Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the effect on the level of pensioner poverty of the Welfare Reform Act 2012 (Commencement No. 31 and Savings and Transitional Provisions and Commencement No. 21 and 23 and Transitional and Transitory Provisions (Amendment)) Order 2019.

The Government is committed to action that helps to alleviate levels of pensioner poverty. The absolute poverty rate for pensioners has fallen to record lows. The number of pensioners in absolute poverty before housing costs has fallen by 200,000 since 2010. In the early 1970s roughly 40% of pensioners were in poverty. Relative poverty after housing costs is now down to 16% - one of the lowest rates since comparable records began.

This change in the way support is provided to couples where one partner is below State Pension age will ensure that the same incentives to work and save for retirement apply to the younger partner as apply to other people of the same age. Unlike Pension Credit, which in most cases allows couple to retain only £10 a week of earned income, Universal Credit provides clear incentives for people to find and progress in work.

The change to the Pension Credit rules was legislated for in the Welfare Reform Act 2012. As part of the Parliamentary process, an Equality Impact Assessment was published in November 2011, which included an assessment of the impacts of Universal Credit reforms on older couples, including mixed age couples. This can be found at:

https://www.gov.uk/government/publications/universal-credit-equality-impact-assessment

The change does not affect either partner’s entitlement to a State Pension. And it will not affect mixed age couples who are receiving Pension Credit and/or pensioner Housing Benefit immediately before the implementation date, unless their entitlement to both those benefits ends and they subsequently need to re-enter the system of support through means-tested benefits before the younger partner reaches State Pension age.