Parliamentary committee urges higher Universal Credit for 66-year-olds

A parliamentary committee has recommended increasing Universal Credit payments for 66-year-olds as the state pension age rises from 66 to 67. The Work and Pensions Committee said the change should be considered as a temporary measure to reduce hardship for people who cannot remain in employment.

The committee stated that evidence shows the longer wait for state pension payments will harm 66-year-olds with health issues or in physically demanding jobs. It noted that many in this group may need to rely on the standard Universal Credit rate of around £425 a month for an extended period.

Committee recommendations The report said increasing Universal Credit for all recipients in the year before state pension age would have a greater impact in reducing poverty than other options. The committee proposed using Universal Credit because it could deliver support quickly while longer-term measures are developed.

The committee acknowledged that work incentives should be considered but described the proposed increase as modest. It added that pension credit is only available after people reach state pension age, leaving many pre-pensioners dependent on savings.

Regional and health factors The report highlighted that ill-health and disability are concentrated in deprived areas with fewer job opportunities. It said the effects of the pension age increase will be uneven, with people in these areas facing longer waits and shorter periods of pension receipt due to lower life expectancy.

Committee chair Debbie Abrahams said more than half of people are not in paid work in their mid-60s and face barriers including ill-health and age discrimination. Andrea Barry of the Centre for Ageing Better called for a coordinated approach across pensions, work, benefits, and health.