Reaching state pension age typically unlocks access to crucial Department for Work and Pensions (DWP) support, including Pension Credit, Attendance Allowance, and Pension Age Disability Payment. However, a significant loophole exists for mixed-age couples where one partner is over the state pension age while the other remains younger than 66. This demographic faces potential ineligibility for these pension-age benefits, compelling them to rely instead on working-age benefits such as Universal Credit.
The Complexities of Mixed-Age Couples and Benefit Eligibility
For couples with an age disparity, the benefits system becomes notably complicated. When one individual surpasses the state pension age but their partner has not yet reached 66, they are classified as a mixed-age couple. This classification directly impacts benefit calculations, as partners are included in assessments for both Pension Credit and Universal Credit. Consequently, the older partner may find themselves unable to claim their entitled pension-age benefits, necessitating a shift to working-age alternatives.
Government Rationale and Parliamentary Response
Green Party MP Siân Berry recently questioned the DWP regarding estimates of individuals pushed into poverty due to these rules affecting mixed-age couples until the youngest partner attains state pension age. While no specific estimate was provided, Sir Stephen Timms of the DWP offered a parliamentary explanation. He emphasised that the rule aims to assist the younger partner by integrating them into the working-age social security system.
Sir Stephen Timms stated: "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. The requirement for mixed age couples to seek financial support from the working-age social security system until both members of the couple reach State Pension Age ensures that, once in receipt of Universal Credit, the younger partner can access the same employment support that is available for customers below State Pension Age including dedicated employment support for customers over the age of 50. The pension-age partner is placed in the no-work related requirements group."
Historical Changes and Current Implications
The regulations governing mixed-age couples underwent a substantial transformation in May 2019. Prior to this change, such couples could opt for the more generous pension-age benefits like Pension Credit or pension-age Housing Benefit once one partner reached state pension age. However, post-May 2019, this flexibility was eliminated. Now, both partners must claim Universal Credit exclusively until they both achieve the state pension age.
According to EntitledTo, a benefits advisory service: "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 profound implications, as Universal Credit typically ceases at state pension age, creating a potential gap in support for the older partner during the interim period.
Exceptions and Broader Context
Not all DWP payments are affected by having a younger partner. For instance, state pension payments remain independent of a partner's age, providing a consistent income stream regardless of the couple's age dynamic. Additionally, other benefits may not be impacted, but the core pension-age supports like Pension Credit are directly influenced by these rules.
Currently, the state pension age stands at 66, but it is scheduled to increase to 67 over the next two years. Individuals born between April 6, 1960, and March 5, 1961, will be directly affected by this gradual phase-in. Everyone born after these dates will have a state pension age of 67, with further increases anticipated to 68 around 2044, potentially exacerbating challenges for mixed-age couples in the future.
Age UK highlights that while the older partner in these couples faces restrictions on pension-age benefits, they are considered to have 'no-work related requirements' under Universal Credit. This designation offers some relief but does not fully compensate for the loss of more substantial pension-age supports. The ongoing debate underscores the need for balanced policies that protect vulnerable pensioners while supporting younger partners' employment prospects.
