Good morning

With Parliamentarians and the media, fully focused on the Commons Brexit vote, Guy Opperman, Parliamentary Under Secretary of State for Pensions & Financial Inclusion, decided it was the ideal time to make a written statement on the Government’s future plans in relation to the way mixed age couples will be treated, in terms of which benefit they claim – Pension or Universal Credit?

The statement explains – “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.”

What this means is – from 15th May 2019, where mixed aged couples make a NEW claim, and one is under pensionable age, they will almost certainly be required to claim Universal Credit, rather than Pension Credit. At a very basic level, this would mean a drop of £580 per month but could be even more, when other elements apply. In addition, the younger member of the couple would be subject to “conditionality” rules i.e. be expected to demonstrate they’re actively seeking employment or more hours, higher earnings, where they’re already working.

DWP has produced a Pension-credit-extra-information-factsheet explaining the significance of this change.

Couples with one partner under State Pension age who are already in receipt of Pension Credit or pension-age Housing Benefit, at the point of change, will be unaffected while they remain entitled to either benefit. A break in either claim however could force a new claim under the new, less generous, regime.

This is definetely a change which should be highlighted to all your frontlne staff, and those tenants potentially affected, as the implications are very significant.

If you require any further information on this topic please get in touch.

Bill Irvine

UC Advice & Advocacy Ltd