Government rejects calls for new framework to tackle pensioner poverty

The government has rejected calls for a new cross-departmental framework to tackle pensioner poverty, instead reaffirming its commitment to existing measures and initiatives in its response to the Work and Pensions Committee’s (WPC) Pensioner Poverty: Challenges and Mitigations report.

The response follows the committee’s wide-ranging inquiry into pensioner poverty, which culminated in a July report urging ministers to adopt a national strategy to reduce pensioner poverty across the UK.

In its response, the Department for Work and Pensions (DWP) said it “remains steadfast” in its commitment to supporting pensioners and providing “the dignity and security they deserve in retirement”, but did not commit to introducing any new overarching strategy or framework.

Instead, the government pointed to current policies, including the triple lock, automatic enrolment, and ongoing efforts to improve the take-up of pension credit.

“The state pension remains the foundation of state support for older people,” the DWP stated, adding that spending on pensioner benefits is forecast to reach £174.9bn in 2025/26 - equivalent to 5.8 per cent of GDP - and to rise by around £31bn over the course of the parliament.

It argued its continued commitment to the triple lock “is helping today’s pensioners and providing the pensioners of tomorrow with certainty”.

While the committee had urged ministers to establish a cross-government strategy for an ageing society, with equity of health and wellbeing at its core, the government declined to do so.

Instead, it cited work already underway through existing initiatives, including the Get Britain Working white paper, the 10-year health plan to improve access to care for older people, and the new Casey Commission on adult social care, which is due to report next year.

Addressing concerns over the gender pensions gap, the government confirmed that the latest figures, published in July, showed the gap stood at 48 per cent.

It emphasised that it remained committed to publishing updates on that cycle, adding that the issues of gender inequality and state pension adequacy were embedded within the terms of reference for the newly revived Pensions Commission, which aims to assess adequacy, sustainability, and fairness across the pensions system.

The commission is expected to submit its final recommendations in 2027.

The government also rejected the committee’s recommendation to establish an Older People’s Commissioner for England, saying it would first consider evidence from the Welsh model before deciding whether to replicate it.

Several of the committee’s other proposals for reform were also met with caution.

The government confirmed that it was reviewing ways to improve links between carer’s allowance and pension credit and exploring how to simplify the process for pensioners with caring responsibilities, although it said legislative change would be required.

The department also dismissed the idea of introducing a taper for pension credit to reduce the so-called “cliff-edge” effect, arguing that such a move would add “far greater complexity” to the system and undermine simplification efforts achieved through the new state pension.

It reiterated that universal credit claimants approaching state pension age were already informed about pension credit entitlement through automated messages and staff support, with additional outreach via 'Midlife MOTs' for claimants aged 50 and over.

Finally, the government confirmed that an impact assessment of the forthcoming increase in the state pension age (SPA) from 66 to 67 would be published after the change is complete in 2028, when sufficient data would be available to assess outcomes.

It follows news that the WPC has launched a new inquiry on the transition ahead of the scheduled increase in April next year.

In conclusion, while the government said it “recognises the complex, longstanding causes of pensioner poverty”, it maintained that its current combination of state pension provision, automatic enrolment, and targeted support measures already provided “a robust system for retirement provision in the decades ahead”.

However, WPC chair, Debbie Abrahams MP, previously described pensioner poverty as “a growing national challenge requiring a coordinated response across government”.

Commenting on the government's response to the report, Abrahams said that while it pointed to a number of - not unwelcome - standalone policies, it lacked a "guiding star" for all departments to ensure the country's health as it edges towards retirement.

She warned that, therefore, it potentially leaves people exposed to "falling between the cracks."



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