Tag: Independent Age

Burnham sets out plans for a new National Care Service – but pensioners to pay

The Prime Minister announced a new settlement for older people yesterday: a state pension ‘that rises every year’, no personal care charges and a high-quality National Care Service to give peace of mind in later life

  • A National Care Service will be established in the next Parliament, providing free personal care for older people, based on need rather than ability to pay.  
  • The current State Pension Triple Lock will be maintained – but only until April 2030. From then, it will be adjusted so the State Pension rises by at least inflation or 2.5% each year with a new link built in to keep pace with earnings over time. 
  • Savings under the adjusted Triple Lock will be used for a new National Care Service, with Baroness Casey to recommend how and when it is built up.

The Prime Minister announced a ‘new settlement’ for older people: a state pension that rises every year, no personal care charges and a high-quality National Care Service to give peace of mind in later life.

The vision set out today draws a line under decades of drift with a clear plan to fix the system so that people can receive the dignity and security they need.   

The Prime Minister warned today that if we don’t fix our broken social care system, it will eventually break the NHS too. There are huge costs to the NHS both through pressures on A&Es and an inability to discharge patients home because of a lack of adequate social care. 

The new National Care Service will be introduced in phases, so its scope can grow as the savings increase from adjusting the Triple Lock, and as workforce and provider capacity are built up. It will be fully funded – and not through borrowing.

Baroness Casey will recommend how this could be done through the work of her independent Commission, which is being informed by public deliberation and ongoing cross-party talks. Her report is due in summer 2027.  

The current Triple Lock will be maintained throughout this Parliament, increasing the State Pension by over £2,000. But from April 2030, the adjusted Triple Lock will mean the State Pension continues to rise by 2.5% or inflation – whichever is higher – and by even more if that is required to maintain its value relative to earnings.

This will ensure the living standards of pensioners keep up with the rest of the population. For example, if the value of the State Pension is around a third of average earnings by 2030/31, as average earnings rise, the State Pension will rise in line with that too.

This adjusted Triple Lock will mean that if inflation spikes, pensioners will be protected. If wages rise, pensioners will share in that, with the State Pension tracking earnings over time. Nobody’s pension will ever go down. And State Pensions will be put on a sustainable footing for decades to come.

The Government will legislate for the change during this Parliament. 

Adjusting the Triple Lock is estimated to reduce state pension spending by £15 billion a year by the end of the 2030s, rising to £50 billion a year by 2050.

The UK will continue to have one of most generous approaches to increasing the State Pension in the world, according to the government – but British pensioners have the LOWEST STATE PENSIONS IN EUROPE.  

The plans provide a credible pathway to delivering a National Care Service that will put an end to years of neglect where vulnerable people have been left at risk as a result of Westminster’s failure to face up to the difficult issues. The new system will include personal care, helping with things like eating, bathing and using the toilet. 

Following the Prime Minister’s vision for the core principles of the service, Baroness Casey’s independent Commission will continue its work to develop recommendations on how to deliver it in practice, and will soon begin the next phase of its ‘Big Conversation on Care’ to make sure everyone gets the chance to feed in their views. 

Around three in four adults over 65 are expected to need care and support during later life, with one in seven facing costs of more than £100,000. Currently, whether someone pays for care varies significantly by condition.

Two people with the same need for help with everyday tasks may face different rules if one needs support linked primarily to a health condition and the other to social care. The result is a broken system where the most vulnerable in society are at risk of losing everything just to access basic care. 

The service will not cover bed and board, for which existing means-tested council contributions will remain. Councils will continue to exclude the value of a home from financial assessments where a partner or dependent relative lives there, and deferred payment agreements will remain available to help eligible people avoid having to sell their home during their lifetime to meet care costs.  

Tackling the broken social care system is part of the Prime Minister’s pledge to take on the most difficult issues facing the country that have been left ignored by politicians for too long. ‘By facing up to the challenges that others have said are intractable, like fixing the youth unemployment crisis and ending rough sleeping, this government is working to bring back hope’.

REACTION:

Scotland’s First Minister John Swinney commented: “In Scotland, we provide free personal care for older people without punishing pensioners. Andy Burnham removing the triple lock would simply repeat the mistakes of Keir Starmer.

“The blame for the UK’s financial mess lies with successive Westminster governments, not pensioners.”

Helen Walker, Chief Executive of Carers UK said: “We applaud the Prime Minister for his absolute commitment to fundamentally reform our broken social care system and to build a National Care Service.

