The Department for Work & Pensions has issued an urgent warning after new figures revealed the number of pensioners pushed in poverty continues to rise.
Around 800,000 of those affected are missing out on a crucial benefit which could help top up income and provide a yearly boost worth £3,900.
This morning, the DWP published figures showing that 13 per cent of pensioners are in poverty. The number of single pensioners struggling financially has increased, with 18 per cent now living in low resources, up from last year.
David Brooks, Head of Policy at leading independent financial services consultancy Broadstone, said: “Today’s data is well timed as the Work and Pensions Committee has begun its review of pensioner poverty, and the Government is expected to kick off a review of adequacy in pensions later this year.
“Understanding the causes of pensioner poverty will be key to ensuring the system is working as it should and supporting those in need.
“For example, increasing the take up of benefits that pensioners are entitled to, particularly those targeted at poorer retirees like Pension Credit, will be critical to lifting more people out of poverty in later-life.”
Around 800,000 people are missing out on Pension Credit worth an average of £3,900 per year
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The figures highlight ongoing concerns about financial hardship among the UK’s retired population, with nearly two million pensioners facing poverty.
Around 800,000 people are missing out on Pension Credit worth an average of £3,900 per year, according to the DWP. The benefit tops up weekly income to £218.15 for single pensioners and £332.95 for couples.
Those eligible can also receive additional support with housing, council tax and heating bills. Over-75s who qualify are also entitled to a free TV licence, which will cost £174.50 from April 2025.
Pensions Minister Torsten Bell said that the Government is taking action to raise awareness of the benefit. The lack of awareness about Pension Credit’s existence is believed to be the main reason for low take-up rates among eligible pensioners.
Recipients could get an extra £81.50 weekly if they have qualifying disabilities or receive certain benefits like Attendance Allowance or Personal Independence Payment.
The DWP has launched a major awareness campaign this month, writing to 11 million pensioners about Pension Credit eligibility. The letters will be sent as part of the annual state pension uprating exercise, including leaflets promoting Pension Credit.
From April, the State Pension will increase by 4.1 percent to £230.30 per week. Guaranteed Pension Credit payments will also rise, with single pensioners receiving £221.86 weekly, up from £218.15.
Couples will see their Pension Credit increase from £332.95 to £338.61 per week.
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The initiative aims to boost benefit uptake, as research shows 77 percent of pensioners living in poverty currently receive neither pension credit nor housing benefits.
Pensioner poverty is particularly severe among those in rented accommodation, affecting 34 per centof pensioner renters compared to the overall 16 per cent rate.
Research from the Fabian Society shows that those who retired before April 2016 on the basic state pension face higher poverty levels.
The old pension rules made it more difficult to qualify for the full amount, while some on the new state pension also struggle due to housing costs and National Insurance gaps.
Sasjkia Otto, Fabian Society senior researcher, said: “Neither the state pension nor benefits guarantee protection from poverty, and many are falling through the cracks, especially those renting.”
The situation could worsen as the number of pensioners in rented accommodation increases, with 40 per centof all pensioners in poverty being renters.
The state pension remains “too low” according to researchers, despite previous improvements in pensioner poverty rates.
