Thousands of pensioners set to lose payments of up to £70/week in april
By Sam Bennet | Published January 23, 2020
Eleven-thousand pensioners are set to lose payments worth £70 per week from April, when the Government cuts extra payments for 'adult dependants', according to new data released today.
At the moment, those receiving the state pension may be eligible for an adult dependency increase (ADI). This is a payment of up to £70 per week on top of your usual state pension, for a partner who is financially dependent on you.
Although these extra payments closed to new applicants in 2010, those who were already receiving the increase were able to carry on claiming it.
But from 6 April 2020, all these payments will stop, regardless of when you started claiming.
And over 11,000 pensioners are set to lose the payment as a result, according to data obtained from the Department for Work and Pensions through a Freedom of Information request from pensions firm Royal London.
For someone claiming the maximum payment, this would mean an annual drop in income of £3,640.
What is the adult dependency increase?
The adult dependency increase is a weekly payment which is added to the recipient's basic state pension.
Its purpose is to provide for another adult who is financially dependent on you – such as a partner who doesn't receive their own state pension.
How much the payments are worth depends on which category of the old state pension you have (those receiving the new state pension won't have been eligible, as applications for the payments were closed in 2010):
- £70 per week for those with category A old state pensions, which are based on your national insurance contributions.
- £41.90 per week for those with category C old state pensions, which are for those aged 80 and over and aren't based on contributions.
I'm set to lose my adult dependency payment – what can I do?
If you're a pensioner, you deserve to save some money, not have it taken away!
Although ADI payments will stop from 6 April 2020, there are hacks every pensioner should know about to put extra pounds in your pocket.
We have put together our list of the easiest hacks that every pensioner should be doing to save £££'s in 2020:
1. receive pension credit
All payments for the ADI will stop from 6 April 2020.
But while no one will be eligible to carry on receiving it, you may be able to receive other Government help to supplement your state pension.
The Department for Work and Pensions says that if you're already receiving a means-tested benefit such as pension credit or universal credit, this will increase to offset the loss of your ADI – so your income should stay the same overall.
If not, you should check if you'll be eligible to receive pension credit after your ADI stops. This will top up your state pension if you meet certain criteria.
There are two elements to pension credit:
- Guarantee credit tops up your weekly income if it's less than £167.25, or £255.25 for couples.
- Savings credit is an extra payment for those who have some money saved towards their retirement. It's worth up to £13.73 per week for a single person, or £15.35 for couples. You'll need a minimum income of £144.38, or £229.67 for couples.
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3. Travel for less
- Senior Railcard The Senior Railcard is available to anyone aged 60 or over. It costs £30 per year and gives you a third of standard, off-peak, first-class anytime and advance tickets. You can apply for one online using your passport of UK driving licence as ID. You can also apply at most railway stations, where you can also use your birth certificate as proof of age.
- London Freedom Pass The London Freedom Pass gives free or discounted travel on London transport, including national rail, the underground and buses. Eligibility for this pass is rising in line with the women’s State Pension age. People born on or after October 6 1954 will have to wait until they are 66 years old to be eligible. You can check when you will be eligible on the Freedom Pass website. If you’re over 60 but not yet eligible for a Freedom Pass you can get a 60+ Oyster card that gives you free travel in London.
- Coach concessions At the moment there isn’t a national scheme to give discounts on coach tickets for older people. However, it’s worth checking with your coach operator if they do offer any discounts. The National Express offers a Senior Coachcard for people aged 60 and over. It costs £10 per year and gives a third of prices.
4. Free prescriptions at the chemist
If you are over 60 you can get free prescriptions and NHS sight tests in England. Prescriptions are free in Scotland, Wales and Northern Ireland. The NHS Minor Ailment service offers free medication from some community pharmacies for minor illnesses too.
5. Grab a bite to eat for less
One of the biggest benefits of being a pensioner is the amazing discounts you can get eating out… here’s our list of the top mouth-watering discounts:
- Hungry Horse Pubs: a ‘Golden Years’ menu for over 60s
- Greene King Pubs: special discounts for seniors
- McDonald’s: discounts on coffee and beverages (55+) at most locations
- Nando's: varying senior discounts by date and location
- Subway: 10% off
- Dobbies: a Senior Citizens lunch that includes two courses and a tea or coffee for just £7.45
- Krispy Kreme: 10% discount (50+)
- KFC: free small drink with any meal depending on location (55+)
- Pizza Hut: special discounts for 50+ up to 50% off! (check your local branch)
- Burger King: 10% discount on purchase depending on location (60+)
- DiamondCard: is a membership card that gives over-50's special discounts at over 100 different pubs and carveries
(Keep in mind that deals may vary at participating locations)
6. Holiday hacks
- Eurostar The Eurostar offers discounted rates for those aged 60 and over. You will usually have to travel on midday and midweek trains and book your tickets in advance.
- Ski resorts Some ski resorts, including the Three Valleys in France, offer a senior discount for people aged between 65 and 70 and free lift passes for individuals aged over 75. If they don’t ski they can still enjoy the mountain restaurants and hitch a lift back down.
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