“It is a critical issue that affects us all. Almost everyone will give or receive care at some point in our lives. Yet 16 years since the last White Paper set out the fundamentals of what a National Care Service might look like, the complexity and problems with social care have grown far worse. Change has never been more urgent, and the Prime Minister has grasped this.

“Recent Carers UK research has found a staggering 1.1 million people have left employment to care within the last two years, the equivalent of 1500 people a day. One in five employees (20%) now has a caring responsibility.

“Great social care has the ability to transform lives, help people to stay in work and also create valued jobs.  As Baroness Casey’s work moves forward, we want to see the Prime Minister’s commitment today become a really ambitious settlement, with unpaid carers at its heart, that will truly deliver, providing people and families with the high-quality support they need.”

Responding to Prime Minister Andy Burnham’s speech at Labour Conference today and his commitment to the creation of a National Care Service, Kirsty McHugh, Chief Executive of Carers Trust, said: “The Prime Minister’s plan to build a National Care Service is bold, ambitious, and undoubtedly long overdue. For years, we have been calling for a sea change in social care, and it’s refreshing to finally hear those calls echoed back from the very top of Government.

“In the midst of planning for a National Care Service, we must ensure the needs of unpaid carers are heard and acted on. The demands of caring can have a devastating impact on people’s finances, wellbeing, and ability to live fulfilling lives.

Caring is an innate part of human life and to be celebrated, but many carers provide care for 100+ hours a week, with some delivering support around the clock – without pay or comprehensive support. We cannot forget the biggest providers of care – the millions of unpaid carers.

“We know from our 135+ strong network of local carer services that there are so many pockets of brilliant voluntary sector work taking place across the country. We want to see a National Care Service that builds on these foundations and places the needs of unpaid carers at its heart.

“Though the sector has heard commitments to reform time and again, never before has a Prime Minister placed social care so clearly at the front and centre.

“We are determined to work with the Government and other organisations across the system to ensure that a National Care Service goes beyond political promise and becomes a reality this time.” 

Joanna Elson CBE, Chief Executive at Independent Age said: “It was extremely welcome to hear the Prime Minister talk about what older people living on a low income are going through.

“Too often they are left out of the conversation, yet 1.7 million people over State Pension age are currently living in poverty, and another one million teeter dangerously on the edge.

“We were pleased, too, to hear the Prime Minister’s pledges to lower energy bills and improve housing standards – which will be welcomed by older people in financial hardship. 

“Before a double lock is implemented, we need to know that the UK Government has fully considered, and put in place protection for, older people on low incomes. Any changes that are made to the State Pension must ensure no current or future pensioners on a low income lose out.  

“It is important to see action to tackle pensioner poverty directly.  For instance, we would love to see a public take-up strategy to drive up the numbers receiving vital entitlements like Pension Credit and Housing Benefit.

“In the spirit of the Prime Minister’s speech, everyone in this country needs to know they can rely on a strong social safety net if they reach older age without an adequate income.” 

More misery for millions as winter energy prices to rise by 4%

From 1 October to 31 December 2026 energy prices will go up by 4% for a typical household who use electricity and gas and pay by Direct Debit.

Energy price cap rates 1 October to 31 December 2026

You are not affected by the changes to the energy price cap if you have changed to a fixed rate tariff.

Electricity rates

If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 26.32 pence per kilowatt hour (kWh). The daily standing charge is 54.83 pence per day. This is based on the average across England, Scotland and Wales. It does not include VAT from 1 October 2026 to 31 March 2027./

Gas rates 

If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 7.97 pence per kilowatt hour (kWh). The daily standing charge is 29.68 pence per day. This is based on the average across England, Scotland and Wales and includes VAT at 5%.

Changes to VAT from 1 October 2026*

The government has removed VAT from electricity bills from 1 October 2026 to 31 March 2027.

As a result, VAT is not included in electricity bills for people covered under the energy price cap between 1 October and 31 December 2026. You will still pay 5% VAT for gas.

This means that all households that are covered by the energy price cap (on a default tariff) will pay less for their electricity. This also applies to some small businesses.

Some people who use more electricity than gas, or only use electricity, will have a bigger reduction in their bill.

We have included this change in the figures we have published. You might not see the full impact of the VAT reduction on electricity in your bill, because gas wholesale prices are still high due to global events.

Costs cannot be compared directly to previous periods because of this change.

