One of the most persistent myths in the UK is that all pensioners are doing well - protected by the State Pension triple lock, mortgage free homeowners enjoying greater financial security than previous generations. But the uncomfortable truth is that 1.7 million older people in the UK are living in poverty, with another million precariously on the brink of it.
Heartbreaking stories of hardship
Everyday staff at Independent Age, the national charity focused on tackling financial hardship in later life, hear heartbreaking stories of people skipping meals, living in homes that are too hot in the summer and cold in the winter due to worry about escalating energy bills and going without the essentials to make stretched budgets go further.
It shames us all that millions of older people are facing financial hardship and the relentless anxiety they experience wondering where the next pound is coming from to pay ever increasing bills.
Benefits could lift 280,000 out of poverty
The encouraging news is that this situation can change. Research commissioned by Independent Age found that by boosting take-up of just three existing financial entitlements to 100% - Pension Credit, Council Tax Reduction and Housing Benefit - around 280,000 older people (15%) could be lifted out of poverty, and around 800,000 would have more money in their pockets.
The NHS and social care system would also benefit, saving around three-quarters of a billion pounds a year. As older people have extra income to buy more nutritious food, keep their homes at a comfortable temperature to ward off illness and visit their doctor more regularly, they are less likely to need urgent medical care, freeing up NHS resources.
Existing entitlements not reaching those in need
Crucially, these are not new entitlements, they already exist because successive governments recognised that some older people need additional financial support. Yet far too many who qualify are missing out.
Some are unaware of what they are entitled to. Others find the system to apply too complicated or face administrative barriers. The consequence is that vital support isn’t reaching many of those who need it most.
Charity urges government action
Independent Age is calling on the UK Government to take action to transform take-up rates. We are urging Andy Burnham’s team to develop a comprehensive all-entitlements take-up strategy. This should include a clear commitment to increasing take-up, measurable targets for the coming years and practical action to remove barriers preventing older people from accessing the support they are entitled to.
A root and branch review of the adequacy of entitlements for those over State Pension age is also essential. A social security system should be judged not simply by whether people receive support, but by whether that support fulfils its purpose of preventing poverty both now and in the future.
