‘Sneaky’ change to State Pension means you might be £7,000 a year worse off

THE STATE pension is a sum of money most retired Britons rely on to make ends meet. Pensions credit is another benefit to help those who would otherwise face poverty. But some new age rules mean families will be £7,000 a year worse off

A state pension credit rule change has seen experts warn that Britons would be £7,000 a year worse off. Couples who are of mixed ages will be hit by the new rule change, branded ‘sneaky’. The announcement was made during the build up to the Brexit deal vote. The new rules mean that a couple cannot claim pension credit until the youngest partner reaches the state pension age of 65.

The cut will affect couples where one partner is older than the other.

What is pension credit?

Pension credit supplements the UK state pension, and was introduced by Gordon Brown in 2003.

The aim of the supplement is to help retired people out of poverty.

It is given to those whose retirement income is less than £163 per week for a single person and £248 per week for a couple. The cut to the benefit, which was implemented in January 2018, could leave people £7,000 worse off - and this is how.

Before the 2018 cuts, couples would be able to claim up to £13,273 a year with pension credit.

However, the new rules mean they will instead have to claim universal credit, and get only £5,986 a year. The change will be implemented from 15 May 2019.

Former Pensions Minister Steve Webb said: “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.”

Caroline Abrahams, charity director at Age UK, said the change could leave "some of the poorest pensioners paying a hefty price for having a younger partner" and even in the "absurd position" of being financially better off living apart.

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