Thousands to see state pensions cut in April 2020

Approximately 11,000 people in the UK are set to face a cut to their state pension in April 2020, according to a response made to a Freedom of Information request by Royal London.

The response revealed the total amount lost could total £33m, with individuals losing up to £70 per week.

The change, Royal London indicated, will involve the final abolition of state pension additions for spouses under the state pension age who are financially dependent on the pension recipient.

Royal London highlighted that these additions were abolished under the 2007 Pensions Act – for new claims from 2010 onwards – but the change meant anyone already in receipt of their addition by April 2010 could continue receiving it for as long as they were entitled.

The new FOI request has revealed it is this transitional arrangement that will end in April this year.

Royal London policy director, Steve Webb, commented: “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.

“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 over night will make a material difference to the standard of living of those who are affected.”

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