Recommendations & Conclusions
43 items
1
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
The reductions in pensioner poverty in the late 1990s and 2000s, with the introduction of Pension Credit, were a success. However, we are concerned that from 2010 rates started to rise again. And the latest data on living standards paints a bleak picture, with 2.8 million pensioners living in households …
Government response. The government acknowledges the concern about pensioner poverty, highlighting existing measures like the State Pension Triple Lock, Pension Credit, and Automatic Enrolment. It also mentions future reports from the Casey Commission on social care and the Long-Term Housing Strategy.
Department for Work and Pensions
2
Conclusion
2nd Report - Pensioner Poverty: challen…
Deferred
Improving pension outcomes requires an understanding of the systemic challenges. Of the groups at risk, we took most evidence on the position of women, who make up two-thirds (67%) of pensioners in poverty. Some positive steps have been taken to improve their pension outcomes: in particular, through the introduction of …
Government response. The government acknowledges the issues around women's pension outcomes and the Gender Pensions Gap, stating it will continue to monitor and publish data every two years. It defers substantial consideration of improvements to the Pensions Commission, which will report its …
Department for Work and Pensions
3
Recommendation
2nd Report - Pensioner Poverty: challen…
Accepted
Sporadic reports on the size of the gender pensions gap are insufficient to track whether the situation is improving and to focus attention on the reasons for this. As such, the Government should commit to reporting on the gender pensions gap at least every two years. (Recommendation, Paragraph 29)
Government response. The government commits to monitoring and publishing reports on the Gender Pensions Gap at least every two years, in line with the availability of ONS Wealth and Assets Survey data.
Department for Work and Pensions
4
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
The pensions adequacy review should consider pension inequalities, the groups who are more likely to live in poverty in retirement, and how this will be addressed. (Recommendation, Paragraph 30) 81 Impact on older people
Government response. The government states that the Pensions Commission's terms of reference already specifically include considerations of adequacy and improving retirement outcomes for those at greatest risk of poverty, with its final report expected in 2027.
Department for Work and Pensions
5
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
As pensioners are generally on a fixed income, they face challenges responding to cost-of-living increases. Those on low incomes are likely to respond by cutting back on food, energy use and social interactions, adding to existing health risks. Various social and environmental risk factors such as poverty, bereavement and isolation …
Government response. The government outlines current and planned initiatives to address pensioner poverty and support, including increases to the National Living Wage, the Triple Lock, Automatic Enrolment, Pension Credit, a Social and Affordable Homes Programme, and the Casey Commission on adult social …
Department for Work and Pensions
6
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
The Government says it is taking a cross-department approach to address the challenges faced by older people. We were interested in arguments that it would help to have a strategy where the Government set out its objectives for older people and the mechanisms to ensure that those priorities are reflected …
Government response. The government outlines existing and planned initiatives to support older people and address poverty, but does not address the committee's specific observation about the helpfulness of a dedicated strategy for older people or the criticism regarding Winter Fuel Payments.
Department for Work and Pensions
7
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
In addition, a preventative approach requires a cross-sector approach, with stakeholders across a range of policy areas pulling together in the same direction. We were impressed by the work in areas like Greater Manchester where local authorities are collaborating with third sector and community organisations to provide integrated support for …
Government response. The government outlines existing and planned initiatives to support older people and address poverty, but does not address the identified lack of a framework for local government accountability or a central government strategy for an ageing society, which the conclusion …
Department for Work and Pensions
8
Recommendation
2nd Report - Pensioner Poverty: challen…
Not Addressed
The Government should commit to a cross-government strategy for an ageing society, with equity of health and well-being for older people at its centre. This strategy should set out how cross-sector working is to be achieved, with effective mechanisms for holding the different parties involved to account. (Recommendation, Paragraph 50) …
Government response. The government describes various existing initiatives to support older people, such as increases to the National Living Wage, the Triple Lock, and housing programs, but does not commit to developing a cross-government strategy for an ageing society as recommended.
Department for Work and Pensions
9
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
Some older people do not feel that their interests are being heard in government decision making. Wales’ Older People’s Commissioner has made a substantial difference in areas including digital inclusion, care homes and access to GP practices. The Commissioner’s statutory powers of review give the role authority and it has …
Government response. The government acknowledges the effectiveness of Wales' Older People's Commissioner and commits to considering its experience and impact to inform its future thinking in England.
