Pensioner poverty in Wales a 'severe issue' says charity
A national strategy to tackle pensioner poverty is needed, according to MPs.
A national strategy to tackle pensioner poverty is needed, according to MPs.
The UK Government should also decide on - and ensure - a minimum level of retirement income, the Work and Pensions Committee urges.
Once set, a plan should be created for everyone to reach that level, it adds.
Pensioner Poverty is a "a real, real issue", says Age Cymru:
Heather Ferguson from Age Cymru, says pensioner poverty is becoming a severe issue in Wales:
"Pensioner poverty is a severe issue. It's something that has been growing.
"We heard from people across Wales who are skipping meals, not having heating on, struggling to make ends meet.
"So it's a real, real issue."
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 says.
It's urging the Government to commit to a UK-wide, cross-government strategy for an ageing society, that it says would help target support to tackle pensioner poverty.
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, according to the committee.
"We're really concerned about what's ahead"
Heather from Age Cymru continues:
"I do think it's probably going to get worse. Because one of the things we're seeing is that people are eating into their savings for retirement or going into their pension pots early.
"That is only going to impact people in later life with having less to live on.
"So we're really concerned about what's ahead.
"Unless something is done now, we do think it's potentially going to get worse."
UK Government: "We know there is a real risk that tomorrow’s pensioners will be poorer than today’s"
A UK Government spokesperson says:
“Supporting pensioners is a top priority, and thanks to our commitment to the Triple Lock, millions will see their yearly State Pension rise by £1,900 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.”
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 argues 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 number of pensioners in relative low income has started to rise again:
The report says: "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 continues: "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 concludes that in some places, organisations are working together towards shared objectives.