Members of Parliament are calling for an increase in Universal Credit for 66-year-olds who are experiencing hardship, as the state pension age continues its ascent. The Work and Pensions Committee's report, 'Transition to State Pension Age,' highlights that many individuals in their early to mid-60s face financial difficulties while awaiting their state pension, which is set to rise to 67 for everyone by April 2028.
The committee suggests that a temporary boost to Universal Credit for 66-year-olds could cost approximately £600 million, a figure significantly less than the £10.5 billion saved by raising the state pension age. They argue that the need to alleviate poverty among this demographic outweighs potential impacts on work incentives.
Data indicates that poverty rates more than doubled among individuals approaching the state pension age when it increased to 66 in 2020, affecting 100,000 people. MPs warn that the further delay until age 67, particularly for those already in frail health, could exacerbate this trend. The report notes that only about 42% of 65-year-olds and 29% of 66-year-olds are still in employment, with nearly a quarter of the poorest individuals in this age group working despite ill health.
The committee has proposed two potential avenues for increasing Universal Credit: an uplift for three years for those unable to work due to ill-health, disability, or caring duties, or a phased increase in the Universal Credit standard allowance from age 60 to match the pension credit guaranteed rate. Labour MP Debbie Abrahams, chair of the committee, stated that individuals approaching pension age should not be forced to choose between continuing work in poor health or prolonged poverty.
Charities have echoed these concerns. Dr. Andrea Barry, deputy director for work at the Centre for Ageing Better, supported the call for increased Universal Credit, emphasizing the need for a comprehensive approach to pensions, work, benefits, and health. Caroline Abrahams, charity director at Age UK, added that people aged 60 to 65 require more assistance than currently provided by Universal Credit and urged the government to implement measures to prevent hardship.
A spokesperson for the Department for Work and Pensions acknowledged the report and stated that recommendations would be considered. They noted that as of February 2026, only 0.02% of the Universal Credit caseload comprised individuals aged 65 or 66, and that various support options are available for those not yet at state pension age. The government also indicated that the Pensions Commission is reviewing how to ensure secure retirements for future pensioners.
The state pension age is scheduled to reach 67 by April 2028. The timeline for the subsequent increase to 68 is subject to review, with official projections placing it between 2044 and 2046. Additionally, the minimum age for accessing private retirement savings will rise from 55 to 57 in April 2028.
The report also touches upon the triple lock, a government commitment to increase state pensions annually by the highest of inflation, average earnings growth, or 2.5%. However, it suggests that while the triple lock benefits wealthier, longer-living pensioners, raising the state pension age disproportionately affects poorer individuals with lower life expectancies.