In my recent post 'Poor Old Pensioners' I looked at the way Savings Credit is being allowed to wither on the vine, and also compared the basic benefit entitlement of a 'mixed age' couple (one above Pension Credit age - currently about 61 and three-quarters - and one below) under the current benefits system and after Universal Credit is introduced. The difference being that presently, the elder partner's age determines entitlement, while under Universal Credit, the younger partner's age determines entitlement. In practice, this means the couple eligible for Pension Credit are entitled to £222.05 per week, but those entitled to Universal Credit receive just £112.86.
Right now, this could be the difference between living in Ashton-under-Lyne (where Universal Credit is being rolled out) or Newcastle-under-Lyme (which is currently spared). Or it might be the difference between making your claim at the end of March 2014, when Universal Credit still won't have been introduced in most parts of the country, and making your claim in April 2014, or June 2014, or October 2014 or whatever random date Universal Credit comes your way. It could mean neighbours in the same financial situation receive vastly different levels of state help due to accident of postcode or a day's difference in date of claim.
But while I was explaining this scenario to a colleague, it occured to me that there is something even more bizarre about Universal Credit and people of Pension Credit age, and that concerns what happens if a single person over Pension Credit age finds a partner.
Let's look at an example concerning a single pensioner in the weird benefit world of Universal Credit: for no particular reason, let's call him Bob. Bob is 63 - not old enough for his state pension, but out-of-work. Bob doesn't have to be available for work to claim benefit at his age, and with nothing else to keep body and soul together, Bob qualifies for £145.05 per week Pension Credit.
Bob's a single chap, and a couple of widowed ladies in his street see him as an eligible batchelor - let's call them Betty and Brenda. Betty is also over Pension Credit age and also receives Pension Credit on top of her state pension, giving her a weekly income of £145.05. Brenda is still under Pension Credit age so entitled to only £71.70 per week Jobseekers' Allowance.
If Betty gets her man, the state will assume that 'two can live as cheaply as one', with common fuels bills and other household expenses, and they'll be entitled to £222.05 a week as a couple - £68.05 per week less than they received as individual claimants, but £77 per week more than Bob received on his own.
But if Bob picks the 'younger woman', their joint entitlement is only £112.86 per week Universal Credit, £103.89 less than they received individually and, astonishingly, £32.19 per week less than Bob was entitled to on his own. In this case, two must live more cheaply than one. Bad luck, Brenda: youth loses out to experience where Universal Credit is concerned.
And youth loses out by even more if Bob's house is rented and has a 'spare room' or two, as he and Brenda would then be liable for 'Bedroom Tax' - deducted from their Universal Credit - while he and Betty would not.
Similar financial dilemmas arise for unemployed couples when the elder reaches Pension Credit age. If they stay together under the new benefit regime, it's £112.86 per week Universal Credit for the pair of them (actually paid monthly in arrears), at least until the younger partner crosses the Pension Credit age threshold, but if the 'pensioner' opts to go it alone, he or she is eligible for £145.05 weekly as a single person. With families under exceptional financial and emotional pressure during long-term unemployment, and new work generally harder to find as you get closer to retirement age, it is entirely possible that this will end relationships and that people will have to consider separating in order to pay the bills.
While 'taxpayers' are being offered a tax break, supposedly to encourage stable relationships through marriage and civil partnerships, older unemployed couples face a harsh financial penalty for staying together.
