The cross-party Work and Pensions Committee has today launched
its new Pensioner Poverty: challenges and mitigations
inquiry.
The wide-ranging inquiry will take stock of the impact of
pensioner poverty and its potential mitigations, including on
health, help with energy costs, and the costs that should be
covered by the State Pension and other pension age benefits.
The announcement comes a week after the Secretary of State confirmed
when questioned by the Committee that the second phase of the
Government's pensions review will “be looking at future outcomes,
including pension adequacy”. This has left open the question
of the adequacy of State Pension benefits, which often make a
significant contribution to retirement income, even for those
with some private pension savings.
The Government's recent analysis, published in a letter to the Committee
earlier this week, shows that around 50,000 pensioners could
find themselves in absolute poverty after housing costs as a
consequence of the changes to Winter Fuel Payment eligibility.
Committee Chair said, “The decision by the
Government to restrict Winter Fuel Payment eligibility to those
in receipt of some means-tested benefits, like Pension Credit,
has brought the issue of pensioner poverty into sharp focus.”
“We understand the rationale as part of the effort to restore the
UK's finances, but it's concerning that potentially tens of
thousands would sink below the poverty line without other kinds
of support. Just one falling into it is a tragedy. It gives just
a hint of how many pensioners could be struggling, but are we
doing enough for them?”
“The effects of living in poverty are also likely to hit
different groups of people in different ways. How do different
cohorts cope, pay for their food and heat their homes, and what
are the consequences for the NHS and social care?”
“We want to hear from experts and pensioners at the sharp end to
examine the situation to inform the debate around the pensions
review, and make some recommendations to Government that will
ensure people get the support they need.”
Inquiry terms of reference
The inquiry will examine the following questions below. If you
would like to submit evidence to the inquiry, please answer one
or more of the questions below on the evidence submission portal
by 23.59 on Monday 6 January 2025.
- What is the state of pensioner poverty across the UK? Which
groups are most likely to be affected?
- How does poverty impact on groups across the lifespan?
- Are there international comparisons we could learn
from?
- To what extent does the current State Pension and other
pension age benefits prevent pensioner poverty?
- What essentials should the State Pension and other pension
age benefits provide?
- How do pensioners in poverty manage food, energy and housing
costs with the income they have?
- What impact does the cost of living have on the health of
pensioners in poverty? What impact does this have on the NHS and
social care?
- What measures to offset the impact of the cost of living on
pensioners are most effective? How do these vary in the devolved
nations?]
- How effective are discretionary payments such as the
Household Support Fund? How can support be more effectively
targeted at pensioners in poverty?
- What is needed to improve access and take up of Pension
Credit and other social security support for pensioners in
poverty?
- Are there sufficient data to enable efficient targeting of
support? Are there delivery mechanisms that allow effective
targeting?
ENDS
Notes to editors
- The Terms of Reference (ToR) for the Government's Pensions
Review were published on 4 September 2024. Details of phase two
are yet to be published.
- A transcript of the Work and Pensions Committee's evidence
session with Secretary of State for Work and Pensions can be found here. Video and
audio of the session can be watched and downloaded here.
- In 2024/25, the amount of
Winter Fuel Payment is £200 per household, or £300 where
the household includes someone aged over 80. The Government
announced it would restrict eligibility to those in receipt of
Pension Credit or certain other means-tested benefits from this
winter.
- The State Pension contributes significantly to the retirement
incomes of pensioners, particularly poorer pensions, according to
the Institute of Fiscal
Studies.
- Over the last decade, the proportion of those qualifying for
Pension Credit who claim it has been consistently below
two-thirds. (House of Lords Secondary
Legislation Committee)
