Pension credit problems: should mixed-age couples rule be scrapped?

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Hundreds of thousands of couples on low incomes could be unfairly missing out on extra financial support via Pension Credit due to the government’s controversial mixed-age couples rule.

The mixed-age couples rule was introduced in 2019 and prevents people of state pension age from claiming Pension Credit if their spouse is below age 66.

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Joanna Elson, chief executive of Independent Age, said: “The mixed-age couples rule is unfair and must end. It is wrong that older people on a low-income with younger partners are locked out of vital financial support, forcing them to wait years for entitlements like Pension Credit. Independent Age supports couples where the younger partner is in low-paid employment or unable to work due to health conditions, or due to caring for their older partner. This rule risks pushing more older people into deep financial hardship.

“Who you fall in love with and choose to spend your later years with should not determine how much financial support you receive. Far too many older couples are forced to live on tiny incomes because of this rule. It’s time for the government to reverse it.”

To mark Valentine’s Day and highlight its campaign to change the mixed-age rule, Independent Age will be sending Valentine’s Day cards to all 650 MPs, urging them to reverse the policy.

What is the mixed-age couples rule?

The mixed-age couples rule was introduced by the Tory government on 15 May 2019 to simplify Pension Credit.

The argument was that Pension Credit is intended to provide long-term support for pensioner households who are no longer economically active because of their age.

Previously, mixed-age couples, where one is of state pension age and the other is below the threshold, could choose to claim a working age benefit or pension age benefits if they were on a low income

But under provisions enacted in the Welfare Reform Act 2012, couples can now only access pension age income-related benefits when both partners have reached the qualifying age.

The changes affect anyone accessing the benefit since 15 May 2019.

Is the mixed-age couples rule unfair?

Critics say the mixed-age couples rule is unfair as it means someone on a low income has to apply for universal credit which is lower than pension credit.

Independent Age highlights government figures showing that, on average, affected couples could be losing around £5,900 a year, with some losing as much as £7,000.

Data from 2019 also shows 12% of couples who could be eligible for Pension Credit have an age gap of more than 10 years, meaning the older partner may have to wait until their late 70s to access pensioner entitlements.

This policy is creating issues for pensioners on lower incomes.

Independent Age said it received a call from a 79-year-old who was unable to claim pension credit because their partner is 59. Under the mixed-age couples rule, they will have to wait until they are 87 before they can access the financial support.

Elson added: “The government has created a flawed system where two people of the same age can be treated completely differently just because one has a younger partner.”

In another case, Andy Cressey from Goole, Yorkshire, said: "My partner June who is three years younger than me will be affected when I get to the retirement age of 67 in 2028, a little over two years time. From the information I have been able to find June will have to claim universal credit and my state pension will be taken into account with a pound for pound reduction in the amount she can claim. This effectively means we will both have to live off my state pension.

“I have also found out that if we live apart the council will pay my full rent and council tax as I will be a pensioner and my partner would have a full claim in with universal credit. So we will be better off if we do not live together, which is silly. We would not be able to afford to live together if that is the case. Why should I have to pay rent and council tax when I live with my younger partner, and she will have very little, if any, income herself? The system is bonkers to say the least."

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.