‘Nasty shock’ for 11,000 facing state pension cuts in April

Approximately 11,000 people will face a cut in their state pension when the adult dependency increase (ADI) is abolished in April, the Department for Work and Pensions (DWP) has revealed.

In response to a freedom of information (FOI) request from Royal London, the DWP has revealed that 11,000 people were in receipt of the ADI as of February 2019. 

The ADI is an additional payment made on top of an individual’s state pension for a partner who is financially dependent on them. These additional payments are due to be abolished in April this year.

The payments were abolished for new claimants from 2010 in the 2007 Pensions Act, but anyone already in receipt of the payments by that time was allowed to continue to receive them until this year.

The FOI revealed the amount of ADI payments paid with state pensions in 2019/2020 will total £33 million, meaning individuals who currently claim this payment will lose up to £70 per week, or £3,500 per year.

Steve Webb (pictured), director of policy at Royal London and former pensions minister said the cuts will come as a ‘nasty shock’ for ‘thousands’ of people who rely on the payments to support financially dependent partners.

‘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,’ he said. ‘Although that addition was abolished for new claims in 2010, many people already in the system have continued to benefit.

‘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 overnight will make a material difference to the standard of living of those who are affected’.

Original article by By Laura Purkess for Citywire.co.uk