Approximately 11,000 pensioners will see their state pension decline by up to £70 a week following benefit changes introduced a decade ago. Those affected currently receive the “adult dependants’ addition”, which was once payable to hundreds of thousands of pensioners with spouses under the state pension age, but financially dependent on the state pension recipient.
The benefit, known as Adult Dependency Increase (ADI), was abolished for anyone claiming their pension from April 2010 onwards. However, pensioners receiving the cash prior to that date were promised it would be payable for ten further years. The nature of the benefit, only payable to couples where one partner is below state-pension age, means relatively few people still receive it.
However, a Freedom of Information request that was made by insurer Royal London has revealed that 11,000 pensioners will be affected by the complete abolition of ADI in April. The upshot is that some of these pensioners will lose more than £3,500 of annual income.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Department for Work and Pensions has confirmed the change will go ahead as planned, although it says that some couples may be able to recoup their losses by claiming means-tested benefits.
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
-
What is the S&P 500?The S&P 500 is one of the world’s most popular stock market indices and has almost tripled in value over the last decade. But what is the S&P 500, and which companies does it contain?
