The DWP recently explained that in some situations, individuals might receive less than the full State Pension because of what’s called an “overlapping benefit.” These are cases where you might already be getting another benefit that affects your pension payment. It’s not a new rule, but it’s one that often goes unnoticed until it affects your money.
Many people assume that reaching the State Pension age automatically means getting the full amount. But if you’ve been receiving certain other benefits—like Carer’s Allowance, Widow’s Pension, or Bereavement Allowance—it could lower your pension income.
What Is an Overlapping Benefit?
An overlapping benefit happens when two types of financial support from the government can’t be paid in full at the same time. The government has a rule to avoid paying two benefits that serve the same purpose, like replacing income.
So, if you’re already getting a benefit that is counted as a type of pension or income support, and then you claim your State Pension, the DWP might reduce your new payment. You’ll still get some money, but it may not be as much as you expected.
Which Benefits Could Affect Your State Pension?
The main benefits that might lead to overlapping issues are:
- Carer’s Allowance
- Widow’s Pension
- Incapacity Benefit
- Maternity Allowance
- Severe Disablement Allowance
- Bereavement Allowance
If you’re getting any of these and then claim your State Pension, the total amount might be adjusted. For example, if you receive £80 per week from a Widow’s Pension and your State Pension is calculated at £221.20 per week (the full new State Pension rate), you may only get the difference instead of both in full.
Why the DWP Is Warning People Now
Even though this rule has existed for a long time, the DWP is reminding people so they are not caught off guard. Many people only find out about this overlap when they see their pension payments are lower than expected.
The DWP wants future pensioners to check their benefits and plan ahead. If you’re still a few years away from retirement, you might be able to adjust your finances or change how you claim benefits.
What You Can Do About It
If you are not sure whether your existing benefits could impact your State Pension, here are some steps you can take:
- Check Your State Pension Forecast
You can do this on the official UK government website. It will show you how much pension you’re expected to get. - Speak to a DWP Advisor or Pension Expert
Talking to a qualified expert can help you understand if your benefits will overlap or reduce your pension. - Review Your Existing Benefits
Make a list of everything you receive and compare it with the list of overlapping benefits. - Plan Your Claiming Strategy
In some cases, changing the timing of your claims or ending one benefit might help you receive the full amount of another.
Final Thoughts
This warning from the DWP is not meant to scare people but to prepare them. Retirement planning should not come with unexpected surprises. By checking your benefits and getting advice early, you can avoid disappointment and make better financial decisions.
It’s always better to understand the rules now rather than find out too late. Whether you’re a few months away from claiming or still years from retirement, take the time to look at your current benefits and your State Pension forecast. This way, you’ll know exactly what to expect—and why.
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