Unit rates and standing charges

You can get and compare by area 1 October to 31 December 2026 and 1 July to 30 September 2026 energy price cap unit rates and standing charges.

You can also find and compare all the energy price cap (default tariff) levels.

Read about who the price cap protects and how the energy price cap is calculated in energy price cap and standing charges explained.

Why energy prices are changing

This increase is a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East. However, prices are still very much below the height of the energy crisis in 2022. The government then put a limit on bills of £2,500.

Managing your energy bills and tariff

You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by:

  • standard credit (payment made when you get your electricity and gas bill)
  • Direct Debit
  • prepayment meter
  • Economy 7 (E7) meter

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have. 

You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier. 

You could also save money if your supplier offers half price or lower cost electricity at weekends. Most people who have a smart meter or other low carbon technologies can take advantage of these offers.

Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.

Energy price cap level dates

We review and update the price cap level on how much an energy supplier can charge for each unit of energy, including the standing charge, every 3 months. The levels for the next periods will be announced by:

25 November 2026 – period 1 January 2027 to 31 March 2027

23 February 2027 – period 1 April 2027 to 30 June 2027

26 May 2027 – period 1 July 2027 to 30 September 2027

We may publish before these dates if we need to because of external reasons.

“Households set to have their hopes dashed… but there is an escape route.”

Richard Neudegg, director of regulation at Uswitch.com, said: “Households holding out for a last-minute reprieve on rising energy bills set to have their hopes dashed, with predictions suggesting a 4% increase in the October price cap.

“With continued instability in the Middle East, higher energy costs are now looking very likely throughout winter as a third consecutive price cap hike is predicted for January.

“Those still on price cap tariffs who don’t take action before October should brace themselves to pay even more for their heating, with standard gas prices likely to be a staggering 26% higher than they were last year.

“But there is an escape route. The best fixed deals on the market right now undercut this prediction by around 12%, with the cheapest priced at £1,522 for a typical home.

“Don’t suffer higher winter bills when you don’t have to – a decent fixed tariff beats these rates and protects you from further price rises. Every week spent on a standard tariff is another week paying higher rates than you need to.”

Commenting on today’s Ofgem energy price cap announcement, Independent Age Chief Executive Joanna Elson, CBE said: “Today’s Ofgem energy price cap announcement will heap more pressure on the already stretched budgets of the 1.7 million older people in the UK living in poverty and the million others teetering on the brink. 

“With winter on the horizon, older people on low incomes will once again be forced to take drastic action to keep themselves warm as rising energy bills eat away at already inadequate incomes. 

“Each winter we hear heartbreaking testimony from older people wearing winter clothing to bed to fend off the cold, being forced to choose between putting food on the table or using their heating, and some are abandoning their cold homes altogether to find warmth in public buildings.  

“We are urging Andy Burnham’s government to protect people on low incomes, including people in later life, from relentless energy price hikes. Boosting the Warm Home Discount from £150 to £400, funding this increase directly and improving targeting would make an immediate difference to those who cannot make ends meet. 

“In the long-term, the development of a more comprehensive targeted energy social tariff is essential to protect low-income households from the all too regular price shocks that are pushing them deeper into financial hardship and poverty.”

State Pension income tax exemption: Independent Age responds

Responding to the Prime Minister’s commitment to exempt state pensioners with no additional income from income tax, Morgan Vine, Director of Policy and Influencing at Independent Age said: “Recommitting to exempting the State Pension from income tax is a welcome signal that the new Prime Minister is listening to the concerns of older people on low incomes.

“However, questions remain about how the policy will be implemented across a complex pensions system where one solution does not fit all.

“Different versions of the State Pension mean some older people receiving a lower State Pension and a small private pension would be dragged into the tax system, while others receiving only the State Pension will be exempt, despite the amount they receive being largely the same.

“Clearly, this is a situation that needs to be addressed so no older person on a low income loses out.

“Every day we hear from older people with chronic money worries who are making difficult decisions to make ends meet, from rationing their energy and water use to skipping meals.

“We look forward to receiving clarity from the UK Government on how the State Pension tax exemption will work to protect all pensioners on low incomes.”

