Changes to Pension Credit.

[HelenaDove]

From 15 May Pension Credit couple rate will only be paid if both are over 65

twitter.com/JosephineCumbo/status/1084920673296961536

www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2019-01-14/HCWS1249/

mzolobajluk.wordpress.com/2019/02/04/pensioners-now-to-be-sanctioned/

Pensioners now effected by benefit sanctions.

Image result for pensioners poor

Universal Credit (UC) and mixed aged pensioners Part 1

Pensioners now to be sanctioned.

The new rule being implemented on 15th May of this year 2019 states that where one person is of state pension age and the other is still of working age the couple will not be allowed to claim Pension Credit and will instead be forced to claim Universal Credit, which is worth less.

The old rules stated that as soon as one person reached retirement age then their partner could be included on that Pension Credit claim. This means that the younger member of the couple is included within the Pension Credit claim because their partner is over the qualifying age.

Back in the beginning of 2012 it came to light that the Government was going to implement changes to the regulations for mixed-aged couples. Realizing what these devastating changes were going to mean to me personally I asked Steve Webb, then The Minister for Pensions, Eight questions. This is question Four, along with his answer and what it actually means for these couples.

Question 4: “There are no work related sanctions for people above the qualifying age for Pension Credit in the current system. If the younger partner is sanctioned, how is this going to affect the partner who has reached Pension Credit Age?”

Steve Webb: “Claimants who have reached the qualifying age for Pension Credit will not be subject to work-related requirements. Where one member of couple is subject to work-related requirements and receives a sanction then there UC award will be reduced by an amount equivalent to half of the UC standard Allowance.”
Implications of this change: Benefit rates from April 2019/20

In this policy area the Government said it would protect pensioners. However it appears they will not receive this protection if they have a younger partner because they will also be redefined as working age. This, I believe, is discriminatory as it treats pensioners with a current Full State Pension differently to those who have not been able to amass one.

The current Full State Pension if paid monthly at £559.86 or £129.20per week takes these couples above the couple’s Standard allowance in UC of £498.89 per month or £113.05per week. Therefore there is nothing to sanction, as sanctions can only be taken from their Standard Allowance.

Sanctions will apply only to those who are the poorest pensioners, whose State Pension is below the Universal Credit Standard Allowance. E.g. State Pension of £394.30per month or £91.00 per week is counted as income and deducted from the couples Standard Allowance, which gives them a Standard Allowance payable of £104.59per month or £24.13per week. Meaning that they can be sanctioned, as they are in receipt of partial payment of UC Standard Allowance.

Their Standard Allowance of £104.59per month or £24.11 can be sanctioned at 50% (see below) which reduces their income by £52.30per month, or £12.06 leaving them with a weekly total of £91. + £12.06 = £103.06 for both people to live on per week.

The person who has reached Pension Credit qualifying age, although having no claimant commitment of their own is directly affected by this ruling as they have not received a current Full State Pension of £129.20.

“Step 3: If necessary, adjust the amount produced by step 2 so that it does not exceed—

(a) the amount of the standard allowance applicable to the award; or

(b)in the case of a joint claim where a determination under section 26 or 27 of the Act applies only in relation to one claimant, half the amount of that standard allowance.”

www.legislation.gov.uk/uksi/2013/376/regulation/110

“Sanctions reductions are applied after taking earnings and unearned income into account.

If there is insufficient Universal Credit remaining after this to take the full sanction amount, the sanction reduces the award to nil and is treated as having been made in full.

You will remain entitled to Universal Credit and will therefore maintain access to ‘passported’ benefits such as free prescriptions.”

www.gov.uk/government/publications/universal-credit-and-you/universal-credit-and-you-a#sanctions Ref 9.9 Reduction of sanctions from Universal Credit Updated 19th December 2018.

www.ageuklondonblog.org.uk/2019/02/22/mixed-age-couples-universal-credit/

"Mixed messages, mixed-age couples and Universal Credit
February 22, 2019 Paul TreloarFinance, Pensions

Universal Credit has been prominent in the news lately, whether it’s the Secretary of State for Work and Pensions Amber Rudd acknowledging that a rise in foodbank use may be linked to the highly troubled roll-out, or the much trailed announcement that a two-child limit will not be applied retrospectively. However, you could find yourself not having heard about another significant policy development, which will soon affect tens and potentially hundreds of thousands of older couples. On the evening of 14 January 2019, in a written ministerial statement given to the House of Commons at 7.20pm, and the day before the Brexit meaningful vote taking place, Pensions Minister Guy Opperman informed MPs that from 15 May 2019, mixed-age couples will both need to reach State Pension age in order to make a claim for Pension Credit. One cannot help arriving at a conclusion that the Department for Work and Pensions (DWP) were looking to bury something which they thought might generate some negative headlines

A mixed-age couple is, as the name suggests, one in which one partner has reached State Pension age, whereas the other partner has not. Currently, a couple in this situation are able to choose whether to claim Pension Credit or Universal Credit. From a financial perspective, the choice is usually very straightforward – the standard Pension Credit rate for a couple is more than £7,000 a year more than equivalent amount under Universal Credit.

