Latest news with #WorkandPensionsCommittee


Daily Mirror
2 days ago
- Health
- Daily Mirror
Keir Starmer told to delay DWP Universal Credit cuts for new claimants
The Work and Pensions Committee led by Labour MP Debbie Abrahams warns in a new report disabled people could still be pushed into poverty as a result of the watered-down reforms Keir Starmer must delay a cut to Universal Credit for new claimants, a new report by MPs warns today. The Work and Pensions Committee says disabled people could still be pushed into poverty as a result of the watered-down reforms. Earlier this month the PM U-turned on plans to restrict eligibility for a key disability benefit — Personal Independence Payments (PIP). But there will be changes to the health element of Universal Credit for new claimants. From April 2026 all existing and new claimants with severe or terminal conditions will be protected, the MPs said. But they added other claimants assessed as having limited capability for work and work-related activity will see their awards halved — from £423.27 to £217.26 a month. While welcoming the major U-turn on PIP last month, the MPs' report said: "We remain critical, however, of the Government's failure to properly assess the impact of the cut to UC health on poverty, health and labour force participation. "For this reason, we urge it to delay the measure until it has had time to make such an assessment." Committee Chair Debbie Abrahams said: 'We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill). But there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.' She added: "The Government's own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them - will enter poverty by 2030 as a result of the reduction in support of the UC health premium.' 'We recommend delaying the cuts to the UC-health premium, especially given that other policies such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.' 'We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected. The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.' Responding to the report, Nil Guzelgun from charity Mind, said: 'We cannot build a fair and compassionate system by stripping away support from those who need it most. Real reform must start with listening, both to the evidence and to disabled people themselves. "We urge the Government to pause these damaging plans and commit instead to a benefits system that protects people's health, dignity and independence.'


Daily Record
6 days ago
- Business
- Daily Record
New calls for national strategy to tackle pensioner poverty and set minimum retirement income
The Work and Pensions Committee is also calling for a Pension Credit take-up strategy by the end of this year. Pension Credit – Could you or someone you know be eligible? The Work and Pensions Committee has called for a national strategy to tackle pensioner poverty. The cross-party groups of MPs also said the UK Government should decide on - and ensure - a minimum level of retirement income. It added that once set, a plan should be created for everyone to reach that level. The Committee said that given that the State Pension is the core of the Labour Government's offer to pensioners, a guiding principle should be that it provides the amount needed for a 'minimum, dignified, socially acceptable standard of living'. It called for a commitment to a UK-wide, cross-government strategy for an ageing society that it said would help target support to tackle pensioner poverty. The Pensioner Poverty report warned that if it does not effectively tackle poverty as one of the causes of ill-health, 'the Government will not be able to achieve its goal of building a health and social care service that is sustainable'. The report also highlighted longer-term trends that 'threaten to undermine pension adequacy', such as people renting into later life. The committee also called for a Pension Credit take-up strategy for England by the end of 2025. The Committee said that despite being worth an average of £4,300 a year, the take-up of Pension Credit has hovered between 61 per cent and 66 per cent for a decade, with an estimated 700,000 households being eligible but not claiming. A taper to Pension Credit should also be considered to 'mitigate the cliff-edge effect' for those who currently miss out, the report said. Under current rules, some State Pensioners just above income thresholds could end up worse off than those with slightly lower incomes, it added. A successful claim for Pension Credit - even if it's just £1 per week - can unlock access to other support including help with housing costs, heating bills, Council Tax and a free TV licence for the over-75s. How to check eligibility for Pension Credit Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. The Committee argued that reliance on top-ups such as Pension Credit and Housing Benefit is not sufficient to ensure people do not fall below the poverty line. The report said: 'After a decline in pensioner poverty in the 2000s, the number of pensioners in relative low income started to rise again from 2010. This has been exacerbated by increases in the cost of living since 2021.' It continued: 'The number of people of pension age living in relative poverty (below 60% of median income) is 1.9 million or 16 per cent of pensioners. 'Measures which factor in the cost of living show that between 2008/09 and 2022/23, the number of pensioners in households below the Minimum Income Standard (MIS) - the amount needed for a minimum dignified socially acceptable standard of living - rose from 1.5 to 2.8m. 