PC Changes 2013- couples with younger partner

This change is due to come into effect in April 2013
If in a couple there is a younger partner then both partners must wait until they have both reached the qualifing age for Pension Credit
There is a disproportional amount of “extra years” a person of Pensionable Age will have to serve until the pension age between men and women have equalised.
Example
If the Pension age is at 66 years for both men and women –Older person 66 years old with partner person 3 years younger – older person must wait until they reach 69 – waiting time 3 years.
Equal to the difference in age between the ages of the couple
BUT
At the moment Pensionable Age is rising to equalise both men and women at 66 by 2018. This creates in the above case an additional 4 ¼ years waiting period
Difference between ages 3 years – extra years to Pension Qualifying Age 7 ¼ years.

Both partners will be classed as “Working Age” within UC and the partner who has reached the qualifing age for PC will lose any pension related benefits
At the moment Capital limits are different for the Working Age claimants and PC claimants.
At the moment it is unknown how conditionality and sanctions will effect the older partner
If this comes into force April 2013,  anyone over pensionable age who wishes to work (on low income) will be eligable for WTC and will therefore have conditionality under both systems - WTC and UC
If you have any clients please encourage them to contact their MP’s as very few of them have any knowledge of this change.

due to the changes in legilslation of uc age of a couple say one of the couple were 2-3 years younger. shouldnt the apllicable amount be of a mixed amount 142.70 personal allowance person under pension credit age 71.00 total ..... 213.70 mixed benefit calculation

No. They will only be entitled to UC.

Although there is protection from under occupation for couples where one is not at State Pension age from April 2013, there may be no protection from this when new claims from October 2013, and this will add to the older partner who is at pension age not accessing the higher benefit levels associated with age/health needs.  Advisors need to ensure that those who are currently claiming via PC do not have a change in circumstances such as the younger member taking up a job and then reclaiming as it will not be via PC when UC comes in.  We also need to be mindful of state pension age move to 66, so todays pension age via PC of 61 will increase every 2/3months affecting even more.

I am still trying to get my head around this and just want to have the extent confirmed :

Scenario : Husband is aged 67 already receives his RP of some £117.00 as he got a bit of SERPS , he is not very well but still struggles to work as self employed in various building sites subcontracts. There are none or maybe a very small private pension that has not yet been cashed in but it will be minimal.(I know he should make a claim for Working Tax credit but the work is very erratic hours wise )
Luckily there is no mortgage left

His wife is 58 and presently she does not receive any benefit as she lost ESA from not turning up to a board some months ago and there is also a lapsed DLA claim, but say she may not re-qualify as it is variable mental health

So, where some years ago he could have had non means tested adult dependant addition to his RP but that is well and truly gone
If he now does not claim Pension Credit before April and he has to give up work , the couple’s income will have to be that £117.00 RP which really by law was meant to be the income for a Single Pensioner

I suppose this is right ?

We don’t know whether the cut-off date will be April 2013 or not - rumour, rumour, rumour.

After that date she will have to claim ESA or JSA if they want support.

He might be able to claim WTC now as well as PC.  When UC is in operation he wouldn’t be able to claim UC for in-work support if in receipt of PC.  That’s a possible win for mixed-age couples as they may be able to get UC with his earnings included - and a higher earnings disregard than they’d get on PC.

His private pension, if it’s past the normal date of receipt, may be notional income for both benefits.

The points from the first posting here were bought up with Neil Couling at CAB conference - his response was the Government is expecting pensioners to work more - I post no comment on this due to the posting could be removed - waiting to see what the SSAC has to recommend