Department for Work and Pensions
10
Recommendation
2nd Report - Pensioner Poverty: challen…
Deferred
We recommend the Government appoint an Older People’s Commissioner for England. If the Government decides not to, it should explain what alternative mechanism it proposes to address the issues of, for example, accountability, co-ordination and advocacy, and how this will ensure that older people in England have a strong independent …
Government response. The government defers a decision on appointing an Older People's Commissioner for England, stating it will consider the experience and effectiveness of the Welsh Commissioner to inform future thinking, without proposing an alternative mechanism.
Department for Work and Pensions
11
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
For winter 2024/25, the Government linked eligibility for the Winter Fuel Payment to receipt of Pension Credit. This removed the payment from many who needed it and set the bar for continued payment too low. Up to 760,000 pensioner households do not claim Pension Credit that they are entitled to, …
Government response. The government notes the committee's comments but responds by outlining its statutory duties regarding equality, steps to strengthen analysis, and its ongoing work on safeguarding from a separate report, without addressing the specific observations about Winter Fuel Payment eligibility.
Department for Work and Pensions
12
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
Our predecessor Committee is amongst those that have criticised Winter Fuel Payments for being poorly targeted and a ‘blunt instrument’ for tackling fuel poverty. As a universal payment, WFP went to pensioners who did not need it, and its real terms value has dwindled over two decades since it was …
Government response. The government notes the committee's comments but responds by outlining its statutory duties regarding equality, steps to strengthen analysis, and its ongoing work on safeguarding from a separate report, without addressing the specific observations about Winter Fuel Payments.
Department for Work and Pensions
13
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
The Government conducted a very limited high-level equality analysis of WFP reform, estimating the impact on the number of pensioners in poverty. We heard repeatedly about the possible impacts on their health, as well. While this may be difficult to quantify, a fuller impact assessment, 83 considering the cumulative impact …
Government response. The government notes the committee's comments about limited WFP equality analysis and states its Chief Analyst is strengthening general analysis, but primarily discusses safeguarding policies and reviews from a separate context, not directly addressing the call for a fuller WFP …
Department for Work and Pensions
14
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
As previously recommended in our report on Safeguarding Vulnerable Claimants, DWP should analyse the potential impacts of new policies or key policy changes on claimants that will be affected, including older people. This should include reviewing the capacity, data and processes it needs to do this effectively. As also recommended …
Government response. The government states DWP already has a statutory duty to analyse policy impacts, including on older people, and is actively strengthening this analysis. It confirms recommendations from a previous report are being addressed, a new safeguarding approach is under development, …
Department for Work and Pensions
15
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
Direct reductions in energy bills ensure that money is spent on energy, giving pensioners the confidence needed to turn the heating on. This is currently provided through the Warm Homes Discount, which provides a discount of £150 on bills for households on means-tested benefits. There is general agreement that this …
Government response. The government announced the expansion of the Warm Home Discount to 6 million households this winter and acknowledges that those not on means-tested benefits miss out on support due to data availability. It is working on data matching and will …
Department for Work and Pensions
16
Conclusion
2nd Report - Pensioner Poverty: challen…
Deferred
As a matter of urgency, DWP and DESNZ should consult on a new long-term targeted energy bill support scheme (a ‘social tariff’) able to provide more generous support than the existing Warm Homes Discount scheme and also to reach a wider group of pensioners in fuel poverty but not in …
Government response. The government responds by announcing the expansion of the Warm Home Discount and acknowledges the issue of supporting those not on means-tested benefits. It states a new Fuel Poverty Strategy, due later this year, will set out details of its …
Department for Work and Pensions
17
Conclusion
2nd Report - Pensioner Poverty: challen…
Deferred
Data is needed to identify people not on means-tested benefits but in need of bill support. Not having the mechanisms for this is one of the barriers to the introduction of a social tariff for energy. It is already an issue in other sectors, such as water, where social tariffs …
Government response. The government acknowledges data availability as a key barrier and states it is continuing cross-departmental work on data matching. It plans to set out more details on its approach to data and targeting future support in the new Fuel Poverty …
Department for Work and Pensions
18
Recommendation
2nd Report - Pensioner Poverty: challen…
Accepted
The Government should report back to the Committee by the end of 2025 on: the changes to primary legislation for data sharing needed to enable the introduction of a social tariff; and any short-term changes to secondary legislation that could improve access to data to enable suppliers to more effectively …
Government response. The Department for Energy Security and Net Zero commits to writing to the Committee by the end of 2025 with an assessment of necessary legislative changes for data sharing and improved access, and details of planned government action.
