Benefits rule changes could cost pensioners in UK thousands a year
Thousands of poorer UK pensioners who have partners of working age could lose up to £7,000 a year in top-ups as a result of imminent rule changes that will require them to claim universal credit as a couple.
Changes slipped out on Monday night by the Department for Work and Pensions mean that from 15 May, new pensioners whose partners are younger than the state retirement age of 65 can no longer claim a means-tested top-up called pension credit.
Instead they will be forced to claim the much less generous universal credit alongside their younger partners.
The couple rate of universal credit is £114.81 a week compared with £255.25 for a couple receiving pension credit. This amounts to a potential loss of £7,320 a year.
Age UK described the change as a “substantial stealth cut” and said it could have a devastating effect on the health and wellbeing of some older people and increase the numbers of pensioners in poverty.
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Caroline Abrahams, charity director, 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 because of this proposed change.
“That’s why this government policy has been dubbed ‘the toy boy tax’ by some – but that’s not to trivialise the really serious impact it is likely to have on anyone unlucky enough to be subjected to it. For some, the impact will be truly devastating. The government should think again.”
The scale of the potential losses faced by couples could put pressure on existing relationships, say experts, and may persuade them that they cannot afford to marry or move in together.
Read more @The Guardian