Independent Age: Total take up of state support would reduce pensioner poverty by 15% 

Would also save the NHS and social care services over half-a-billion pounds

  • Research shows that 100% take up of key benefits would cut numbers of pensioners in poverty by 280,000
  • Due to health impacts, full take-up would also save the NHS and social care services in England £790 million a year
  • Independent Age recommends the UK Government publish a take-up strategy for financial entitlements to ensure all older people are receiving everything they should be

New research from national charity Independent Age shows that full take-up of three key financial entitlements could lift 280,000 older people out of poverty across the UK, reducing pensioner poverty by 15%. 

This includes Pension Credit, pensioner Housing Benefit and Council Tax Reduction. The analysis was carried out by the research agency Public First.

The report released today, entitled ‘The only way is up: The impact of improved entitlement take-up on pensioner poverty and healthcare spending’ also shows that increasing take-up of these entitlements to 100% could help improve older people’s health, leading to a reduction in health and social care public spending by up to a colossal £790 million a year in England. 

Independent Age is calling on the UK Government to publish an all-entitlements take-up strategy for the UK. This should include a strong commitment and targets to increase take-up. 

The number of older people in poverty in the UK is rising, with around 1.7 million in relative poverty in 2024/25, which is an increase of 200,000 compared to the year before. Another one million live close to the poverty line. 

Despite this, the charity says that too many eligible older people are missing out on money set aside for them. Over one in three (38%) of those eligible for Pension Credit are not receiving it, and around 230,000 older households are missing out on Housing Benefit. 

Official take-up figures of Council Tax Reduction are not produced, however the report analysis indicates that over a million pensioner households could be missing out on this vital support. 

The organisation is also calling for the Pensions Commission to agree on what an adequate income in later life looks like, and the UK Government to commit to ensuring everyone receives this. 

Concerningly, full take up would also provide an additional 770,000 older people with more vital income, but they would still remain in poverty, indicating that financial entitlements and the State Pension alone is not always adequate to live on.

Joanna Elson CBE, Chief Executive of Independent Age said: “Our social security system was designed as a safety net for all of us but the evidence is clear, it is failing older people in poverty. Money that has been set aside is not reaching the older people who need it and at a time with increasing costs, the impact of this is devastating. 

“Through our helpline, we hear often from older people who are having to skip meals or only wash once a week to make ends meet. This is unacceptable. 

“Older people on a low income have been left to struggle for too long. That’s why we urgently need a strategy to ensure everyone receives the support they are entitled to and an agreement on what an adequate income looks like in later life for all of us as we age.

“With the upcoming changes in leadership, this is a golden opportunity for the UK Government to reverse the worsening picture of poverty in later life.”

Independent Age’s report found that three groups especially benefitted from increased take-up of these entitlements. These were: older people living alone, older renters and those on the old State Pension. This is due to a combination of likely higher initial costs such as housing or energy, and a lower income.

Valerie’s Story

Valerie, 68, from the Isle of Wight

“Once the rent was paid, along with Council Tax – more than £150 a month even with the single person discount – there wasn’t enough left. I had to cut back on everything. I lived on £1 meals from Iceland because they were cheap and filling, even though I knew they weren’t very nutritious.

I relied on a local community pantry where £5 bought roughly £15 of food. I couldn’t afford to put the heating on. My house is all electric and it was simply too expensive. I spent winters wrapped in blankets, drinking cups of instant soup to keep warm, and sometimes slept downstairs so I didn’t have to walk through cold rooms at night.”

Valerie called Independent Age and, while she wasn’t eligible for Pension Credit, an adviser supported her to start receiving Housing Benefit and Council Tax Reduction, which she hadn’t previously been aware of.

After starting to receive these entitlements, Valerie described the impact this had on her life: 

“Life is so much better now. I still budget carefully, but I’m not living on my credit card anymore. I can buy fresh vegetables, cook proper meals and freeze portions so food lasts longer.

“I can travel to the mainland to see family, and I enjoy the things that matter to me, such as going to the local theatre and being part of the choir.

“I called the Independent Age Helpline at a time in my life when I didn’t know where to turn. The support I received has made a dramatic difference to my daily life. I nearly didn’t make that call – but I’m so glad I did.

“Before that call, I was surviving day to day. Now, I feel like I’m living again.”

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Chancellor to announce ‘Great British Summer Savings’ – a UK-wide scheme to help families enjoy this summer

Cost of living boost with free bus travel for children and targeted food tariff cuts

  • Free bus travel for children throughout August, helping families across England get out and explore 
  • Comes as products including biscuits, chocolate, dried fruit and nuts set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices. 
  • Move is latest in government drive to support families and help ease pressures on household budgets.

