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UK Lawmakers Urge National Strategy to Tackle Pensioner Poverty Crisis
23 Jul
Summary
- MPs call for a minimum level of retirement income to be set and ensured
- Pension credit take-up strategy needed to boost incomes of eligible pensioners
- Reliance on top-ups like pension credit not enough to prevent poverty
The UK's Work and Pensions Committee is calling for a national strategy to address the rising rates of pensioner poverty in the country. According to the report, the number of pensioners living in relative poverty (below 60% of median income) has reached 1.9 million, or 16% of all pensioners.
The committee argues that the government needs to take decisive action, starting with setting and ensuring a minimum level of retirement income that provides a "minimum, dignified, socially acceptable standard of living." They also urge the government to create a plan to boost the take-up of pension credit, a benefit worth up to £4,000 per year, but which an estimated 700,000 eligible households are not claiming.
Experts warn that the reliance on top-ups like pension credit and housing benefit is not sufficient to prevent pensioners from falling below the poverty line. The report notes that between 2008/09 and 2022/23, the number of pensioners in households below the Minimum Income Standard rose from 1.5 million to 2.8 million. This has led to many pensioners having to cut back on essentials like food, energy, and social activities just to manage their costs.
The committee is calling for a cross-government, UK-wide strategy for an ageing society that is rooted in equity and wellbeing. They believe this could provide a framework to hold different partners accountable and ensure that policies are developed with shared objectives in mind.
