‘We’ve been married for 27 years, but Pension Credit reforms mean we now have to consider divorce’ The DWP’s Pension Credit reform means mixed-age couples could be stopped from claiming the benefit and forced onto Universal Credit instead

A couple who fear they will be impacted by the Government’s benefit reform for pensioners with younger partners have said they will consider divorcing if it causes them financial hardship.

Richard and Julie Lee have a 10-year age gap between them and by the time Richard reaches state pension age, so-called mixed-age couples like them will be prevented from claiming Pension Credit. But the changes being rolled out by the Department for Work and Pensions (DWP) means they will instead be forced to claim Universal Credit, leaving them hundreds of pounds worse off each month.

The reform means that Pension Credit, a benefit that tops up people’s state pension, will only be available for couples where both partners are of pension age. Campaigners have warned the reform could make pensioners with younger partners reconsider their living situation.

The i newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription.

‘Utterly heartbreaking’ situation

Charity Age UK called the Lees’ situation “utterly heartbreaking” and urged the Government to rethink the reform, adding that it ended up punishing pensioners for having a younger partner.

Earlier in January the Department for Work and Pensions quietly announced that the Pension Credit change for mixed-age couples, where one person is of state pension age and one is of working age, will be implemented from 15 May 2019.

As Universal Credit is worth less than Pension Credit, couples like Richard and Julie could be left worse off by as much £7,000 a year simply because of their age gap, although the exact amount will depend on their individual circumstances.

The change will not affect any mixed-age couples already claiming Pension Credit before 15 May. These couples will continue to be entitled to the benefit as long as there has been no change or break to their claim. And mixed-age couples will still be able to claim Pension Credit if one person is of pension age and also claiming housing benefit when the rules change.

10-year age gap

The Lees, who have been married for 27 years, said they had hoped they would qualify for Pension Credit next year but now realise their age gap might mean they lose out.

Both are medically retired due to disabilities and help each other to get by day-to-day. Julie, 54, is 64-year-old Richard’s carer. They said they had been getting by on their current benefits, receiving help from family members to cover any shortfalls.

The couple, who live in Welwyn Garden City, Hertfordshire, hoped they would get some financial relief when Richard begins receiving his pension in January 2020. But knowing they might have to claim Universal Credit rather than Pension Credit means they are considering drastic measures, such as splitting up, just to get by.

“We’ve muddled by with the help of family on the level of benefits we’re getting at the moment,” Richard told i. “I’ve been looking forward to the fact there might have been a slight easing of the pressure on us once I did retire but now on the face of it, it looks as if it’s going to get considerably worse. I don’t think that is right at all.”

Divorce now a serious consideration

Richard said he “100 per cent” felt like he was being punished for having a younger partner.

“I didn’t realise when I married Julie that I had to marry someone exactly my age. You fall in love with who you fall in love with. The fact that my wife was 10 years younger is unfortunate. It’s not something that was planned.

“I explained to my wife the other day, how do we feel about separating or getting a divorce? That’s how serious the issue is. That’s going to cause the Government more problems because they have a duty of care to both my wife and myself so that’s two lots of accommodation they’re going to have to make available.

“It’s something that’s going to have to be seriously considered.”

He said the Government had not thought through the implications of the reform, which had left him feeling “concerned and very disappointed”.

“In fact I’m disappointed about so many things this Government has done to the less well off in society – not just pensioners.”

‘The likes of us are getting poorer’

Julie added: “The likes of us are getting poorer. It’s disgusting.”

She said she was dreading what the future held regarding their financial situation. “We’ve been together for 27 years. If we have to separate just to pay the bills then that is wrong. We shouldn’t, after 27 years, even think about divorcing or splitting up.”

Julie pointed out that couples who split up over the reform could end up costing the Government.

“I need Richard. I’m disabled. I need Richard to help me and he needs me to help him. If we have to get people in to help us its going to cost them [the Government] a lot more money then keeping us together to look after each other. It’s stupid,” she said.

Richard added: “I just would like all the organisations to get together and try to get this Government to think again. This is going to cause so much hardship,” he added.

‘Absurd position’

Age UK’s charity director Caroline Abrahams said: “It’s utterly heart-breaking to think an older couple may be considering divorce rather than suffer the financial consequences of the Government’s Pension Credit changes.

“By slashing the incomes of those affected by as much as £7,000 a year, the new policy will place many pensioners in the absurd position of being financially better off if they separate from their partner. And many of those that choose not to go down that path face being pushed below the poverty line – this cannot be an intentional move by the Government.

“We are calling on the Department for Work and Pensions to look again at its decision, which threatens to cause heartache as well as financial hardship for all those affected.”

Sally West, Age UK’s policy director, advised mixed-age couples like the Lees to get individual information about their circumstances before making any drastic decision.

“It’s understandable that people are worried but we wouldn’t want people to rush into any hasty decisions. But it is a ridiculous situation that you could be better off on your own.

“The difference of £7,000 is between basic Universal Credit and basic Pension Credit. The actual amount will depend on people’s individual circumstances and their state pension. People should make sure they are fully aware of how it will affect them,” she said, adding that the charity was awaiting more information from the Government about the reform.

“People currently entitled to Pension Credit should check their situation now and put in a claim if you can,” said Ms West.

A DWP spokesperson said:“This change was voted on by Parliament in 2012 and means, for new claims, only pensioners can claim pension credit.

“If a person in the household is of working age we believe it’s fair that they should be in the same circumstances as other people of the same age, regardless of the age of their partner.”

Age UK is urging the public to check their entitlements before the reform. You can contact the charity’s advice line on freephone 0800 169 65 65. Visit the website’s money page or check the benefit calculator here

If you would like to share your story, contact serina.sandhu@inews.co.uk