Families travelling this summer will benefit from free bus travel for children as the Chancellor ramps up efforts to help with the cost of living (we already have this in Scotland – Ed.)  

The Chancellor is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required, and at no cost to families.  

It is part of a scheme called ‘Great British Summer Savings’. The Chancellor will set out more details today on how the Government will support families and businesses this summer.

Prime Minister Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back. 

“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier. 

“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”

It comes as the government prioritises protecting households and businesses from rising costs, and the announcements today will build on the work to cut energy bills, protect motorists and crack down on unfair profiteering.  

This month the government has delivered £117 off energy bills on average, increased the minimum wage again and frozen rail fares and prescription charges, thanks to the choices the Chancellor made at the Autumn Budget.  

As the war in Iran puts pressure on prices at home, the government has stepped in with a tax cut for hauliers to keep our shelves stocked and economy moving, extended the 5p fuel duty freeze to protect motorists at the pump, and emergency relief for families in rural communities who have been hit by a sharp increase in the price of heating oil.  

The Chancellor will say that in an era of global conflict, this government has the right economic plan, as economic indicators showed the UK beating the forecasts again this week. The UK was the fastest-growing economy in the G7 at the start of this year, and Monday the IMF upgraded our growth forecast for 2026. Yesterday we saw inflation falling faster than expected, thanks to the action taken at the budget to keep energy prices down. 

Chancellor of the Exchequer Rachel Reeves said: “My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August. 

“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

Transport Secretary Heidi Alexander said: “Free bus travel for every child in August means parents can plan days out, visit loved ones and make the most of the holidays without the added financial pressure. 

“We’ve already seen what’s possible – in the West of England, the Mayor’s free travel scheme is making a real difference, particularly for young people in the most deprived communities. That’s exactly the kind of impact we want to deliver for families right across England this summer. 

“This builds on the work we’re already doing to make buses better for everyone – from the £3 bus fare cap and the landmark Bus Services Act, to our £3 billion investment in local services and frozen rail fares for the first time in 30 years. We’re making sure public transport works for people, not against them.”

Free bus travel for children will run from 1 to 31 August and covers participating local bus services across England. This could save a family with two children who make a weekly return trip at a £1.50 child fare £27 in August. 

It comes following a successful pilot ran last summer by the Mayor for the West of England, Helen Godwin. 

Helen Godwin, Mayor of the West of England, said: “Kids Go Free in the West of England has seen around 1.4 million free journeys over the summer, Christmas, and Easter holidays since my election last year. 

“It’s brilliant that, after we have invested devolved funding to make a difference that people across the West can see and feel, the government is rolling out Kids Go Free nationally this August! 

“There’s been a huge increase in public transport use through our offer already, including children and families travelling on our new green buses. Bus travel from our lowest income areas doubled year-on-year last summer, with kids able to just hop on board and no registration needed.

“I’m so excited to see Kids Go Free return again for the school summer holidays – helping more children and young people to explore the best of what the West has to offer.”

This funding also includes support for bus services that have experienced increased costs, recognising the vital service they provide particularly for school children, pensioners and those living in rural communities. The Government will work with the sector to decide how this support can be allocated with the greatest impact.  

Separately, as part of wider efforts to reduce pressure on prices, the Government is launching a business engagement exercise, with a view to making further targeted cuts to agri-food tariffs, suspending tariffs on over 100 types of products including biscuits, chocolate and dried fruit and nuts. 

The expected benefit to consumers is more than £150 million a year. The full list of products will be published next week, with business engagement commencing next week. As per previous commitments, the list takes account of domestic production and food security and does not include any significant UK primary agriculture production. This is on top of the expected consumer benefits from agri-food tariff suspensions, announced at the end of April, of around £100 million to £400 million each year. 

Today’s announcements build on action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage. Yesterday (May 20) the Government announced extending the 5p fuel duty cut until end of year.

Michelle Ovens, CBE, CEO & Founder of Small Business Britain, said: “It’s fantastic to see the Chancellor’s commitment to additional funds for the free fares scheme.

“Giving children across the country the opportunity to travel freely during the summer holidays is vital in broadening aspirations, building life experiences, and encouraging young people to envision a future without boundaries.”

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “This is a welcome move to help more families to get out and about by bus this summer and highlights the importance of affordable public transport in easing cost-of-living pressures on hard-pressed households.

