Thousands of elderly people and their partners are at risk of being pushed into poverty by a major change to benefits for pensioners, campaigners have warned.
From today, pensioners who have partners of working age will be barred from applying for pension credit until their partner reaches state pension age.
Instead, they will be they will be forced to apply for Universal Credit – a change that will see many couples lose out on £7,320 in benefits each year.
Couples with the most significant age gaps face the biggest hit to their finances.
According to Age UK, 31% of people in a relationship have an age gap of five years of more, meaning thousands of pensioners will lose out on upwards of £35,000 waiting for their partners to reach state pension age.
One man told the charity he and his wife might have to split up thanks to the policy “as we’d be better off single”.
At the moment, 70-year-old Martin• – who suffers from lung cancer – is retired, while his 50-something wife works in a care home.
However, he is worried that they will be left in financial ruin if his wife is no longer able to work because of her health and they are forced to apply for Universal Credit rather than pension credit.
“I have looked into Universal Credit in case she has to stop after these changes,” he said. “I think we would find it really hard to afford any quality of life. We’d have to give up the car, the internet and landline, meaning we wouldn’t be able to see any of our family anymore or contact our grandchildren in Australia.
“It’s depressing to think about what our lives would be like. We might have to split up as we’d be better off single. How crazy that the government would force us to make that decision.”
Caroline Abrahams, charity director of Age UK, said the organisation was in “no doubt” that “many unsuspecting pensioners will face a heavy financial penalty for having a younger partner”.
Meanwhile Anna Stevenson – a welfare benefits specialist at poverty charity Turn2us – said: “The changes being made to pension credit risk pushing thousands of couples into poverty.
“We know pension credit is a lifeline for older people stuck on low incomes in retirement. The mixed-aged couples who are about to lose up to £7,000 a year due to these changes may quickly find themselves in debt, hungry or homeless as a result.”
Both charities are calling on the government to reverse the decision, which was made in 2012.
While the move will not affect mixed-age couples who already receive pension credit, the government estimates that by 2023/24, 60,000 pensioners and their young partners will have been affected by the policy change.
A spokesperson for the Department of Work and Pensions said that from May 15, only pensioners would be able to claim pension credit.
“If one partner is of working age we believe it’s fair that the same incentives to work and save for retirement apply as they do for other people of the same age,” they said.
“We have updated online guidance and written to all eligible mixed age couples to make them aware of the changes, which won’t affect them unless their circumstances change.”