'The proportion of pensioners below 75 per cent of MIS (where the risk of material deprivation increases substantially) rose from 5.9 per cent in 2021/22 to 9.5 per cent in 2022/23. 'In practice, this means cutting back on essentials, like food, energy use and seeing friends, in an attempt to manage costs. Health experts explained the implications for health. Financial hardship can accelerate the ageing process, making it more likely that an older person will enter hospital or need care.' The Committee said that in some places, organisations are working together towards shared objectives. The report continued: 'However, not all areas do this. We heard that it would help to have a national cross-government strategy for our ageing society and older people. 'This could provide a framework to hold the different partners to account for their role in delivering the agreed outcomes. It could also ensure that central government departments developed policy with shared objectives in mind.' Committee chairwoman Debbie Abrahams said: 'To boost incomes, the Government needs to come up with a strategy to increase Pension Credit take-up. It's a scandal that so many have missed out for so many years, often through an aversion to claiming benefits altogether, or lack of support. 'The fairness of the Pension Credit eligibility criteria where if you are a penny above the threshold, you miss out on thousands of pounds, also needs to be looked at. 'Ultimately, the Government should decide what it thinks is enough for a dignified retirement, and then work to ensure that all pensioners are on at least that level. 'Faced with a combination of high energy costs, ill-health and ever higher rates of pensioners in more costly privately rented accommodation, tackling pensioner poverty is not simply a DWP (Department for Work and Pensions) issue. So, we're calling for a nationwide, cross-government strategy for an ageing society that should be rooted in equity and wellbeing.' Independent Age Chief Executive Joanna Elson CBE, said: 'The Work and Pension's Committee has highlighted the urgent truth; the UK needs a strategic approach to tackle pensioner poverty. With millions of older people living in financial hardship, now is the time for action. 'The older people Independent Age speaks to are living on desperately small incomes, forcing them to make drastic cutbacks. They are going to bed in hats and coats, eating one small meal a day and washing less to save on water. This is not right. 'We warmly welcome the Committee's recommendations and are pleased to have contributed to this important inquiry, alongside the many people in later life who shared their views directly with the Committee. The voices of older people have been heard throughout this inquiry and the tangible and impactful recommendations speak to the changes older people in poverty need to see now and in the future.' She added: 'Our own research highlights the importance of people having an adequate income in later life, particularly those reliant on just the State Pension and social security system. Also essential is that everyone receives the financial entitlements they are eligible for, and that policies are in place to support people on a low income to pay their rent and household bills. 'We have also long campaigned for an independent Commissioner for Older People and are pleased to see the Committee recognise the need for this role.' Earlier this week, Chancellor Rachel Reeves said that a review into raising the State Pension age is needed to ensure the system is 'sustainable and affordable'. The UK Government review is due to report in March 2029 and Ms Reeves said it was 'right' to look at the age at which people can receive the State Pension as life expectancy increases. The State Pension age is currently 66, but is set to start rising to 67 between 2026 and 2028. A Government spokesperson told the PA news agency: 'Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament. 'We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year. 'But we know there is a real risk that tomorrow's pensioners will be poorer than today's, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.'


South Wales Guardian
7 days ago
- Business
- South Wales Guardian
UK-wide strategy needed to tackle pensioner poverty, says committee
The Government should also decide on – and ensure – a minimum level of retirement income, the Work and Pensions Committee urged. Once set, a plan should be created for everyone to reach that level, it added. Given that the state pension is the core of the Government's offer to pensioners, a guiding principle should be that it provides the amount needed for a 'minimum, dignified, socially acceptable standard of living', the committee said. It urged the Government to commit to a UK-wide, cross-government strategy for an ageing society, that it said would help target support to tackle pensioner poverty. If it does not effectively tackle poverty as one of the causes of ill-health, 'the Government will not be able to achieve its goal of building a health and social care service that is sustainable', the Pensioner Poverty report warned. The report also highlighted longer-term trends that 'threaten to undermine pension adequacy', such as people renting into later life. The committee also called for a pension credit take-up strategy for England by the end of 2025. Despite being worth up to £4,000 a