Cost of Living: Pensioners

Opened the debate

There are two million older people living in poverty, with another million struggling just above the poverty line. Age UK research found that 4.2 million people cut back on food or groceries last year due to high costs. Health statistics worsen during winter months; many pensioners face a decision between heating their homes and affording food. The triple lock is crucial but must be supported by effective systems for paying pensions. Pension credit uptake remains low despite campaigns, suggesting a need for better data sharing and targeting strategies. Pensioner poverty persists due to high housing costs and gender pay gaps. Auto-enrolment policies have helped but more needs to be done for carers. Education on retirement planning is essential; a trial for automatic pension guidance appointments at age 50 could help.

Government Response

The Government acknowledges pensioner poverty and has committed £152 billion to benefits, including an 8.5% state pension increase in April 2024. Measures include the triple lock commitment, cost-of-living payments, and increased winter fuel support. Pension credit take-up is at 63%, with efforts focusing on targeted campaigns like writing to housing benefit claimants. Issues around topping up national insurance are being addressed with online services for direct HMRC payments. The gender pension gap has improved due to auto-enrolment but remains a focus, especially for women and carers. While absolute poverty among pensioners is declining, average incomes have grown in real terms since 2009-10. A key goal is early intervention upstream to prevent issues from escalating.