Around 60,000 pensioners in the UK are unable to access vital financial support due to a Department for Work and Pensions (DWP) rule.
Despite being over the State Pension age and having low incomes, these individuals are excluded from receiving Pension Credit, a benefit that helps supplement their income and unlocks access to additional benefits such as Winter Fuel Payments, Housing Benefit, and free TV licences.
For many pensioners on a low income, Pension Credit is a lifeline, providing them with financial stability and access to services that significantly improve their quality of life.
However, due to a stipulation regarding mixed-age couples, thousands of pensioners are left without this crucial assistance. This article will explain how the rule works and its impact on affected pensioners.
The Mixed-Age Couple Issue
The DWP introduced a regulation in May 2019 that forces mixed-age couples—where one partner is over State Pension age and the other is younger—to claim Universal Credit rather than Pension Credit.
The issue with this rule lies in the fact that Universal Credit is designed for working-age individuals, not pensioners. This mismatch often leaves elderly individuals unable to access the pensioner-specific benefits they would otherwise receive.
This rule prevents around 60,000 pensioners from claiming support like free TV licences, Winter Fuel Payments, and NHS prescription assistance.
Universal Credit also has stricter rules regarding backdating payments, making it difficult for these individuals to receive the financial support they need in full. Advocacy groups like Age UK have been vocal about the struggles these pensioners face, urging the government to reconsider the rule.
Understanding Pension Credit
Pension Credit is a means-tested benefit aimed at raising pensioners’ income to a minimum level. There are two types of Pension Credit, both with different eligibility criteria:
| Type of Pension Credit | Description | Eligibility Criteria |
|---|---|---|
| Guarantee Credit | Ensures a minimum income level (£201.05/week for singles, £306.85/week for couples) | Available to those over State Pension age with low income |
| Savings Credit | Rewards pensioners for having saved for retirement | Available to those who reached State Pension age before April 6, 2016 |
Pension Credit is not automatically provided, meaning eligible pensioners must actively apply to receive it. The amount awarded depends on an individual’s income, savings, and other personal circumstances.
Those who receive Pension Credit also gain access to a wide range of benefits, including free TV licences, discounted Council Tax, and NHS prescriptions.
The Role of Universal Credit
Universal Credit is another means-tested benefit, but it is aimed at working-age individuals and families. It replaced six older benefits and provides a monthly payment to those out of work or with a low income.
It covers living costs, housing expenses, and other specific needs, such as childcare costs and support for carers. The payment adjusts based on income, which helps recipients gradually reduce their dependence on benefits as their earnings increase.
However, for mixed-age couples, Universal Credit does not offer the same level of support as Pension Credit. It lacks the specific benefits tailored to pensioners, such as Winter Fuel Payments and free TV licences, putting many elderly individuals at a disadvantage.
Why Pension Credit Matters
Pension Credit plays a critical role in ensuring that older people do not fall into poverty. By guaranteeing a minimum income level, it helps pensioners meet their basic needs and prevents financial hardship.
For pensioners affected by the mixed-age couple rule, missing out on Pension Credit means losing access to important benefits that improve their quality of life, especially as the cost of living rises.
The table below highlights key differences between Pension Credit and Universal Credit:
| Aspect | Pension Credit | Universal Credit |
|---|---|---|
| Target Group | Pensioners | Working-age individuals and families |
| Mixed-Age Couples Eligibility | Not eligible (Universal Credit required) | Eligible |
| Payment Frequency | Weekly | Monthly |
| Backdating Flexibility | More flexible | Less flexible |
| Additional Benefits Access | Winter Fuel Payments, free TV licence | Limited additional benefits |
The current DWP rule complicates access to Pension Credit for many pensioners, leaving them struggling to secure the support they need.
Revisiting the rule could offer relief to thousands of pensioners who face financial difficulties due to the policy.
For elderly individuals, especially those on low incomes, every bit of financial support matters. Ensuring pensioners can access Pension Credit without unnecessary barriers is essential for their financial security and overall well-being.
FAQs
What is Pension Credit?
It’s a benefit for low-income pensioners to top up their weekly income.
How many people are affected by the mixed-age rule?
About 60,000 pensioners are affected by this rule.
Can mixed-age couples claim Pension Credit?
No, they must claim Universal Credit instead.
What benefits are lost without Pension Credit?
Free TV licences, Winter Fuel Payments, and NHS prescription help.
When was the mixed-age couple rule introduced?
The rule was introduced by DWP in May 2019.
