Transitional relief urged for hard-hit same-sex partners.
London – 7 December 2005
“Many cohabiting same-sex couples will experience a loss of state benefits, as a side effect the new Civil Partnership Act. Even couples who don’t want a civil partnership and have not registered their relationship will face cuts. If one or both partners is on means-tested benefits or tax credits they will suffer financial losses. They could lose some or all of their income,” according to Peter Tatchell of the lesbian, gay, bisexual and transgender human rights group OutRage!
“Thousands of same-sex couples will be adversely affected. To give one example, Andrew Bretell, a 63 year old gay man suffering from long-term ill-health, will lose benefits worth £6,120 a year (see more details below),” said Mr Tatchell.
“From December 5, to coincide with the introduction of civil partnerships, the government’s benefits and tax agencies will assess as a couple all same-sex partners who are living together; ending individual assessment.
“Couples will have no choice. The new arrangements will be forced on same-sex partners who choose not to register a civil partnership, as well as those who do. There will be no transitional relief to help ease financial hardships caused by the new regulations.
“Transitional protection is usually provided when benefit changes are introduced. Why not in this case? The absence of transitional relief is discrimination.
“Previous changes to incapacity benefit, for example, included transitional protection. People already claiming benefits were not affected by the new rules. The same transitional protection should now be made available to cohabiting same-sex partners.
“All current claimants should be assessed under the old rules and only new claimants should be assessed under the new rules. This would be the fairest way of dealing with these difficulties.
“The rule changes will affect all cohabiting same-sex couples where one or both partners is receiving income support, housing benefit, council tax benefit, job seekers allowance, or child, pension and working tax credits, according to the Department of Work and Pensions.
“The changes will have devastating effects for a couple where one partner is on means-tested benefits and the other has an income. Because they will be jointly assessed, the partner claiming benefits could lose most or all of their benefits, including income support, housing benefit, council tax benefit and free prescriptions and dental treatment.
“This could mean a loss of income amounting to thousands of pounds a year to cohabiting same-sex households where one or both partners are on a low income or are unemployed, elderly, sick or disabled.
“Joint assessment and cuts in benefits will force the partner on benefits to become financially dependent on their income-earning partner. It will also mean that if they took out a tenancy or a mortgage based on their existing benefits, the loss of income may force them to move to cheaper rented accommodation or to sell their home.
“We are concerned that civil partnerships will be financially beneficial to rich same-sex couples, but cause economic hardship to many low income and benefit-dependent lesbian, gay and bisexual partners – especially unemployed, elderly, ill or disabled people.
“For couples who have taken out a mortgage, loan or other long-term financial commitment based on their existing benefits, these rules changes will cause severe financial hardship.
“While we welcome parity in law, there needs to be transitional relief for current benefit recipients.
“OutRage! has written to the Secretary of State for Work and Pensions, John Hutton MP, urging the government to offer transitional relief to existing lesbian and gay couples who are claiming benefits.
“We have pointed out that transitional protection has been offered when benefit rules have changed in the past,” said Mr Tatchell.
Case history
Andrew Brettell is 63 years old. He has suffered from depression most of his life:
“Because of my ill-health and my poor work, I am on pension credit,” said Mr Brettell.
“I live with a partner who is working and we have a joint mortgage on the property in which we live.
“I am very concerned that the changes in benefit rules will adversely affect our finances. My pension credit is means-tested and my partner’s income will now be taken into account. I will lose £460 a month in pension credit, plus housing benefit of $50 per month. My total financial loss is £6,120 a year; plus the loss of free dental and prescription charges.
“The knowledge that I will soon have no income of my own, and be totally dependent on my partner, is adding considerably to my depression and lack of self-esteem,” said Mr Brettell.
Background Briefing
All LGB benefit claimants in relationships will be worse off
“The Civil Partnerships Act came into effect on 5 December. From that date, LGB (lesbian, gay and bisexual) partners who live together will be deemed to be a couple for the purposes of state benefits. They will no longer be assessed as two single, separate individuals, as has always been the case in the past.
“This is irrespective of whether they have entered into a civil partnership.
“Even couples who decide they do not want a civil partnership will be treated by the new law as if they had entered into a civil partnership.
