A new analysis by Public First reveals that if every older person in the UK claimed the benefits they are entitled to, the number of pensioners living in poverty would drop by 280,000. The research, commissioned by the charity Independent Age, also calculates that the resulting health improvements would save the NHS and social care services in England approximately £790 million.
Pensioner Poverty Could Fall by 15%
The study found that if everyone eligible claimed pension credit, pensioner housing benefit, and the council tax reduction, pensioner poverty would fall by 15%. Currently, around 1.7 million older people were in relative poverty in 2024-25, an increase of about 200,000 compared to the previous year. Another million are considered at risk of poverty.
Low Take-Up of Entitled Benefits
Despite these figures, 38% of those eligible for pension credit are not receiving it, and approximately 230,000 older households are missing out on housing benefit. In 2023/24, only 62% of eligible individuals received the income top-up pension credit, meaning 1.2 million older people missed out on a combined £2.5 billion of available support.
Personal Impact: Valerie Michalski's Story
Valerie Michalski, a 68-year-old pensioner from the Isle of Wight, described her struggles before receiving full support. “I had to cut back on everything. I lived on £1 meals… I relied on a local community pantry where £5 bought roughly £15 of food. I couldn’t afford to put the heating on. My house is all electric and it was simply too expensive. I spent winters wrapped in blankets, drinking cups of instant soup to keep warm, and sometimes slept downstairs so I didn’t have to walk through cold rooms at night,” she said.
After being helped by Independent Age to receive housing benefit and a council tax reduction, her situation improved dramatically. “Life is so much better now. I still budget carefully, but I’m not living on my credit card anymore. I can buy fresh vegetables, cook proper meals and freeze portions so food lasts longer,” she added.
Charity Calls for Government Action
Joanna Elson, chief executive of Independent Age, said: “Our social security system was designed as a safety net for all of us but the evidence is clear, it is failing older people in poverty. Money that has been set aside is not reaching the older people who need it and at a time with increasing costs, the impact of this is devastating.” She described the change in prime minister as a “golden opportunity for the UK Government to reverse the worsening picture of poverty in later life.”
Government Response
A Government spokesperson responded: “Supporting pensioners is a priority and our commitment to the triple lock for the rest of this Parliament means millions of pensioners will see their yearly State Pension rise by up to £2,100. Thanks to our biggest ever pension credit take-up campaign, we have seen an additional 33,500 pension credit awards in 2025, worth on average £87 a week, compared with the previous year. We are also working to bring together the administration of pensioner housing benefit and pension credit, to ensure more pensioners receive all the benefits they are entitled to.”
