Source · Select Committees · Work and Pensions Committee
Recommendation 1
1
Accepted
Pensioner poverty has risen since 2010, leaving millions below the Minimum Income Standard.
Conclusion
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 below the Minimum Income Standard. No older person should be unable to have a minimum, dignified, socially acceptable standard of living. (Conclusion, Paragraph 16)
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
The Government remains steadfast in its commitment to support pensioners and giving them the dignity and security they deserve in retirement. The last Labour Government lifted over one million pensioners out of poverty. It introduced Pension Credit, targeting support to low-income households and also established automatic enrolment, beginning the work needed to improve the retirement outcomes of future pensioners. The State Pension remains the foundation of state support for older people and the Government’s commitment to maintain the Triple Lock means that the annual spend on State Pensions is forecast to rise by around £31 billion during the course of this Parliament. In 2025/26, we will spend £174.9 billion on benefits for pensioners in Great Britain, which equates to 5.8% of GDP. Maximising the take-up of Pension Credit is a key priority and aligning the administration of Pension Credit with pensioner Housing Benefit will help ensure that more pensioners receive all the financial support to which they are entitled. The Government recognise that pensioner poverty is often the result of compounding disadvantages that start long before retirement which is why state support is provided accordingly. For example, we have increased the National Living Wage to £12.21 an hour – boosting the pay of over 3 million workers and provided a new ‘Fair Repayment Rate’ for the poorest households as part of the ongoing UC review, giving 1.2 million households an average £420 per year. Our commitment to increase the State Pension by the Triple Lock is helping today’s pensioners and also providing the pensioners of tomorrow with certainty. The introduction of Automatic Enrolment has both increased and equalised workplace pension participation rates between men and women in the private sector. Together, the new State Pension and Automatic Enrolment provide a robust system for retirement provision in the decades ahead. And Pension Credit continues to provide a vital safety net for those on a low income.
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