The Commons Work and Pension Committee said around 2.8million pensioners are living below the ‘minimum income standard’ and cutting back on essentials
Keir Starmer should commit to a national strategy to tackle pensioner poverty, MPs demand in a new report today.
The Commons Work and Pension Committee also urges the government to decide on a minimum level of retirement income. The report warns around 2.8million pensioners are living below the Minimum Income Standard.
MPs said this means older people “cutting back on essentials, like food, energy use and seeing friends, in an attempt to manage costs”. They also said women make up two-thirds of those in poverty.
Among the recommendations, the Work and Pensions Committee calls for a “take-up strategy” for pension credit, which is available to the very poorest pensioners. The extra cash of up to £4,000 helps low income people with essential living costs.
But the MPs point out that take-up has been around 61% to 66% for around a decade with an estimated 700,000 households being eligible but not claiming. Despite an extra 60,000 extra awards last winter, MPs said there is still a long way to go.
A taper to pension credit should also be considered to “mitigate the cliff-edge effect” for those who currently miss out, they said.
But the MPs welcomed the decision to U-turn on the controversial cuts to winter fuel payments for millions of pensioners. “Whatever the merits of the change, it created uncertainty and anxiety for pensioners about how they would manage,” they said.
Committee chairwoman Debbie Abrahams said: “Poverty is insidious. It isolates, damages health, and strips you of dignity. After decades of contributing to society, dignity in retirement is the least you deserve.
“But too many are forced to make sacrifices that will accelerate their ageing because they don’t have enough to live on. To boost incomes, the Government needs to come up with a strategy to increase pension credit take-up. It’s a scandal that so many have missed out for so many years, often through an aversion to claiming benefits altogether, or lack of support.”
She added: “Faced with a combination of high energy costs, ill-health and ever higher rates of pensioners in more costly privately rented accommodation, tackling pensioner poverty is not simply a DWP issue.
READ MORE: ‘Tidal wave’ of pensioner poverty with almost half of over 50s terrified of retiring
“So, we’re calling for a nationwide, cross-government strategy for an ageing society that should be rooted in equity and wellbeing.”
A Government spokesman said: “Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by £1,900 this parliament.
“We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year.
“But we know there is a real risk that tomorrow’s pensioners will be poorer than today’s, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.”
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