year, the take-up of pension credit has hovered between 61% and 66% for a decade, with an estimated 700,000 households being eligible but not claiming, the committee said. A taper to pension credit should also be considered to 'mitigate the cliff-edge effect' for those who currently miss out, the report said. Under current rules, some pensioners just above income thresholds could end up worse off than those with slightly lower incomes, it added. Pension credit can 'passport' recipients to other benefits such as housing benefit, council tax support, the warm homes discount, a free TV licence, help with dental treatment and, in winter 2024/25, the winter fuel payment. The committee argued that reliance on top-ups such as pension credit and housing benefit is not sufficient to ensure people do not fall below the poverty line. The report said: 'After a decline in pensioner poverty in the 2000s, the number of pensioners in relative low income started to rise again from 2010. This has been exacerbated by increases in the cost of living since 2021.' It continued: 'The number of people of pension age living in relative poverty (below 60% of median income) is 1.9 million or 16% of pensioners. 'Measures which factor in the cost of living show that between 2008/09 and 2022/23, the number of pensioners in households below the Minimum Income Standard (MIS)—the amount needed for a minimum dignified socially acceptable standard of living—rose from 1.5 to 2.8 million. 'The proportion of pensioners below 75% of MIS (where the risk of material deprivation increases substantially) rose from 5.9% in 2021/22 to 9.5% in 2022/23. 'In practice, this means cutting back on essentials, like food, energy use and seeing friends, in an attempt to manage costs. Health experts explained the implications for health. Financial hardship can accelerate the ageing process, making it more likely that an older person will enter hospital or need care.' The committee said that in some places, organisations are working together towards shared objectives. The report continued: 'However, not all areas do this. We heard that it would help to have a national cross-government strategy for our ageing society and older people. 'This could provide a framework to hold the different partners to account for their role in delivering the agreed outcomes. It could also ensure that central government departments developed policy with shared objectives in mind.' Committee chairwoman Debbie Abrahams said: 'To boost incomes, the Government needs to come up with a strategy to increase pension credit take-up. It's a scandal that so many have missed out for so many years, often through an aversion to claiming benefits altogether, or lack of support. 'The fairness of the pensions credit eligibility criteria where if you are a penny above the threshold, you miss out on thousands of pounds, also needs to be looked at. 'Ultimately, the Government should decide what it thinks is enough for a dignified retirement, and then work to ensure that all pensioners are on at least that level. 'Faced with a combination of high energy costs, ill-health and ever higher rates of pensioners in more costly privately rented accommodation, tackling pensioner poverty is not simply a DWP (Department for Work and Pensions) issue. So, we're calling for a nationwide, cross-government strategy for an ageing society that should be rooted in equity and wellbeing.' On Tuesday, Chancellor Rachel Reeves said that a review into raising the state pension age is needed to ensure the system is 'sustainable and affordable'. The Government review is due to report in March 2029 and Ms Reeves said it was 'right' to look at the age at which people can receive the state pension as life expectancy increases. The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age. A Government spokesperson said: 'Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament. 'We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year. 'But we know there is a real risk that tomorrow's pensioners will be poorer than today's, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.' Emma Douglas, wealth policy director at Aviva, said: 'The pensions industry – alongside a revitalised Pensions Commission – has a critical role to play in helping people save for retirement and then turn their hard-earned pension pots into lasting financial security. 'With many people likely to manage their money well into their 90s, we must ensure those savings work harder and stretch further – especially as later life can bring complex challenges like cognitive decline.' She said that Aviva and Age UK were exploring a 'mid-retirement MOT' to help give people tools, guidance, and confidence to stay financially resilient throughout retirement. Caroline Abrahams, charity director at Age UK, said: 'We warmly welcome this thoughtful and wide-ranging select committee report, which comes closer to providing a thorough and progressive strategic overview of the issues facing older people on low incomes and proposing workable solutions than anything successive governments have produced in recent years. 'When the Government announced the launch of the Pensions Commission earlier this week, ministers made it clear that its task is to think about the creation of a better system for future pensioners. 'This is necessary and important, but this committee report reinforces the point that there's work to do to improve the situation of today's pensioners on low incomes as well.'

