Source · Select Committees · Work and Pensions Committee
Recommendation 33
33
Acknowledged
Many pensioners, including 2.1 million, rely on inadequate State Pension and experience hardship.
Conclusion
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 rely on it are experiencing financial difficulties and hardship. Some of the reasons for this relate to the design of means-tested benefits such as Pension Credit and Housing Benefit and some to low-take up. However, it is also the case that many pensioners do not receive the full new State Pension. Comparisons are complex, partly due to the interaction with workplace pensions. However, those at risk are likely to include the 2.1 million who receive less than the full basic State Pension. (Conclusion, Paragraph 166)
Government Response Summary
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.
Government Response
Acknowledged
HM Government
Acknowledged
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.