Mixed-age couples

Will the ability for mixed-age couples to make a new claim for Pension Credit cease as the UC digital service is rolled out area by area? Or will it happen nationwide at some later date?

We heard from DWP OSEF contacts that rules requiring mixed-age couples to claim UC rather than PC are to be implemented as part of the Full Digital Service roll-out from May 2016 onwards.

That’s interesting, Paul.  Years ago, when WRA 2012 was new, ministers in the last government said that mixed-age couples already on PC would be transitionally protected - presumably this government will honour that at least?

Did they have any clues about what would happen in the existing digital areas?

I wonder if they’ll bother moving the HB pension-age/working-age boundary at the same time (and whether DCLG/Wales Gov/Scot Gov will follow suit for CTR)?

Thinking aloud, a mixed age couple who wouldn’t have qualified for PC but would qualify for HB, once Digital UC is rolled out to an area, would be prevented from making a new claim to HB because the UC rules would mean HB is abolished for them?

SarahJBatty - 22 March 2016 07:50 AM

Thinking aloud, a mixed age couple who wouldn’t have qualified for PC but would qualify for HB, once Digital UC is rolled out to an area, would be prevented from making a new claim to HB because the UC rules would mean HB is abolished for them?

I think that would usually be the true (which is why I was wondering if they’d bother)  but there’ll be a few cases ( e.g specified accommodation and maybe some ‘too hard’ cases)  who’d still get HB - and if mixed-age with no UC entitlement then that would be pension-age HB unless the HB regs are changed. 

The mixed-age rule change has been ‘just about to happen’ before so it will be interesting to see what happens.

Jon Blackwell - 21 March 2016 08:39 PM

That’s interesting, Paul.  Years ago, when WRA 2012 was new, ministers in the last government said that mixed-age couples already on PC would be transitionally protected - presumably this government will honour that at least?

Did they have any clues about what would happen in the existing digital areas?

I wonder if they’ll bother moving the HB pension-age/working-age boundary at the same time (and whether DCLG/Wales Gov/Scot Gov will follow suit for CTR)?

Sorry if I wasn’t clear Jon. It’s certainly our understanding that couples already on PC won’t be affected, only those in Full Digital areas who make new claims post-May 2016. At least I hope that’s the case.

Thanks, Paul. I didn’t really think they wouldn’t transitionally protect (although with this lot you never know) - there are various ways TP could be implemented - some more sensible than others - hopefully more detail will be available soon.

It’s all looking rather confusing isn’t it?

The first mixed-age couple (MAC) rules, in force, come in on the 6th April under the The State Pension Credit (Amendment) Regulations 2015 (2015 N0. 1529) which also give the termination dates of AIPs.

For MACs who haven’t been receiving Savings Pension Credit (SPC) before 6th April, and remained entitled at all times since, there will be no entitlement to SPC.  This follows section 3 of the State Pension Credit Act 2002 and the logic, if there is any, presumably follows the fact that the younger partner will receive New State Pension (nSP) at the potentially higher rate.  For existing claims this must be considered transitional protection, I suppose.

Even though SPC is reducing in value year on year, it does mean that there are still a couple of weeks to get protecting claims in. 

The situation, if Paul is correct, from May would mean that this provision is irrelevant in digital areas unless you can find a case where GPC is in payment and SPC isn’t, even though it should be.

It’s probably useful ( just to try and prevent yet further confusion) to explain :-

I use the term mixed-age couple (and it’s very widely used this way) to mean a couple where one member has reached qualifying age for state pension credit (QAFSPC) and the other hasn’t.  These are the couples who will be barred from claiming state pension credit when/if para 64 of Schedule 2 to WRA 2012 takes effect. 

The State Pension Credit (Amendment) Regs 2015 [relating to the changes to savings credit and AIPs ] use ‘mixed-age couple’ in a different sense ( s 3ZA State Pension Credit Act 2002 by Pension Act 2014):-

” “mixed-age couple” means a couple (whenever formed) one member of which had attained pensionable age before 6 April 2016 and the other had not “

So they mean a couple where one member has reached pensionable age and that’s not necessarily the same as QAFSPC and the other hasn’t ( and it’s also tied the term to the specific date - 6 April 2016) - so that’s a different meaning and it’s quite unhelpful that DWP decided to use the term in this way.

[ Also, of course, when Gareth says SPC - you need to remember that he means PC(Savings) and not (State)PC   : )  ]

Thanks Jon; I’m making too many assumptions about my posts.

SPC isn’t available unless the older member of a MAC has reached 65, which is the general age for entitlement.  Single people reaching 65 after April 6th won’t qualify for SPC in any event, if they’re men, because they’ll be getting nSP which disqualifies them.  Single women reaching 65 after April 6th may qualify during the next 2 years as they may be receiving old-style state pension (SRP) which doesn’t disqualify them from SPC.  Simples!

‘Pensionable age’ is replacing ‘65’ in many bits of legislation in preparation for the increase in age from 2018, for men and women, which is due to reach 66, 67 and so on over the next decades.

While I agree with Jon that the term MAC can have different meanings, it does at least alert people to there being some effect because of age difference.

Jo Raine - 21 March 2016 05:54 PM

Will the ability for mixed-age couples to make a new claim for Pension Credit cease as the UC digital service is rolled out area by area? Or will it happen nationwide at some later date?

See also

http://www.rightsnet.org.uk/forums/viewreply/43249/

Gareth Morgan - 22 March 2016 01:30 PM

...
SPC isn’t available unless the older member of a MAC has reached 65, which is the general age for entitlement.  Single people reaching 65 after April 6th won’t qualify for SPC in any event, if they’re men, because they’ll be getting nSP which disqualifies them.  Single women reaching 65 after April 6th may qualify during the next 2 years as they may be receiving old-style state pension (SRP) which doesn’t disqualify them from SPC.  Simples! ...

Gareth, that’s interesting - are you saying that there’s an explicit rule disqualifying new state pension recipients from receiving savings credit ?  ( I can see there’ll be no single claimants getting both at the same time because of the way savings credit is restricted - but I’ve not spotted a stand alone rule for this - so far, at least.)

I think there could be a few transitionally protected mixed-age couples who could get savings credit and new state pension at the same time (when the younger partner reaches pensionable age at some date after 5/4/16)  - and in those rare cases new state pension would be qualifying income for savings credit, wouldn’t it?
( It’s very likely that the income from new state pension would extinguish the savings credit anyway unless there’s a conveniently timed drop in other qualifying income so I think it would be quite unusual to see.)