South Wales Argus
7 days ago
- Business
- South Wales Argus
UK-wide strategy needed to tackle pensioner poverty, says committee
The Government should also decide on – and ensure – a minimum level of retirement income, the Work and Pensions Committee urged. Once set, a plan should be created for everyone to reach that level, it added. Given that the state pension is the core of the Government's offer to pensioners, a guiding principle should be that it provides the amount needed for a 'minimum, dignified, socially acceptable standard of living', the committee said. It urged the Government to commit to a UK-wide, cross-government strategy for an ageing society, that it said would help target support to tackle pensioner poverty. If it does not effectively tackle poverty as one of the causes of ill-health, 'the Government will not be able to achieve its goal of building a health and social care service that is sustainable', the Pensioner Poverty report warned. The report also highlighted longer-term trends that 'threaten to undermine pension adequacy', such as people renting into later life. The committee also called for a pension credit take-up strategy for England by the end of 2025. Despite being worth up to £4,000 a year, the take-up of pension credit has hovered between 61% and 66% for a decade, with an estimated 700,000 households being eligible but not claiming, the committee said. A taper to pension credit should also be considered to 'mitigate the cliff-edge effect' for those who currently miss out, the report said. Under current rules, some pensioners just above income thresholds could end up worse off than those with slightly lower incomes, it added. Pension credit can 'passport' recipients to other benefits such as housing benefit, council tax support, the warm homes discount, a free TV licence, help with dental treatment and, in winter 2024/25, the winter fuel payment. The committee argued that reliance on top-ups such as pension credit and housing benefit is not sufficient to ensure people do not fall below the poverty line. The report said: 'After a decline in pensioner poverty in the 2000s, the number of pensioners in relative low income started to rise again from 2010. This has been exacerbated by increases in the cost of living since 2021.' It continued: 'The number of people of pension age living in relative poverty (below 60% of median income) is 1.9 million or 16% of pensioners. 'Measures which factor in the cost of living show that between 2008/09 and 2022/23, the number of pensioners in households below the Minimum Income Standard (MIS)—the amount needed for a minimum dignified socially acceptable standard of living—rose from 1.5 to 2.8 million. 'The proportion of pensioners below 75% of MIS (where the risk of material deprivation increases substantially) rose from 5.9% in 2021/22 to 9.5% in 2022/23. 'In practice, this means cutting back on essentials, like food, energy use and seeing friends, in an attempt to manage costs. Health experts explained the implications for health. Financial hardship can accelerate the ageing process, making it more likely that an older person will enter hospital or need care.' The committee said that in some places, organisations are working together towards shared objectives. The report continued: 'However, not all areas do this. We heard that it would help to have a national cross-government strategy for our ageing society and older people. 'This could provide a framework to hold the different partners to account for their role in delivering the agreed outcomes. It could also ensure that central government departments developed policy with shared objectives in mind.' Committee chairwoman Debbie Abrahams said: 'To boost incomes, the Government needs to come up with a strategy to increase pension credit take-up. It's a scandal that so many have missed out for so many years, often through an aversion to claiming benefits altogether, or lack of support. 'The fairness of the pensions credit eligibility criteria where if you are a penny above the threshold, you miss out on thousands of pounds, also needs to be looked at. 'Ultimately, the Government should decide what it thinks is enough for a dignified retirement, and then work to ensure that all pensioners are on at least that level. 'Faced with a combination of high energy costs, ill-health and ever higher rates of pensioners in more costly privately rented accommodation, tackling pensioner poverty is not simply a DWP (Department for Work and Pensions) issue. So, we're calling for a nationwide, cross-government strategy for an ageing society that should be rooted in equity and wellbeing.' On Tuesday, Chancellor Rachel Reeves said that a review into raising the state pension age is needed to ensure the system is 'sustainable and affordable'. The Government review is due to report in March 2029 and Ms Reeves said it was 'right' to look at the age at which people can receive the state pension as life expectancy increases. The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age. A Government spokesperson said: 'Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament. 'We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year. 'But we know there is a real risk that tomorrow's pensioners will be poorer than today's, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.' Emma Douglas, wealth policy director at Aviva, said: 'The pensions industry – alongside a revitalised Pensions Commission – has a critical role to play in helping people save for retirement and then turn their hard-earned pension pots into lasting financial security. 'With many people likely to manage their money well into their 90s, we must ensure those savings work harder and stretch further – especially as later life can bring complex challenges like cognitive decline.' She said that Aviva and Age UK were exploring a 'mid-retirement MOT' to help give people tools, guidance, and confidence to stay financially resilient throughout retirement. Caroline Abrahams, charity director at Age UK, said: 'We warmly welcome this thoughtful and wide-ranging select committee report, which comes closer to providing a thorough and progressive strategic overview of the issues facing older people on low incomes and proposing workable solutions than anything successive governments have produced in recent years. 'When the Government announced the launch of the Pensions Commission earlier this week, ministers made it clear that its task is to think about the creation of a better system for future pensioners. 'This is necessary and important, but this committee report reinforces the point that there's work to do to improve the situation of today's pensioners on low incomes as well.'


