Recommendation 33

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)