Currently, there are around 115,000 mixed-age couples claiming Pension Credit, Housing Benefit, or both. These couples will not be affected by this change initially, due to savings provisions. However, any break in these claims, even for a single day, could see entitlement lost completely and needing to reclaim would mean they would need to claim Universal Credit instead.

Further, from 15 May 2019, all new claims will have to be for Universal Credit, with both partners in the mixed-age couple being required to submit an online claim and manage an online account.1 The older partner will not be required to undertake work-related activity but the younger partner will be subject to full conditionality unless their work coach agrees to a relaxation

Age UK has already been contacted by couples where the younger partner is providing care for the older partner and who are extremely concerned about both the financial loss and their ability to manage the work-seeking requirements whilst also maintaining care for their partner. Age UK has highlighted that this policy could produce the absurd situation where a single pensioner would be better off separating and living apart from their partner, due to the simple fact that Pension Credit for a single person pays more than Universal Credit does to a couple.

In response to this move, we’re aiming to undertake two interlocking activities. The first and most pressing is to try and highlight the change to couples who are potentially affected and encourage them to claim whilst they can. We know that underclaiming of Pension Credit is already a huge problem, with estimates of more than £3 billion not being paid each year. Anyone who does want to check whether they are entitled can use the Age UK benefit calculator which only takes about 10 minutes from start to finish.

Alongside this awareness raising, we’ll also be lobbying for the policy to be reversed entirely. We welcome Ms Rudd’s pledge to “tread cautiously,” when moving existing benefit claimants onto Universal Credit through its managed migration programme. However, given the well-publicised problems of implementation of Universal Credit already, it’s difficult to understand the motivation to suddenly and unexpectedly throw older mixed-age couples into the melting pot.

If the policy does go ahead, we’ll be pressing for consideration being given to higher personal allowances being payable for mixed-age couples, as already happens with the legacy benefits being replaced by Universal Credit. This would at least ameliorate some of the potential financial losses. And there’s a whole range of other more technical issues that do not appear to have been fully considered, which need clarification prior to implementation.

With State Pension age having now equalised between women and men, and then continuing to rise, to 66 years in 2020 and 67 years in 2028, it is inevitable that more and more couples are going to be affected by this change over time. The complete lack of public communications from DWP to date has worrying echoes of what happened with the WASPI women when pension ages were first increased and no-one wants to see a repeat of that situation.

To have your say on the #AgeGapTax, add your name to this Age UK petition.

Footnotes

1. Although note, due to Pension Credit and Housing Benefit for pensioners having up to 3-month’s backdating, the absolute last day for new claims is effectively 13 August 2019, provided the claimant can show they were entitled as of 14 May 2019"

Paul Treloar
‏ @PaulieTandoori

Can honestly say, this has been one of busiest and most stressy weeks at work I can remember in long time. This mixed age couple change for Universal Credit causing chaos already and it hasn't even started.
6:43 PM - 21 Feb 2019

Paul Treloar
‏ @PaulieTandoori
15h15 hours ago

Working out how people will move from UC to PC, working out when people already on PC/HB will lose it and why, dealing with clients reaching 65 after May 15 and distressed to hear they're losing ££££'s. That kind of thing.
1 reply 0 retweets 1 like
Paul Treloar
‏ @PaulieTandoori
14h14 hours ago

For eg, under UC, couples are treated as permanently separated after 6 months. If mixed age couple split after 15 May, older partner can't claim UC due to age but can't claim PC as need to be separated for 12 months to no longer be treated as couple.

I think this warrants posting twice.

"For eg, under UC, couples are treated as permanently separated after 6 months. If mixed age couple split after 15 May, older partner can't claim UC due to age but can't claim PC as need to be separated for 12 months to no longer be treated as couple"

@Graphista the latest head fuck in regards to this.

www.bordercountiesadvertizer.co.uk/news/17464208.shropshire-couples-will-be-hit-by-pension-credit-change/

www.gov.uk/government/publications/mixed-age-couples-benefit-impacts-of-ending-access-to-pension-credit-and-pension-age-housing-benefit/mixed-age-couples-benefit-impacts-of-ending-access-to-pension-credit-and-pension-age-housing-benefit

I still can't see why anyone under pension age should get pension credits.
Just because it will affect you does not make it wrong.

So why should those couples on UC who split up be classed as split up after six months.

Yet if a mixed age couple split after 15 may they arent classed as split until 12 months.

I thought this was all about even stevens.

Oh you will see Just wait a min.

The Pension Service wrote to us today to let us know what changes in circumstances would put my 69 year old husband and i over to UC

*if you leave "Great" Britain for more than 4 consecutive weeks
*if your household income or savings increase.
*if you or your partner move out of your home.
*if you move home into a new local authority area.
*if your or your partners entitlement to another benefit ends.

The letter is in regards to Housing Benefit.

