Over 60s approaching the state pension age could be in line for a benefit boost from the Department for Work and Pensions (DWP) following a new report.
A cross-party parliamentary committee has urged ministers to boost Universal Credit payments for 66-year-olds facing hardship as the State Pension age increases to 67.
The Work and Pensions Committee published its “Transition to State Pension Age” report today, recommending the Government consult on the proposed changes with the aim of putting them in place by the close of 2026.
According to the committee’s policy suggestions, this should serve as an interim measure whilst longer-term support arrangements are developed.
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PEXELSThe state pension age is currently being phased upwards and will hit 67 by April 2028, leaving growing numbers of older claimants dependent on benefits for extended periods.
Those approaching retirement age currently receive just £425 monthly through the standard Universal Credit rate, despite deteriorating health in many cases.
By contrast, Pension Credit provides £1,031 per month but remains inaccessible until claimants reach state pension age.
This substantial gap forces many pre-pensioners to deplete savings intended for retirement while they wait to qualify for higher support.
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The report highlights that individuals with long-term health conditions, caring duties, or extensive careers in physically demanding occupations are particularly vulnerable.
Employment figures underscore the challenge, with only 42 per cent of 66-year-olds currently in paid work.
The committee issued a stark warning based on evidence from the previous pension age increase in 2020, when poverty among those in the year before reaching State Pension age surged from 10 per cent to 24 per cent.
With claimants now facing an additional year’s wait, and many already experiencing frailty, the committee cautioned that the “impact is likely to be greater this time”.
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Age UK welcomed the committee’s findings, with Charity Director Caroline Abrahams stating: “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.”
She noted that those aged 60 to 65 experience the highest poverty rates of any adult age group over 24.
Ms Abrahams added: “Allowing people who are realistically never going to work again to struggle to make ends meet until they hit State Pension age is a senseless waste.”
The charity urged the Government to respond swiftly, calling for immediate provisions to protect vulnerable individuals from hardship.