North Wales Chronicle
7 days ago
- Business
- North Wales Chronicle
UK-wide strategy needed to tackle pensioner poverty, says committee
The Government should also decide on – and ensure – a minimum level of retirement income, the Work and Pensions Committee urged. Once set, a plan should be created for everyone to reach that level, it added. Given that the state pension is the core of the Government's offer to pensioners, a guiding principle should be that it provides the amount needed for a 'minimum, dignified, socially acceptable standard of living', the committee said. It urged the Government to commit to a UK-wide, cross-government strategy for an ageing society, that it said would help target support to tackle pensioner poverty. If it does not effectively tackle poverty as one of the causes of ill-health, 'the Government will not be able to achieve its goal of building a health and social care service that is sustainable', the Pensioner Poverty report warned. The report also highlighted longer-term trends that 'threaten to undermine pension adequacy', such as people renting into later life. The committee also called for a pension credit take-up strategy for England by the end of 2025. Despite being worth up to £4,000 a year, the take-up of pension credit has hovered between 61% and 66% for a decade, with an estimated 700,000 households being eligible but not claiming, the committee said. A taper to pension credit should also be considered to 'mitigate the cliff-edge effect' for those who currently miss out, the report said. Under current rules, some pensioners just above income thresholds could end up worse off than those with slightly lower incomes, it added. Pension credit can 'passport' recipients to other benefits such as housing benefit, council tax support, the warm homes discount, a free TV licence, help with dental treatment and, in winter 2024/25, the winter fuel payment. The committee argued that reliance on top-ups such as pension credit and housing benefit is not sufficient to ensure people do not fall below the poverty line. The report said: 'After a decline in pensioner poverty in the 2000s, the number of pensioners in relative low income started to rise again from 2010. This has been exacerbated by increases in the cost of living since 2021.' It continued: 'The number of people of pension age living in relative poverty (below 60% of median income) is 1.9 million or 16% of pensioners. 'Measures which factor in the cost of living show that between 2008/09 and 2022/23, the number of pensioners in households below the Minimum Income Standard (MIS)—the amount needed for a minimum dignified socially acceptable standard of living—rose from 1.5 to 2.8 million. 'The proportion of pensioners below 75% of MIS (where the risk of material deprivation increases substantially) rose from 5.9% in 2021/22 to 9.5% in 2022/23. 'In practice, this means cutting back on essentials, like food, energy use and seeing friends, in an attempt to manage costs. Health experts explained the implications for health. Financial hardship can accelerate the ageing process, making it more likely that an older person will enter hospital or need care.' The committee said that in some places, organisations are working together towards shared objectives. The report continued: 'However, not all areas do this. We heard that it would help to have a national cross-government strategy for our ageing society and older people. 'This could provide a framework to hold the different partners to account for their role in delivering the agreed outcomes. It could also ensure that central government departments developed policy with shared objectives in mind.' Committee chairwoman Debbie Abrahams said: 'To boost incomes, the Government needs to come up with a strategy to increase pension credit take-up. It's a scandal that so many have missed out for so many years, often through an aversion to claiming benefits altogether, or lack of support. 'The fairness of the pensions credit eligibility criteria where if you are a penny above the threshold, you miss out on thousands of pounds, also needs to be looked at. 'Ultimately, the Government should decide what it thinks is enough for a dignified retirement, and then work to ensure that all pensioners are on at least that level. 'Faced with a combination of high energy costs, ill-health and ever higher rates of pensioners in more costly privately rented accommodation, tackling pensioner poverty is not simply a DWP (Department for Work and Pensions) issue. So, we're calling for a nationwide, cross-government strategy for an ageing society that should be rooted in equity and wellbeing.' On Tuesday, Chancellor Rachel Reeves said that a review into raising the state pension age is needed to ensure the system is 'sustainable and affordable'. The Government review is due to report in March 2029 and Ms Reeves said it was 'right' to look at the age at which people can receive the state pension as life expectancy increases. The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age. A Government spokesperson said: 'Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament. 'We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year. 'But we know there is a real risk that tomorrow's pensioners will be poorer than today's, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.' Emma Douglas, wealth policy director at Aviva, said: 'The pensions industry – alongside a revitalised Pensions Commission – has a critical role to play in helping people save for retirement and then turn their hard-earned pension pots into lasting financial security. 'With many people likely to manage their money well into their 90s, we must ensure those savings work harder and stretch further – especially as later life can bring complex challenges like cognitive decline.' She said that Aviva and Age UK were exploring a 'mid-retirement MOT' to help give people tools, guidance, and confidence to stay financially resilient throughout retirement. Caroline Abrahams, charity director at Age UK, said: 'We warmly welcome this thoughtful and wide-ranging select committee report, which comes closer to providing a thorough and progressive strategic overview of the issues facing older people on low incomes and proposing workable solutions than anything successive governments have produced in recent years. 'When the Government announced the launch of the Pensions Commission earlier this week, ministers made it clear that its task is to think about the creation of a better system for future pensioners. 'This is necessary and important, but this committee report reinforces the point that there's work to do to improve the situation of today's pensioners on low incomes as well.'