The Work and Pensions Committee, a cross-party group of MPs, has called on the UK government to increase Universal Credit payments for 66-year-olds to mitigate financial hardship caused by the rising State Pension age. The committee recommends a temporary increase by the end of 2026, with longer-term support to follow.
Impact of State Pension Age Rise
The State Pension age is gradually rising from 66 to 67 between April 2026 and March 2028. The committee warns that this will leave many 66-year-olds unable to work facing a year of hardship, relying on inadequate working-age benefits and depleting retirement savings. The standard rate of Universal Credit is around £425 per month, which the committee says is insufficient for those with worsening health.
Committee chairwoman Debbie Abrahams stated: “We can’t just allow people who are already struggling as they approach pension age to be forced to choose between continuing work in poor health or prolonging their poverty as they wait for their state pension to kick in.”
Disproportionate Effects on Deprived Areas
The report highlights that ill-health and disability are concentrated in the most deprived areas, where economic opportunities are fewer. It notes that the previous increase from 65 to 66 more than doubled absolute poverty rates among 65-year-olds. The committee argues that additional social security is essential to reduce the “compounding effects of the lottery of life and the state pension age increase.”
Andrea Barry, deputy director for work at the Centre for Ageing Better, supported the proposal as a short-term measure but stressed the need for a joined-up approach across pensions, work, benefits, and health for future rises.
Government Response
A Department for Work and Pensions (DWP) spokesperson said: “We welcome the Work and Pensions Select Committee inquiry on the transition to state pension age and will consider their report and recommendations in due course.” The DWP noted that as of February 2026, only 0.02% of Universal Credit claimants were aged 65 or 66, and pointed to existing support options like Universal Credit and disability benefits.
Caroline Abrahams, charity director at Age UK, welcomed the committee’s recognition of the issue, calling it “fantastic” that the government is being urged to act quickly.
