The Civil Partnership Act brings important changes affecting same-sex couples who claim income-related benefits, regardless of whether the couple decide to form a civil partnership.
Prior to the Act, people in same sex partnerships were treated as individuals when it came to determining income-related benefits. Now, civil partners have the same benefits as married straight couples, and cohabiting gay and lesbian couples are treated the same way as cohabiting unmarried straight couples For some people this will mean a reduction in benefits, or even the end of benefit payments altogether, as their partner’s financial circumstances are taken into account.
This relates particularly ‘income-related’ benefits including Income Support, Income-based Jobseeker’s Allowance, Pension Credit, Housing Benefit, Council Tax Benefit, Working Tax Credit and Child Tax Credit. Same-sex couples have a responsibility to contact the office which deals with their benefits and explain their living circumstances. This could involve Jobcentre Plus the local benefits office, the Pension Service or the Child Support Agency depending on the benefit.
As a result of the new law, two people living together in a relationship, whether or not they are civil partners, have to make any claims for income-related benefits as a couple. Similarly, if one of the couple is already claiming benefits when they enter into a civil partnership, they must inform the office that makes the payments and continued claims must be made as a couple. One of the partners will be the claimant (except in the case of Working Tax Credit as both partners will still be claimants). This will have the effect of reducing the benefits.
There is an obligation on anyone receiving a means-tested benefit to advise the Benefits Agency if they are living with a partner or if they enter into a civil partnership.There is no publicity surrounding this obligation and so a reasonable time is permitted to allow people to become aware of the changes (reasonable time is not defined). Failure to notify may result in prosecution and or recovery of overpayments.
Speaking before the Act came into force in December 2005, Department for Work and Pensions Minister Lord Hunt assured people that “the rules will be applied with respect and sensitivity’. .
“Depending on the benefit they receive, gay and lesbian couples could be entitled to additional money for their partner and they will gain survivor rights to each others’ pension,” he said.
But it may also mean that income-related benefits, like Income Support, is reduced or stopped. This legislation is essentially about equality and any changes to benefits will mean that civil partners are being treated in exactly the same way as opposite-sex couples.
Some benefits are paid regardless of a person’s assets – these include State Retirement Pension, Attendance Allowance, Disability Living Allowance, Child Benefit and Contribution-based Job Seeker’s Allowance.
The main changes affecting these benefits as a result of the Civil Partnership Act include:
- A civil partner’s pension can be based on the other partner’s national insurance record on a bereavement or dissolution of the civil partnership.
- In a same sex couple’s household a lone parent premium paid for child benefit will cease (whether or not in a civil partnership).
- If a person is receiving a survivor benefit from a previous relationship it will end if they cohabit (whether or not in a civil partnership).
- If in a civil partnership, in the event of the death of one of the partners, bereavement benefit can be paid to the survivor.
For some benefits, individuals receiving payments may be able to get extra for their civil partner. These include Incapacity Benefit, Carer’s Allowance, Maternity Allowance, Severe Disablement Allowance, and Unemployment Supplement. Entitlement to benefits is dependent on individual circumstances and people should obtain advice from their local benefits office.
For further information contact a member of the Family & Divorce law team or call 020 7940 4000.
