Universal Credit Boost for Pre-Pensioners Recommended
A cross-party group of MPs is calling on Prime Minister Andy Burnham to increase Universal Credit payments for 66-year-olds as the state pension age rises. The Work and Pensions Committee has published a report urging the government to consult on the measure and implement it before the end of 2026. Currently, the standard allowance for Universal Credit stands at just £425 per month.
The state pension age is set to increase to 67 by April 2028, meaning those approaching retirement will have to wait a year longer to qualify. This change could push many into financial hardship, especially amid the ongoing cost of living crisis. The committee warns that poverty among pre-pensioners could spike sharply if action is not taken.
Impact of State Pension Age Increase
Pensioners nearing the state pension age will need to rely on savings or risk dipping into funds to stay afloat. Caroline Abrahams, charity director at Age UK, welcomed the committee's recognition of the issue. She said: 'We're delighted that the Select Committee has recognised that far too many people approaching their State Pension age find themselves in a very difficult financial position.'
Andrea Barry of the Centre for Ageing Better criticised the government for not being prepared. 'At present, too many people are left to sink or swim by themselves as they approach state pension age,' she said. The charity noted that those aged 60 to 65 experience the highest poverty rates of any adult age group over 24.
Low Employment Among 66-Year-Olds
The MPs also highlighted that fewer than half of 66-year-olds—just 42 per cent—are currently in paid work. This leaves a significant portion of this age group without a steady income and vulnerable to poverty. The committee slammed the Department for Work and Pensions (DWP) over the policy, warning of 'consequences' from the decision to raise the state pension age without adequate support.
Abrahams described the current situation as 'a senseless waste,' emphasising the need for immediate intervention. The report recommends that the Labour government consult on the Universal Credit boost and implement it swiftly to prevent a spike in poverty among those approaching retirement.
