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Published On: Wed, May 15th, 2019

State pension: How much couples will get drops by £7,000 a year TODAY | Personal Finance | Finance


The state pension credit couples of “mixed-age” can claim will drop by £7,000 a year as of today.

State pension credit rules changes mean that the number of people who can claim pension credit is being cut.

Pension credit was brought into effect by Labour Prime Minister Gordon Brown, and was devised to help those pensioners in financial difficulty.

As of today, if you are claiming state pension but are married to someone below the state pension age you may be £7,000 a year poorer.

A whopping 60,000 mixed age couples will be affected by this clamp down, the Department of Work and Pensions has said.

Now couples will only be able to claim benefits for pensioners once both of them have reached state pension age.

It used to be the case that state pension benefits were available to married Britons once the eldest person in a couple was at state pension age.

Now mixed age couples will have to claim universal credit instead. The maximum amount you can claim on this benefit is £5,986.

State pension credit is a means tested benefit. Those claiming it can currently get up to £13,273 a year.

This is a total loss of £7,287 a year for couples affected.

Age UK have claimed that in 2019 to 2020, out of the 15,000 affected by the reform, 4,650 mixed-age couples would lose out on £35,000.

This is because they will have to wait at least five years for their younger partner to reach state pension age, depriving the of many thousands of pounds of state pension credit.

Pension credit is made up of two parts – guarantee credit and savings credit.

Guarantee credit tops up your weekly income if it’s below £167.25 (for single people) or £255.25 (for couples).

Savings Credit provides some extra money if you’ve made some provision towards your retirement by saving, or with a pension other than the basic State Pension.

There have been further warnings that your state pension could be cut after an administrative error. 

Those who ‘contracted out’ their state pension are at risk of having their payments cut now.

But why is this? It is due to an error by HMRC.

Did you use the second state pension, also known as the State Earnings Related Pension Scheme (SERPS) or did you opt to contract out?



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