Govt to strip mixed-age couples of Pension Credit from May 2019
10 March 2019
The Government’s decision to strip mixed-age couples of the right to claim Pension Credit will leave thousands of couples facing a hit to their retirement finances.
The change, which will come into force in May 2019, will mean both partners in a couple will have to be over state pension age to be eligible for Pension Credit.
According to the government, around 15,000 mixed-age couples will be affected by the policy change in 2019/20, with this number rising to 40,000 by 2012/22 and as many as 60,000 by 2023/24. With Pension Credit worth up to £13,273 a year versus £5,986 a year for Universal Credit, at the extreme those affected could be over £7,000 a year worse-off as a result.
Tom Selby, senior analyst, AJ Bell, said: “While policymakers can reasonably argue this change has been in the offing since the Welfare Reform Act 2012, that will be little solace to those affected who face a potentially significant retirement income shortfall.
“Anyone who thinks they might be impacted should act now to claim Pension Credit while they still can.”
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