Im guessing there will be less couples in our situation willing to risk a move to sheltered housing now so wont be freeing up social housing any time soon!

another warning from two years ago

speye.wordpress.com/2017/03/15/universal-credit-means-the-pensioner-bedroom-tax-and-24-billion-added-welfare-cost/

Paul Lewis
‏ @paullewismoney
Feb 28

"Government will take £68.35 a week from up to 12,000 pensioners who have an adult dependant such as a spouse under 65. The Adult Dependency Increase is a non-means-tested addition to the old state pension and had to be claimed before 6 April 2010. It will stop from 6 April 2020"

welfareweekly.com/majority-of-people-facing-7k-pension-credit-cut-are-disabled-figures-show/

"Majority of people facing £7k pension credit cut are disabled, figures show
UK Government urged to reverse planned cuts to pension credit

The SNP has demanded the Tories reverse cuts to pension credit after it was revealed that a majority of claimants are disabled.

Figures show that more than half (56%) of those who receive pension credits also claim a disability benefit.

Currently, couples are able to claim pension credit if one of the partners is over the state retirement age of 65.

However, new changes – snuck out by Tory ministers on the eve of Theresa May’s humiliating Brexit deal defeat – will remove that provision, instead forcing claimants onto Universal Credit

According to Age UK, mixed-age couples could be left over £7,000 worse off per year when the changes come into effect in May.

The UN has previously warned that austerity policies introduced into welfare and social care by the UK government amount to “systematic violations” of the rights of people with disabilities.

Commenting, SNP MSP Alasdair Allan said: “This change to pension credit is bad news for everyone affected – but it is deeply concerning that this could disproportionately hit the disabled. No wonder the Tories tried to sneak the news out.

“For the UK Government to penalise people simply for having a younger partner is completely unacceptable.

“Pensioners, disabled people, and people on low-incomes should not be forced to pay the price for the Tories’ cuts to welfare.

“If they intend to proceed with these cuts, vulnerable people need assurances over how they will be supported when their incomes are slashed by this policy."

welfareweekly.com/pension-credit-changes-could-cost-pensioners-other-benefits-charity-warns/

"Pension Credit changes could cost pensioners other benefits, charity warns
Those affected by the £7k cut could also lose access to other benefits.

Low-income pensioners hit by cuts to Pension Credit could also lose access to other benefits, such as cold-weather payments, MSPs have been warned.

From 15 May, mixed-age couples – where one person is of state pension age and the other is younger – will no longer be able to claim Pension Credit, costing couples up to £140 per week, or £7,000 per year.

Age Scotland has told a Holyrood committee that Pension Credit is a “passporting benefit,” meaning that some couples who face losing out may not be able to claim other forms of assistance such as cold-weather payments, housing benefit, and Council Tax Reduction.

This stark warning comes after it revealed that a majority (56%) of Pension Credit claimants are disabled.

Age Scotland also warned that those who have been hit by changes to the state pension age (WASPI) will also be negatively affected by these changes to Pension Credit, which are “likely to have a greater impact on women.”

Commenting, Alasdair Allan MSP said: “The impact of this Tory cut – which was conveniently sneaked out the back door on the evening of an important Brexit vote – is truly shocking.

“This cut is going to hit pensioners in need, a majority of whom are disabled – and it is staggering the knock-on impact could also see them lose access to cold-weather payments and other benefits.

“Evidence of Westminster’s failure on welfare grows every day. The Tories can’t keep sweeping the harmful effects of their welfare cuts under the rug.

“The UK Government must urgently reverse this attack on low-income pensioners.”

This change will cause a lot of anxiety for people who care for others.

One point I wanted to make clear: If you are in receipt of State Pension you can't get Carers Allowance due to the overlapping benefits rule, but you can still be eligible for Carers Allowance and have what is known as underlying entitlement.

If you have underlying entitlement, that is, you satisfy the criteria for Carers Allowance, but are prevented from receiving it because of your income or receiving another benefit, you need to claim it anyway and allow the Carers Allowance unit to deny your claim. Then, you tell Pension Credit/UC that you have underlying entitlement to Carers Allowance and they will give you a Premium of about £34 per week.

Thats handy for ppl to know Lougle Thanks for posting it.

Leaving the country for 5 weeks doesn't necessarily make you well off. My parents are both of pension age. We have family abroad. If they go to visit, which they rarely can due to health, all they would need would be budget flights as there are relatives to accommodate them. It's literally cheaper than a week in a caravan at Skeggy! People's lives vary so much it's very difficult to have a one size fits all approach.

This will affect us quite a bit as I am mid 50’s and disabled with full PIP (at the moment, who can tell for the future 🙄). My husband is mid 40’s and works full time and is my carer. I also have three school age kids, one of which is disabled and needs a lot of care as well.

Pension Credit Changes Debate.

@Lougle

www.theguardian.com/uk-news/2019/may/09/woman-81-killed-herself-after-pension-was-frozen-in-error?CMP=share_btn_tw

inews.co.uk/news/pension-credit-changes-dwp-age-uk-reform-date/

inews.co.uk/opinion/pension-credit-changes-government-dwp-keep-changes-quiet/

I think it make sense. Two people are a household and both their circumstances should be taken into account. Especially now the pension age has been raised.

Well im very patient Im willing to wait until the consequences become more obvious to the more hard of thinking and then i will say i told you so.