Government accused of ‘penny-pinching’ over 2020 state pension reductions

11,000 people are set to face a large cut in their state pension in April 2020.

Related topics:  Later Life
Rozi Jones
6th January 2020
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"Under the old state pension system, people claiming a retirement pension could get a significant extra amount for a spouse who was financially dependent upon them."

A new Freedom of Information response to former pensions minister Steve Webb revealed that the total amount lost will be around £33m, with individuals losing up to £70 per week.

The change involves the final abolition of state pension additions for ‘adult dependents’ – typically spouses under state pension age who are financially dependent on the pension recipient. Under the 2007 Pensions Act these additions were abolished for new claims from 2010 onwards, but anyone already in receipt by April 2010 was allowed to continue to receive the addition for as long as they were entitled. That transitional arrangement comes to an end in April 2020.

Steve Webb, policy director at Royal London, said: "Under the old state pension system, people claiming a retirement pension could get a significant extra amount for a spouse who was financially dependent upon them. Although that addition was abolished for new claims in 2010, many people already in the system have continued to benefit.

"It will come as a nasty shock to thousands of people to see their state pension cut by up to £70 per week. It seems penny-pinching of the government to take this money away when the addition is gradually working its way out of the system in any case. Losing over £3,500 per year over night will make a material difference to the standard of living of those who are affected."

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