Source · Select Committees · Work and Pensions Committee
2nd Report - Pensioner Poverty: challenges and mitigations
Work and Pensions Committee
HC 465
Published 24 July 2025
Recommendations
3
Accepted
Commit to reporting on the gender pensions gap at least every two years.
Recommendation
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 …
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Government Response Summary
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
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8
Not Addressed
Commit to a cross-government strategy for an ageing society with clear accountability mechanisms
Recommendation
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 …
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Government Response Summary
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
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10
Deferred
Appoint an Older People's Commissioner for England or propose equivalent advocacy mechanisms
Recommendation
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 …
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Government Response Summary
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
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18
Accepted
Report on legislative changes to enable data sharing for social tariffs and targeting households.
Recommendation
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 …
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Government Response Summary
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
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23
Accepted in Part
Include caring questions in Pension Credit and raise awareness for UC claimants about entitlement.
Recommendation
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 …
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Government Response Summary
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 in place to make Universal Credit claimants aware of potential Pension Credit entitlement through agent actions, Midlife MOTs, and State Pension invitation letters.
Department for Work and Pensions
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27
Acknowledged
Encourage using Crisis and Resilience fund for benefits take-up and assess advice sector capacity needs.
Recommendation
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, …
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Government Response Summary
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
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32
Deferred
Consult on State Pension objectives, aiming for dignified living standards and reducing pensioner inequality.
Recommendation
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 …
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Government Response Summary
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 a strategy now.
Department for Work and Pensions
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34
Deferred
Establish a plan to ensure State Pension adequacy for all, reviewing undermining system aspects.
Recommendation
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 …
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Government Response Summary
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 in place.
Department for Work and Pensions
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36
Rejected
Consider implementing a Pension Credit taper and assess options to mitigate its cliff-edge effect.
Recommendation
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 Summary
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 not receiving Pension Credit.
Department for Work and Pensions
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38
Rejected
Investigate work conditionality for younger partners in mixed-age couples, considering health and caring responsibilities.
Recommendation
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 …
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Government Response Summary
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
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40
Deferred
Assess Local Housing Allowance impact on pensioner living standards; include older people's housing in strategy.
Recommendation
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 …
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Government Response Summary
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 assessment and report by the end of 2025 as recommended.
Department for Work and Pensions
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42
Rejected
Produce comprehensive impact assessment of State Pension age increase by 2025, including mitigation.
Recommendation
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 …
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Government Response Summary
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
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Conclusions (31)
1
Conclusion
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 Summary
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.
2
Conclusion
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 Summary
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 recommendations in 2027.
4
Conclusion
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 Summary
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.
5
Conclusion
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 Summary
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 care.
6
Conclusion
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 Summary
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.
7
Conclusion
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 Summary
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 highlights as barriers.
9
Conclusion
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 Summary
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.
11
Conclusion
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 Summary
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.
12
Conclusion
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 Summary
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.
13
Conclusion
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 Summary
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 impact assessment.
14
Conclusion
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 Summary
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, and it recognises the value of joint assessments with the Chief Medical Advisor.
15
Conclusion
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 Summary
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 detail its approach in a new Fuel Poverty Strategy later this year.
16
Conclusion
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 Summary
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 approach to data and targeting future bill support, without committing to a consultation on a new social tariff.
17
Conclusion
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 Summary
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 Strategy, due later this year.
19
Conclusion
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 Summary
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 people access entitlements.
20
Conclusion
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 Summary
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.
21
Conclusion
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 Summary
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 in its communications, alongside developing accessible materials.
22
Conclusion
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 Summary
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.
24
Conclusion
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 Summary
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 external expert welfare rights advice.
25
Conclusion
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 Summary
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 will consider the experience of Scottish and Welsh governments' take-up activities, but does not commit to a specific take-up strategy for England by 2025 or promote research on economic gains.
26
Conclusion
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 Summary
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.
28
Conclusion
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 Summary
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.
29
Conclusion
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 Summary
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 and Universal Credit data by end of 2025.
30
Conclusion
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 Summary
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.
31
Conclusion
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 Summary
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.
33
Conclusion
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 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.
35
Conclusion
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 Summary
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.
37
Conclusion
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 Summary
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 criticism of its rationale.
39
Conclusion
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 Summary
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 will consider housing for older people.
41
Conclusion
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 Summary
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.
43
Conclusion
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