“Investing in affordable, reliable bus services is one of the most cost-effective ways of improving people’s quality of life and tackling rising energy costs year-round.”

Lydia Horbury, CEO of passenger champions Bus Users UK said: “Making bus travel free for children throughout August is a hugely welcome step that will help families, encourage greater use of public transport and give young people more independence and opportunity over the summer holidays. 

“For many households, even small savings can make a real difference, and this initiative removes both cost and complexity by making travel simpler and more accessible. It is also a wonderful opportunity for more families to experience the convenience and value of local bus services first hand. 

“We hope this not only supports communities over the summer but also inspires lasting confidence in public transport and encourages the next generation to see buses as an easy and sustainable way to travel.”

Jason Prince, Director of the Urban Transport Group, said: “Buses are the most used form of public transport, essential in connecting people to opportunities. 

“Building on the successful fares offers of many of our member transport authorities, Kids Go Free is a welcome and timely intervention – helping to make public transport more affordable over the summer holidays, and supporting families and young people to get to where they want to go.”

THERE ARE SOME WORDS OF CAUTION, HOWEVER …

Helen Barnard, Director of Policy and Research at Trussell said: “We are deeply concerned about the rising cost of living and the risk this will drive even more people into hunger and hardship, piling pressure on food banks that are already under immense strain.

“This package of summer support will do little to reassure people already struggling to pay their bills and put food on the table that the government has grasped the potentially dire impact of coming price rises, or is prepared to protect people at most risk of being forced to the doors of food banks.

“We expect energy bills to start rising this summer, continuing into the winter, with food and other costs also expected to rise over the year into winter and especially in early 2027. The government must urgently prepare a package of targeted measures to protect people on the lowest incomes from being forced into severe hardship as these cost pressures take hold.

“Last year, food banks in the Trussell community provided more than 2.6 million emergency food parcels across the UK. This isn’t right. The UK government must put appropriate plans in place to protect people on the lowest incomes from bearing the brunt of further spikes in prices and ensure that everyone can afford the essentials.

“The government made a UK manifesto promise to end the need for emergency food. We will not see this become a reality without further bold action to build on the progress it has started.”

Director of Policy and Influencing at Independent Age Morgan Vine said: “The cost of living support measures announced today to reduce the price of some food and travel are positive, but do not address the biggest issue weighing on older people living in financial hardship right now, energy bills.

“It’s inevitable that energy prices are going to soar as we move through summer and into the colder months.

“People in later life on low incomes  tell us they are increasingly anxious and are already cutting back on essentials. Many simply cannot afford any further increases in their bills. We urge the UK Government to announce as soon as possible additional targeted energy support for low-income households. 

“People of all ages on low incomes urgently need this reassurance so that they have a chance at keeping their homes warm during the colder months.”

Britain is undersaving for retirement, warns Pensions Commission

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

  • Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
  • Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
  • Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.

There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.

Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.

This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.

Its findings include:

  • Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
  • 45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
  • Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
  • Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
  • On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.

The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.

Pensions Commissioner, Baroness Jeannie Drake said: “Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.

“This demands a renewed national settlement on pensions.

“Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.

“The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.”

The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.

Minister for Pensions, Torsten Bell MP, said: “Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.

“The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.”

The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.

It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually.

The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.

Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said: “The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.

“We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.

“Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.

Rocio Concha, Director of Policy and Advocacy at Which? said: “Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge.

“It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.

The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.

“Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.”

Julian Mund, Chief Executive of Pensions UK, said: “Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.

“Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.

“We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.”

Caroline Abrahams, Charity Director at Age UK: “We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today.

“This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.

“There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall.

“We look forward to working with the Commission as it explores the best solutions for future pensioners.”

Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.

Louise Hellem, Chief Economist, CBI, said: “The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.

“As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time.

“It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.”

TUC General Secretary Paul Nowak said: “Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.

“Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.

“The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.”

Nausicaa Delfas, Chief Executive of The Pensions Regulator, said: “The pensions system is still unfinished business with too many people on track for an inadequate retirement income.

“That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.

Independent Age Chief Executive Joanna Elson, CBE reacts to the Pension Commission’s interim report: “We welcome the Pension Commission’s interim report, which clearly sets out the challenges future pensioners will face in securing an adequate income.

“It is positive that the Commission recognises the vital role of the State Pension and social security entitlements in supporting those on low incomes. The findings that certain groups, including women and disabled people, are at greater risk of under-saving are concerning, but not unexpected. They echo our own research, which shows that these groups are more likely to experience poverty in later life.

