State Pension: Pension Credit and Universal Credit – the amount you get could be reduced by £7,000

What is the state pension? The new state pension is requested by a man born on or after 6 April 1951 or a woman born on or after 6 April 1953. If you were born before this date, you will have to apply for the basic state pension. You need 10 years of qualification on your national insurance record to get a state pension.

The total amount you can get on state pension is £164.35 a week.

What is the pension credit?

Pension Credit is a benefit, created in 2003 by Labor Prime Minister Gordon Brown.

This is a benefit created to help pensioners in a situation of poverty.

It is divided into two parts. The government explains: “The collateral credit tops up your weekly income if it is less than £163 (for singles) or £248.80 (for couples).

“Credit d’Epargne is an additional payment for people who have saved money for their retirement, for example a pension.”

What is Universal Credit?

Universal Credit is a benefit that helps Britons in need with living expenses.

This is a relatively new scheme, which will replace, among other things, the child tax credit, housing allowance and income support.

How much Brits can get on Universal Credit depends on their circumstances. If you are in a relationship and one of you is aged 25 or over, you can claim a standard monthly allowance of £498.89 for both of you.

How the rules for State Pension Credit and Universal Credit are changing

In a ‘sneaky’ change to pension age rules, many mixed couples will have £7,000 a year off as they are forced to claim Universal Credit instead of the state pension credit.

How will the reduction in benefits, which was implemented in January 2018, make people worse off?

Before the 2018 cuts, couples could claim up to £13,273 a year with the pension credit.

However, the new rules mean they will instead have to apply for Universal Credit and only receive £5,986 a year.

The change will be implemented from May 15, 2019.

Caroline Abrahams, charity director at Age UK, said the change could leave ‘some of the poorest pensioners paying a high price for having a younger partner’ and even in the ‘absurd position’ of being financially better off living separately.