330,000 UK Pensioners Lose an Average of £2,600 a Year in Housing Benefit Under DWP Rules

Reports estimate affected pensioners could lose an average of around £50 a week through reduced Housing Benefit entitlement. (Photo for illustration purposes only.) (Credit: Pexels/Peter Keeble)

More than 330,000 pensioners across the United Kingdom are receiving reduced or no Housing Benefit because private pension income is included in the current Department for Work and Pensions (DWP) means test, according to new research from the Pensions Policy Institute (PPI).

Under the current rules, every £1 of private pension income reduces a claimant's Housing Benefit entitlement by 65p. The PPI said this leaves many low-income pensioners with only 35p of additional disposable income for every £1 withdrawn from a private pension. Even relatively small amounts of private pension income are immediately included in the assessment, reducing or removing support for many otherwise eligible pensioners.