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Liverpool Echo
Liverpool Echo
National
James Andrews & Alan Weston

Thousands of pensioners to lose £70 a week after government cut

The Government is taking £33m away from people's pensions as they end the allowance for adult dependents.

The benefit is worth £70 a week, but will stop being paid in April, reports Mirror Live . It is designed to help people with someone else relying on them.

Usually this is a husband or wife who is under the state pension age and has relied on them as a breadwinner.

Steve Webb, Royal London policy director, 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."

Royal London launched a Freedom of Information request to find out just how many people would lose out - discovering 11,000 pensioners are still in receipt of the cash.

The benefit is worth £70 a week (Getty Images/iStockphoto)

"It will come as a nasty shock to thousands of people to see their state pension cut by up to £70 per week," said Mr Webb.

"Losing over £3,500 per year overnight will make a material difference to the standard of living of those who are affected'."

The move comes as a result of the Pensions Act 2007, which blocked people from applying for the credit after 2010.

But anyone already getting the extra cash by then was allowed to keep claiming it for as long as they were entitled.

Big changes to wages, benefits, pensions, tax rules and more coming in 2020

That will stop in April, seeing anyone with an "adult dependent" - generally a husband or wife under state pension age - lose the extra cash.

"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," said Mr Webb.

A Department for Work and Pensions spokesperson said: “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.”

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