DWP Rule Change Denies State Pension Payments to Mixed-Age Couples
The Department for Work and Pensions (DWP) is set to deny state pension payments to some individuals over the state pension age due to a specific rule quirk. This issue primarily affects mixed-age couples, where one partner is over the state pension age while the other has not yet reached 66.
Impact on Mixed-Age Couples
Under current DWP regulations, Pension Credit and Universal Credit calculations include both partners in a couple. For those over the state pension age, this typically means they cannot claim pension-age benefits and must instead rely on working-age benefits like Universal Credit. According to Age UK, these individuals will be placed in a "no-work related requirements" group, limiting their access to certain supports.
Political and Expert Insights
Labour Party MP and cabinet member Sir Stephen Timms commented on the situation, stating, "Ensuring that individuals can get into, progress and stay in work is important in helping them to continue saving for their own retirement and contribute to the wider economy." He added that requiring mixed-age couples to seek financial support from the working-age social security system until both reach State Pension Age allows the younger partner to access employment support, including dedicated programs for those over 50.
EntitledTo, a benefits advice organization, notes, "Before this change, a mixed age couple could be eligible to claim the more generous pension age benefits when just one of them reached pension age." This shift has removed that option, forcing both partners to claim Universal Credit exclusively until they both attain the state pension age.
Current State Pension Age and Rules
The state pension age is currently set at 66 for both men and women. Since the rule change, mixed-age couples are no longer able to choose between claiming Universal Credit, Pension Credit, or pension-age Housing Benefit. This has significant implications for their financial planning and support systems, as they must navigate the working-age benefit framework until eligibility aligns.
This development highlights ongoing challenges in the social security system, particularly for older adults in mixed-age relationships. It underscores the need for clear communication and support to help affected couples understand and adapt to these changes.
