Will Universal Credit affect retirees? New pension credit rules for state pension | Personal Finances | Finance

Universal credit is a payment that can be made to help cover your living expenses. You may be able to claim it if you have a low income or do not have a job. For those who have reached state retirement age, different types of benefits, such as state pension and retirement credit, may be available. So, will universal credit affect retirees?

Universal credit has not replaced state pension payments.

For some couples, one may claim Universal Credit, while his partner claims State Pension.

This is due to a change in the rules for pension credit for mixed-age couples, which went into effect last month.

The pension credit is an income-linked benefit – consisting of a guarantee credit and a savings credit.

The former supplements your weekly income if it is less than £ 167.25 for a single person or £ 255.25 for a couple.

A savings loan is an additional payment that is made to people who have saved money for retirement, such as a pension.

You pay no tax on the pension credit.

Before May 15, 2019, couples in which someone had reached the legal retirement age had also both reached the required age.

As their partner had passed the eligibility age, a younger member of the relationship was included in the pension credit claim. This has since been changed.

The Citizens’ Councils explain that if you get the secured portion of the loan (which supplements the income of qualifying couples at £ 255.25 per week) then you will receive a full council tax reduction – a scheme sometimes referred to as council tax assistance.

However, since May 15, 2019, the rules have changed and it is now the youngest member of the couple who would determine whether they have reached the age of eligibility for the pension credit.

If you don’t already get a pension credit, you can request to have your request backdated to May 14 or earlier, but you will need to apply by August 13, 2019.

If mixed-age couples, such as one who is at or over retirement age, and one who is not, would otherwise be eligible for the pension credit, they may need to apply instead universal credit.

The standard allowance for Universal Credit for couples with at least one person aged 25 or over is £ 498.89 per month.

Some people will be entitled to additional amounts in addition to the standard allowance.

You may be able to get a council tax reduction from your town hall, and if your Universal Credit payment is not enough to pay your rent, it may be possible to get discretionary housing payments.

READ MORE: Is universal credit paid in arrears? Universal Credit UK Payments Explained