- Annual financial wellbeing index shows little to no progress for pensioners in poverty across Scotland.
- Numbers of older people on a low income cutting back on food and energy remain worryingly high.
- Independent Age calls for political action to prevent a generation left in poverty.
Independent Age’s second annual index into older people’s financial wellbeing in Scotland shows little progress on key indicators of pensioner poverty.
The ‘Older People’s Economic Wellbeing Index: Scotland 2026’, commissioned by the national older people’s financial hardship charity and conducted by the Diffley Partnership is a nationally representative poll of 1,800 people aged 66 and over. The research is repeated annually to track trends over time, and this is the second year that the research has been conducted.
The 2026 Index shows that one in five older people in Scotland have a household income of less than £15,000 a year. Of this group:
- more than 1 in 2 have skipped meals.
- 8 in 10 have cut back on heating.
- almost half have housing costs that are, or are becoming, unaffordable.
UK and Scottish Government statistics show that 130,000, or one in eight, older people in Scotland are currently living in poverty.
Morgan Vine, Director of Policy and Influencing at Independent Age said: “Action on pensioner poverty is at risk of stalling, with a generation of older people left trapped in poverty and making dangerous cutbacks as a result.
“Our latest Index shows that, in many areas, little progress has been made in the last year, including older people still feeling unrepresented by politicians, being weighed down by mounting costs, and not feeling their incomes and the financial support available is enough.
“With an ageing population it is vital that politicians across the political spectrum recognise the need for dedicated and sustained action to ensure older people living on a low income can live a decent and dignified life.
“This is a golden opportunity for the new Scottish Government to act now, to change the picture and create a much more positive reality for all of us as we age.”
Independent Age is calling for the introduction of a Pensioner Poverty Strategy to coordinate efforts to drive down poverty among pensioners.
The Index looks at five research areas: income and financial wellbeing, costs and cutbacks, housing, quality of life and political representation.
Income and financial wellbeing
Just one in 20 (6%) of all older people were confident that the State Pension would be enough to cover basic living expenses in the future.
Awareness of most social security payments has remained mostly static since 2025. Of all the people on a low income of under £15,000 a year, 1 in 5 are not aware of Pension Credit (19%), and the number is the similar for Housing Benefit (20%). One in eight are not aware of Council Tax Reduction (14%).
Only around half (54%) of older people agreed that they were confident they were receiving all the financial support they were entitled to, and less than half (45%) agreed they were confident they know how to apply for the financial benefits they were entitled to.
Costs and cutbacks
Eight in ten (77%) older people on a low income said that they have cut back on heating, and more than a third say they cannot afford to keep their home warm. More than half have skipped meals.
Significant proportions of older people across all incomes are also worried about energy usage. 21% cannot afford to keep their home warm enough, 26% are not content with the energy efficiency of their home, 29% say their current energy bills are not affordable and 13% are not confident they can meet the cost of their energy over the next 12 months.
Housing
More than 1 in 4 older people are living in a home that is becoming, or is, unaffordable to them. The housing affordability picture is considerably worse for older people on a low income than the general older population, with almost half (48%) saying their housing costs are, or are becoming, unaffordable.
Political representation
Most older people in Scotland do not feel well represented by political bodies and representatives. This generally has remained unchanged since the 2025 Index, where feelings of lack of political representation were high. One significant decline in feeling has been towards the UK Government. These have eroded particularly strongly – this research wave shows a five-percentage-point increase in the proportion who say the UK Government do not represent them (‘not very’ or ‘not at all’).
Recommendations
Independent Age recommends:
- All political parties commit to working cross-party to address pensioner poverty.
- The Programme for Government commits to introducing:
- a national Pensioner Poverty Strategy.
- a Warm Homes Programme for older people, to reduce energy bills through improving energy efficiency.
- The Scottish Government’s Benefit Uptake Strategy refresh takes a holistic approach to maximising the income of older people by taking action to improve take-up of devolved and reserved entitlements.
- Improving the social security system and support available to older people in Scotland.
- The Scottish Government guarantee the right to a secure and affordable home, by improving access to, and increasing funding for, Discretionary Housing Payments and building the affordable social homes older people need.
- An Older People’s Commissioner for Scotland is created.
- The UK Government ensures reserved social security payments are set at an adequate rate.