Department for Work and Pensions
19
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
We welcome the Government’s commitment to increase Pension Credit take-up and progress so far, with 60,000 additional awards since July 2024. Long experience and extensive research demonstrate that the main barriers to claiming relate to pride, not wanting to ask for help and a feeling that ‘benefits are not for …
Government response. The government details its significant progress in implementing place-based and strategic partnerships for Pension Credit promotion, utilizing trusted advocates, councils, and community groups. It also describes embedding messaging to position DWP as a supportive service, creating accessible materials to help …
Department for Work and Pensions
20
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
The Minister referred to the reputation of the Department and the reluctance of people to engage with it. We know that trust issues exist between working age people and the Department, and these will endure as they reach pension age. Given this, we disagree with the Minister that there is …
Government response. The government states it is strengthening its communications approach by embedding messaging that positions DWP as a supportive service and developing accessible materials to help people access their entitlements.
Department for Work and Pensions
21
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
The Department should put in place the resources needed to process claims in an efficient and timely manner and helpline advisers able to give the advice needed to navigate the system in more complex cases. The Government communications on social security benefits should emphasise that DWP is there to support …
Government response. The government states it already has resource plans and staffing flexibility to process claims efficiently and ensure staff are equipped for complex cases. It also details its existing significant progress in place-based promotion through trusted advocates and embedding supportive messaging …
Department for Work and Pensions
22
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
Differences in rules mean that it is not straightforward to award one benefit based on information provided for another without changes in legislation. We look forward to seeing the consultation on the Government’s proposed merger of Housing Benefit and Pension Credit and how the challenges arising from the differences are …
Government response. The government acknowledges the confusing system for carers to qualify for Pension Credit and states it is considering ways to improve the link between Carer’s Allowance and Pension Credit, as well as application routes for pensioners with caring responsibilities.
Department for Work and Pensions
23
Recommendation
2nd Report - Pensioner Poverty: challen…
Accepted in Part
The Government should include questions on caring responsibilities in the Pension Credit application and implement provisions in the Welfare Reform Act 2012 to allow direct access to the carer addition in Pension Credit without a claim for Carer’s Allowance. It should take forward plans to ensure Universal Credit claimants claiming …
Government response. The government acknowledges the confusing system for carers to get Pension Credit and is considering ways to improve the link with Carer’s Allowance and application routes, noting that changes would require thorough redesign. It also states it already has measures …
Department for Work and Pensions
24
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
Effective take-up work requires, firstly, face to face support and encouragement from trusted individuals and organisations on the ground. The complexity of the benefits system means that expert welfare rights advice is often also needed. In some areas, local authorities, third sector and community organisations work together effectively to do …
Government response. The government response describes its existing internal resource plans for timely claim processing and ongoing strategies for place-based promotion and supportive communications. However, it does not directly address the committee's observations regarding varying local authority coordination or the need for …
Department for Work and Pensions
25
Conclusion
2nd Report - Pensioner Poverty: challen…
Rejected
DWP should develop a strategy for benefits take-up in England by the end of 2025. It should work with the Ministry of Housing, Communities and Local Government to develop a framework for monitoring local authority work on take up and holding them to account for the results. We have heard …
Government response. The government rejects the recommendation to develop a framework for monitoring and holding local authorities accountable for benefit take-up, stating it does not believe additional burdens should be placed on them. It notes its existing support for local authorities and …
Department for Work and Pensions
26
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
Local Welfare Support plays an important role both in crisis support and in funding take-up campaigns. We note the importance of longer-term funding to allow local authorities to plan ahead and so welcome the announcement in the Spending Review of a multi-year settlement for the Crisis and Resilience Fund in …
Government response. The government acknowledges the importance of the Crisis and Resilience Fund for preventative support and benefit take-up, and is working closely with stakeholders on its detailed design, planning to issue guidance before the scheme starts on 1 April 2026.
