Recommendation 18

We heard widespread support for this but less consensus on what form it should take. On balance we support increasing the level of Universal Credit (UC) for all recipients in the year before State Pension age because it has a greater impact in reducing poverty and hardship. We recommend it as a short-term approach, to mitigate the impact of the increase to 67, which has already started. We propose using UC on the basis that it should enable support to be provided quickly. We recognise that the impact on work incentives is a consideration. However, the proposal is for a modest increase in support in the year before State Pension age. Those out of the labour market at this point in their lives are very unlikely to return to it. In our view, the overriding priority must be to reduce the hardship that would otherwise be a predictable result of government policy. (Conclusion, Paragraph 90)