A cut to a pension credit which rewards over 65s who have made additional savings for retirement, may mean thousands of pensioners will not benefit from the state pension increase this year.
An increase to the eligibility threshold and a reduction to the maximum amounts payable in the savings credit will mean many people will see a cut to their retirement incomes.
The Telegraph reported one pensioner was told that their basic state pension payment will be increased by £5.30 a week, while payments under their savings credit will be reduced by £4.40 a week.
Tom McPhail, head of pensions research at Hargreaves Lansdown said it would affect current retirees with private savings of a few tens of pounds a week.
He said: "These are the people who can least afford to see a few pounds a week going from their income, that's where there's been this sense of frustration about the government giving with one hand and taking with the other. These are not wealthy pensioners."
The threshold at which a single pensioner can claim savings credit is rising from £103.14 a week to £111.80 a week. The maximum amount payable is being reduced from £20.52 a week to £18.54.
For couples the threshold will rise from £164.55 a week to £178.35. The maximum payment made will fall from £27.09 a week to £23.73.
McPhail said: "Cynics might suggest that's a deliberate ploy on the part of the government to recoup some of the cost [of the state pension increase]. As I understand it, the cost per individual is a few pounds per week. So it's not a substantial loss but I appreciate the people for whom it's relevant, a few pounds a week is significant and will matter.
"I'm willing to give the government the benefit of the doubt that it is part of a tidying up and aligning of thresholds. But if the result is some people with modest savings end up losing out, then it's not unreasonable to ask the government why they didn't anticipate this and set the threshold to the point it wouldn't happen, given that we've got pension reform only a few years away.
"Why not hold on with these movements in the thresholds until such point as we've moved to the single state pension and tidied things up at that point in five years' time?"
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