Department for Work and Pensions
27
Recommendation
2nd Report - Pensioner Poverty: challen…
Acknowledged
When the guidance is produced, it should encourage the use of the Crisis and Resilience fund for benefit take-up work. The Government should assess what more is needed to increase the advice sector capacity needed to support this work. (Recommendation, Paragraph 136)
Government response. The government recognizes the importance of benefit take-up and the advice sector, stating they are working on the Crisis and Resilience Fund's detailed design, including considering advice sector capacity, with guidance due by April 2026.
Department for Work and Pensions
28
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
We welcome the Government’s recognition of the importance of better data sharing arrangements to increase take-up of means-tested benefits, and the work it is doing to address the issues. (Conclusion, Paragraph 141)
Government response. The government outlines its current extensive data sharing arrangements with local authorities, including 28 bulk data shares and access to DWP and HMRC information, and notes how simplifying legislation could further improve data sharing.
Department for Work and Pensions
29
Conclusion
2nd Report - Pensioner Poverty: challen…
Not Addressed
DWP should report back by the end of 2025 on progress in addressing the barriers to data sharing identified by the Minister, particularly in relation to enabling DWP to give local authorities more visibility of Pension Credit and Universal Credit data; and on sharing of HMRC data. (Recommendation, Paragraph 142) …
Government response. The government's response details existing extensive data sharing arrangements with local authorities and discusses the benefits of simplifying data sharing legislation, but does not commit to reporting back on progress in addressing specific barriers or increasing visibility of Pension Credit …
Department for Work and Pensions
30
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
We note evidence from the UK and internationally shows that the design and level of state pension benefits can have a significant impact on pensioner poverty, as well as improving health outcomes. (Conclusion, Paragraph 146)
Government response. The government acknowledges challenges in the pensions system for future generations and has established a Pensions Commission to examine long-term questions of adequacy and retirement outcomes, alongside plans to support employment.
Department for Work and Pensions
31
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
We welcome the pensions adequacy review and its focus on outcomes. We note that there are different measures, which are all helpful in telling us different things, such as: replacement rates indicate the extent to which 86 people are able to maintain a standard of living throughout life; the relative …
Government response. The government confirms the Pensions Commission's terms of reference include adequacy and improving retirement outcomes for vulnerable groups, stating the Commission will consider all evidence, engage stakeholders, and submit its final report in 2027.
Department for Work and Pensions
32
Recommendation
2nd Report - Pensioner Poverty: challen…
Deferred
The pensions adequacy review should consult on objectives for the State Pension, taking account of adequacy, sustainability and fairness. Given that it is the core of the Government’s offer to pensioners, relied on by many pensioners on low incomes, a guiding principle should be that it provides the amount needed …
Government response. The government states the Pensions Commission, due to report in 2027, will examine the pensions system, including considerations of adequacy and improving retirement outcomes for vulnerable groups, but does not commit to consulting on specific State Pension objectives or setting …
Department for Work and Pensions
33
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
One in eight pensioners rely solely on the state pension and it makes up 80% of the retirement income of the poorest pensioners. The Minister for Pensions said to us that the State Pension formed the ‘bedrock of Government support’ for pensioners, yet we heard that many of those who …
Government response. The government reaffirms its commitment to pensioners, highlighting the Triple Lock and significant spending on State Pensions, and mentions past government actions to support low-income households and improve retirement outcomes.
Department for Work and Pensions
34
Recommendation
2nd Report - Pensioner Poverty: challen…
Deferred
Once an objective for the State Pension relating to adequacy has been agreed, the Government should put in place a plan for getting everyone to that level. The first step should be to review those aspects of the state pension and benefits system that undermine its adequacy for some pensioners. …
Government response. The government states the Pensions Commission will examine the pensions system to build a future-proof, strong, fair, and sustainable system, considering adequacy and retirement outcomes, with its final report expected in 2027, deferring the immediate action of putting a plan …
Department for Work and Pensions
35
Conclusion
2nd Report - Pensioner Poverty: challen…
Rejected
The reason the new State Pension was set above the Pension Credit Guarantee was to improve savings incentives. However, over the years more ‘passported benefits’ have become linked to it, meaning that being just a few pounds above Pension Credit level can now mean missing out on thousands of pounds …
Government response. The government explains Pension Credit's purpose and rationale, arguing against reintroducing an income taper for the Guarantee Credit due to increased complexity, potential impact on take-up, higher expenditure, and undermining the new State Pension's strategic rationale.
