Thousands of UK retirees are set to lose more than £3,500 a year from their state pension as a result of government cuts.
Extra payments for adult dependents are to be cut from April this year, taking away some £33 million from people’s pensions.
Who is affected?
The ‘adult dependency increase’ (ADI) is typically paid for a partner who is below state pension age, but is financially dependent on someone receiving the basic state pension.
When the government ends the allowance in April, it will mean those who relied on it will see a drop in their pension of up to £70 per week .
The extra payments closed to new applicants in 2010, but those who were already receiving it at the time were permitted to carry on claiming it for as long as they were entitled.
However, all payments are due to stop as of 6 April 2020, regardless of when people started claiming it.
Adult Dependency Increase (ADI) payments are due to stop as of 6 April 2020 (Photo: Shutterstock)
Thousands to lose out
A total of 11,000 retirees are expected to lose a collective £33 million as a result of the cuts, according to a Freedom of Information request by Steve Webb, policy director of insurer Royal London.
Webb told The Mirror: "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.
"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."
A DWP spokesperson added: “The ending of ADIs was part of a package of reforms introduced in 2010, which meant that overall more women received the full basic State Pension and more generous National Insurance credits for carers were introduced.
“After 6 April 2020, current ADI recipients may be eligible for a means tested benefit such as Universal Credit or Pension Credit.
“Those already in receipt of a means tested benefit should see no change to their income as the loss of the ADI will be offset by an increase in their means tested benefit.”