“With 1.7 million older people currently living in poverty and 1 million more hovering precariously on the edge, it is clear change is needed to ensure a future where everyone in later life has a dignified and financially secure older age.  

 “We look forward to continuing to work with the Commission as it develops its final recommendations.”

Charities call for end of rule locking 70,000 pensioners out of vital financial support

National charity Independent Age and 12 other organisations1 have teamed up to send an open letter to the Secretary of State for Work and Pensions Pat McFadden, calling for an end to the mixed age couples rule. 

The rule, introduced in 2019, could be preventing around 70,000 low-income couples from receiving entitlements specifically for older people until they bothreach State Pension age, leaving affected couples up to £7,000 worse off a year.

As well as the range of organisations calling for change, new polling from Independent Age shows that a large majority of the UK public back ending the rule, with 62% saying that couples where one person is over State Pension age should receive pension-age entitlements2.

Together the organisations are urging the UK Government to reverse the mixed-age couples rule, to allow couples to claim pensioner benefits, like Pension Credit, once the older partner reaches State Pension age.

Data from 2019 shows that 12% of couples who could be eligible for Pension Credit have an age gap of more than 10 years, meaning the older partner may have to wait an extremely long time to access pensioner entitlements, adding to their financial strain. While couples in this situation are eligible to receive Universal Credit, this is paid at a lower rate and is not designed to meet the needs of people over State Pension Age.

In the letter the organisations say the issue is urgent:

‘Nobody should be punished financially because of who they love. Yet as many as 70,000 older people are missing out on the financial safety net designed to protect pensioners, just because of their partner’s age. 

‘This is urgent. With the incoming rise in State Pension age, more and more couples on a low income will face an even longer wait to receive the entitlements they need due to the mixed-age couples rule.’

Independent Age Chief Executive, Joanna Elson CBE said: “Every day we hear from older people struggling to make ends meet, and for thousands of mixed-age couples the system is making that struggle even harder.

“This rule is unfairly locking around 70,000 older people out of vital pension-age support simply because their partner is younger.

“The UK Government has created a flawed system where two people of the same age can be treated completely differently depending on who they love. The financial support they are missing out on could be the difference between heating and eating or paying the rent.

“Twelve organisations have joined us in calling on the UK Government to act now and scrap the mixed-age couples rule, to ensure all older people on a low income get the financial security and dignity they deserve once they reach pension age.”

In the letter the organisations also express concern over ‘the assumption that all younger partners are able to be financially responsible for their household’ and how this ‘does not reflect reality for many couples. In lots of cases, a younger partner will have health conditions or unpaid caring responsibilities that could mean they are unable to work.’

Lynn, 62, and her husband David from Eastbourne have a five-year age gap and have been unable to access the support they need as a result: She said: “David and I met on a blind date. We’ve been married for nearly 24 years.

“Although David is my full-time carer, we’ve had a hard time getting any financial support because he’s five years older than me. We used to receive Employment and Support Allowance, but once my husband reached State Pension age, it stopped.

“David and I trudged around four different places, including the council, to try and find out what we were entitled to and we were told we could claim Pension Credit. But after seven months of receiving Pension Credit, we got a letter saying there had been a mistake and we weren’t entitled to it because we are a mixed-age couple. We were told to apply for Universal Credit instead.

“All this happened when we were in the middle of moving house and our Pension Credit payment was due. I remember thinking: Now what are we going to do? and being so worried as we literally had no money for our move. We just couldn’t understand why we were told we were eligible to claim Pension Credit and then the payments were suddenly stopped.

“For the first time ever, we had to turn to a food bank to get by. If it wasn’t for our children, I don’t know what we’d have done. They helped us get through this very stressful time in our lives.”

Jan Shortt, General Secretary, National Pensioners Convention said: “To treat people differently on the basis of who they fall in love with is nonsense. 

“Mixed age couples are suffering financially because they cannot access the support they need.  Decisions made by the government penalise mixed age couples and this must be addressed to enable them to be financially secure in the future.”

