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Thousands of pensioners are set to miss out on crucial means-tested benefits this winter due to rules affecting those with younger partners.
This comes as many retirees are already struggling financially, worsened by the recent cut to the Winter Fuel Payment eligibility, a decision by the Government to address a major budget shortfall.
The cuts to the Winter Fuel Payment, a lifeline for many pensioners, mean that around 10 million retirees will lose out on payments worth up to £300 this winter. The benefit will now only be available to those who qualify for Pension Credit or other means-tested benefits.
However, pensioners with younger partners are ineligible for Pension Credit, meaning thousands may go without this vital support as they won’t be able to claim.
Under rules introduced in 2019, mixed-age couples—where one partner is of working age and the other has reached state pension age—no longer qualify for Pension Credit until both partners are old enough.
As a result, an estimated 60,000 couples are currently unable to claim this benefit, which is worth an average of £3,900 per year. This winter, these couples will also miss out on the Winter Fuel Payment, adding to their financial burden.
Kate Smith of Aegon highlighted the severity of the situation. She said: “This is a rather unfortunate ‘cliff edge’ of the rules which could leave thousands of ‘mixed age’ couples out in the cold this winter.”
Sir Steve Webb, former pensions minister, also expressed concern, noting that while some low-income couples may still qualify for Universal Credit (UC) and retain their Winter Fuel Payment, the income threshold for UC is very low, leaving many without any support.
The Government has defended the cuts, with Commons leader Lucy Powell stating that the decision was necessary to prevent a potential economic crisis.
She argued that failure to act could have led to a “run on the pound” and a severe impact on living standards, particularly for the poorest, including pensioners.
The Government has instead decided to extend the local authorities’ Household Support Fund to cover winter and ensure the pensioners who need help with bills may be able to get some.
Charities have argued that, while this marks a “positive” step, it won’t undo the potential damage that narrowing the Winter Fuel Payment criteria may cause.
Morgan Vine, head of policy and influencing at Independent Age said: “Currently, there are up to 1.2 million eligible older people missing out on the Pension Credit they’re entitled to. We are also concerned about the large group of older people who are just above the Pension Credit eligibility threshold. Many tell us they don’t have enough money to live on, but will still have their income cut at an already challenging time of year with energy prices on the rise.”
Ms Vine added: “We are ready to work with the UK Government to help identify solutions and reach older people living in poverty. Nobody in later life that needs financial support should be left behind.”