities were accused of pushing ahead with the changes at a moment when the nation was focused on last night’s Brexit vote in a bid to avoid an outcry.

Sir Steve Webb, a former pensions minister who is now director of policy at Royal London, said: ‘This change to the benefit rules means that some couples could lose thoulook sands of pounds. People who may be affected deserve to know about this change and not have it sneaked out on a day when ministers were no doubt hoping that everyone’s attention was directed somewhere else.’

At present, low-earning couples can claim pension credit worth up to £255.25 a week or £13,273 a year if just one of them is past the state pension age – currently 65.

But in future, couples where only one person is a pensioner will have to claim less generous universal credit payments instead. These come to only a maximum of £498.89 a month or £5,986.68 per year – a difference of £7,286 annually.

The younger member of the couple will also come under pressure to for work, or risk losing the benefit. Pensions Minister Guy Opperman announced the changes in a Parliamentary statement on Monday evening.

He said: ‘Pension Credit is designed to provide long-term support for pensioner households who are no longer economically active. It is not designed to support working age claimants.

‘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.’

These rules will come into effect for new claims made after May 15.

They have been expected since Parliament approved benefits reforms back in 2012.

But it is feared they will force many older people who thought they could give up work to stay in a job for far longer than planned.

And someone who is about to retire with a younger partner will have less money to live on than they previously hoped.

Margaret Greenwood, Labour’s shadow work and pensions secretary, said: ‘People who are retired on a very low income should not lose out on pension credit simply because they have a younger partner. This announcement, sneaked out on the eve of the Brexit vote, will mean mixed-age couples are forced to claim the Government’s flawed universal credit – with the younger partner potentially subject to the sanctions regime.’