Department for Work and Pensions
36
Recommendation
2nd Report - Pensioner Poverty: challen…
Rejected
The Government should consider the case for a taper in Pension Credit, paying particular attention to equity of outcomes for people close to the threshold, and assess other options to mitigate the cliff-edge effect. (Recommendation, Paragraph 175)
Government response. The government rejects the case for an income taper in Pension Credit, citing concerns about increased complexity, potential impact on take-up, higher expenditure, and undermining the new State Pension's strategic rationale, while noting some benefits are still available to pensioners …
Department for Work and Pensions
37
Conclusion
2nd Report - Pensioner Poverty: challen…
Rejected
The mixed age couple rule means that where one member of a couple is under pension age, they must claim working age benefits, rather than pension benefits as previously. The outcome is that some people in their 70s are still on Universal Credit, which is paid at a significantly lower …
Government response. The government reiterated its existing policy for mixed-age couples to claim Universal Credit, stating this approach ensures working-age members receive support to find work. It confirmed there are no plans to change or explore these requirements, effectively rejecting the implied …
Department for Work and Pensions
38
Recommendation
2nd Report - Pensioner Poverty: challen…
Rejected
The Government should investigate the extent to which it is reasonable to assume that the younger partners in these couples should be subject to work conditionality—taking account of any health conditions and caring responsibilities—and report back to the Committee by the end of 2025. (Recommendation, Paragraph 180)
Government response. The government rejected the recommendation to investigate the conditionality for younger partners in mixed-age couples, stating there are no plans to change or explore these requirements.
Department for Work and Pensions
39
Conclusion
2nd Report - Pensioner Poverty: challen…
Acknowledged
The Pensions Policy Institute expects the number and proportion of pensioners renting privately to grow from around 6% now to 17% in 2041. As many as 400,000 households could become dependent on means-tested benefits. Pensioners renting privately are already at risk of poverty, with the operation of the Local Housing …
Government response. The government explained the Local Housing Allowance (LHA) and mentioned its increase in April 2024, alongside the availability of Discretionary Housing Payments. It also detailed a new Social and Affordable Homes Programme and noted that the upcoming Long-Term Housing Strategy …
Department for Work and Pensions
40
Recommendation
2nd Report - Pensioner Poverty: challen…
Deferred
The Government should assess the impact of the Local Housing Allowance on pensioners and whether it leaves them with the income needed for a minimum, dignified, socially acceptable standard of living and report back to the Committee by the end of 2025. The long-term housing strategy, which will set out …
Government response. The government stated that the Local Housing Allowance is regularly reviewed, including for age-related impacts, and confirmed that the upcoming Long-Term Housing Strategy will include considerations for older people's housing. However, it did not commit to a specific new impact …
Department for Work and Pensions
41
Conclusion
2nd Report - Pensioner Poverty: challen…
Accepted
The State Pension age is an important tool for containing the costs of the State Pension. However, improvements in life expectancy across the country have stalled. People living in the most deprived areas of the country have lower life expectancy and lower healthy life expectancy than people in less deprived …
Government response. The government outlined its existing process for conducting impact assessments and evaluations for State Pension age increases, including past assessments and a future evaluation of the rise to 67 once it is complete in 2028.
Department for Work and Pensions
42
Recommendation
2nd Report - Pensioner Poverty: challen…
Rejected
By the end of 2025, the Government must produce an impact assessment of the forthcoming increase in the State Pension age from 66 to 67. This should consider the cumulative impact of policies and set out the impact on pre-pensioner and pensioner poverty, by income decile and protected characteristic. It …
Government response. The government rejected the recommendation to produce an impact assessment by the end of 2025, stating that the increase in State Pension age to 67 will only be evaluated once the rise is complete in 2028.
Department for Work and Pensions
43
Conclusion
2nd Report - Pensioner Poverty: challen…
We recognise that many 1950s women are deeply disappointed by the Government’s refusal to pay compensation following the Parliamentary and Health Service Ombudsman’s finding of maladministration. The decision has been legally challenged and we await the outcome of that process. (Conclusion, Paragraph 201) 89
Department for Work and Pensions