“This will mean that two people of the same-sex who are living together will be jointly assessed as a couple and will have their means tested benefits reduced. Some may lose their benefits altogether.
People on low incomes will be hit the hardest
“LGB people on low incomes, and who rely on means tested benefits, are most likely to suffer under the rule changes. This includes LGB disabled people and older people, and same-sex parents receiving Working Families Tax Credits.
“Whilst Civil Partnerships legislation may benefit richer LGB people in terms of inheritance tax and transferrable pension rights, many poorer LGB people will lose out.
“What will be the effects on LGB disabled people, older people and LGB parents on low incomes?
“We all plan our lives based on our expected income. Older and disabled people, who had good reason to believe they would be on benefits for a long time, may have bought a house on the basis of their projected state benefits, which they assumed would not change. In other words, they made long-term financial commitments based on their current benefits. Others may have rented homes, likewise relying on housing benefit to cover their weekly payments.
“The new legislation could force some same-sex couples to move out of their home into cheaper, less suitable accommodation – a huge and stressful disruption, especially to elderly and disabled LGB people.
“Some same-sex couples may have taken on loans and other financial commitments based on their current benefits. A loss or reduction in benefits could lead to debt, bankruptcy, financial hardship and huge worries for many vulnerable people.
The need for transitional protection
“It could be argued that these changes provide parity with married and cohabiting heterosexual couples. This is true. With new rights come new responsibilities.
“These new regulations are, however, being introduced without any transitional protection for couples who will be adversely affected by the change in the rules.
“Transitional protection is usually provided when benefit changes are introduced. Why not in this case? The absence of transitional protection is discrimination.
“People currently on benefits need to be protected from severe financial hardship. This can only be achieved if transitional protection is given to LGB people who will be affected by the changes.
“All current claimants should be assessed under the old rules and only new claimants should be assessed under the new rules. This would be the fairest way of dealing with these issues.
“When other benefit rules have changed in the past, transitional protection has been put in place to protect people who would have lost benefits. In the case of pre-existing claimants, for the length of their claim they have continued to be assessed under the old rules. This principle should also apply to the new benefit changes affecting same-sex couples.
“Previous changes to incapacity benefit, for example, included transitional protection. People already claiming were not affected by the new rules. The same transitional protection should now be made available to cohabiting same-sex partners.
“In the long term, we believe everyone is entitled to an independent income and individual assessment. This would mean more equality within relationships, reducing dependence by one partner on another. This is particularly relevant to people who are financially trapped in relationships where they suffer domestic violence. Financial independence and security would give such people an escape route.
The new regulations are intrusive and may discourage benefits take-up
“Many LGB people, particularly older people, find scrutiny of their relationships intrusive. This means that they may not apply for benefits that they would be entitled to, even under the new rules.
“The pensions agency privately admits it is concerned that the new regulations could result in some LGB older people suffering income losses and living in poverty.
Little publicity and poor awareness of the new rules
“The public awareness of this change in regulations is still low among LGB people. Leaflets are being placed in Department of Work and Pensions (DWP) offices. But many claimants never visit DWP offices and are not in contact with LGB organisations who may know about the changes.
“If, some months or years down the line, people do not inform the DWP that they are a couple and the DWP suddenly demands repayments, this could push them into serious debt and cause great hardship.
“The government says that the new rules will be applied “sensitively”. It is hard to see how it is possible to question people about their intimate relationships and to remove their benefits sensitively.
“Our information is that the guidance for benefits office staff has not been distributed to many local DWP offices, even though it is now just weeks before the change comes into effect. It is therefore unlikely that all DWP staff will receive adequate training before 5 December.
Even LGB people living together, who are not in couples, may be affected
“The government has revised it’s definition of “living together as man and wife”. The new definition is not based on whether people are in a sexual relationship but how they organise their household.
“Many LGB people do not live in traditional relationship structures. Some, for example, live with ex-partners or best friends but remain economically independent.
“These people may be caught by the new rules and be classified as a couple. They may, for example, lose all their benefits if someone else in their household is earning a good income and has been assessed as the equivalent of their partner.
“Proving you are not in a relationship with another household member, especially a former partner, may be difficult and very stressful,” said Mr Tatchell.