The organisations who have signed the letter alongside Independent Age are:

Age Scotland

Ageing Without Children (AWOC)

Age UK

Civil Service Pensioners Alliance

National Federation of Occupational Pensioners

Northern Irish Commissioner

National Pensioners Convention (NPC)

Re-engage

Unison Retired Members

National Association of Retired Police Officers (NARPO)

Welsh Older People’s Commissioner

Wise Age

For more information on Independent Age’s mixed aged couples campaign, see: 

Mixed-age couples locked out of vital support | Independent Age

Anti-poverty campaigners call for a new Minimum Income Guarantee and a boost in Scottish Child Payment

LATEST POVERTY STATISTICS PUBLISHED

Campaigners have called for a Minimum Income Guarantee and an immediate increase in the Scottish Child Payment that will lift thousands out of poverty.

Poverty Alliance chief executive Peter Kelly was reacting to new Scottish Government figures on poverty and inequality.

He said: “Poverty is a profound injustice that robs people of what they need to build a decent life for themselves and a better future for our country. These figures show that MSPs in the next Scottish Parliament need to invest much more in the social foundation we all rely on.

“Because of changes in the way the figures have been worked out, we have to be cautious about the comparisons we make. But they show some welcome progress over the last few years, with the overall number of people in poverty falling by about 130,000 since 2021/22, and the number of children in poverty from 540,000 to 420,000.

“But we have serious concerns that those numbers could increase again, as people face yet another energy crisis and the prospect of rocketing living costs across the board.

“The figures show that there are 630,000 people in severe poverty – with children making up 150,000 of them. It is simply wrong that so many of our fellow citizens find themselves pushed so close to deprivation.”

The Poverty Alliance repeated its calls to boost the Scottish Child Payment to £55 a week.

Peter Kelly said: “Our new MSPs will have a legal responsibility to make sure that fewer than 10% of Scotland’s children are in poverty by 2030/31. Today’s figures show that 21% of our children are living with that daily injustice.

“We simply cannot allow this to continue. The Scottish Government can help by strengthening the support we give to households with children, and the UK Government can help by scrapping the unjust benefit cap.

“And over the course of the next Parliament, we will continue to build public support for real Living Wages and a Minimum Income Guarantee that will make sure everyone has what they need to use their talents for the benefit of themselves, their households, and all of us.”

Responding to today’s statistics on household incomes and poverty which show one in five children in Scotland are trapped in poverty, Chief Executive of Children First, Mary Glasgow said: “A small drop in child poverty does not change the urgent need for action to tackle Scotland’s childhood emergency and meet Scotland’s 2030 child poverty target.

“It is not acceptable that one in five children in Scotland are living in poverty. It has a devastating impact on children’s mental health, wellbeing, education and prospects that can last into adulthood. Reducing child poverty is an investment in Scotland’s future, improving public health, strengthening communities and reducing public costs in the long term.

“In the run up to the election, every political party must prioritise policies that support families, strengthen incomes and uphold Scotland’s commitment to eradicating child poverty.”

Commenting on today’s latest official poverty statistics, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today’s statistics show there are still too many pensioners living in poverty in Scotland. 

“As the national charity supporting older people on low incomes, we know that older people are skipping meals, washing in cold water and not turning the heating on. This is wrong and a social injustice.  

“As the Holyrood elections approach, all political parties must prioritise action to reduce pensioner poverty. This should start with a national strategy, a plan setting out the key actions to reduce poverty in older age and act as a map for how we will get there. 

“They must also pledge to improve the social security support for older people on low incomes, and commit to supporting older people improve the energy efficiency of homes. 

“We also urge the UK Government to introduce a social tariff for energy across the whole of the UK to reduce the cost of heating for older people on low incomes. The UK Government must also improve the take-up and adequacy of the payments they administer to older people. 

“The levels of poverty in later life are too high in Scotland, and with around 1.7 million older people now in poverty across the UK, today’s figures must be a call to action.” 

TRUSSELL commented: “It’s encouraging that child poverty is falling in Scotland. It shows the power of investing in social security.

“But it’s not acceptable that 1 in 5 children are locked in poverty. All parties must commit to decisive action to ensure every child has a decent start in life.”

Cara Hilton, Senior Policy and Public Affairs Manager at Trussell, said:  “Today, the Family Resources Survey has revealed a heartbreaking injustice; persistently high numbers of people across Scotland are trapped in the grip of severe hardship.  

“While the latest figures indicate that some people are getting back on their feet, the numbers of people facing hunger in our communities are still too high. As we find ourselves yet again facing uncertain times, we know that progress can be too easily undone. People just surviving could once again be pushed over the edge if the price of food and bills increases. 

“Food banks in our community provided more than 220,000 food parcels in Scotland in 2025 – that’s 64% more than in 2015. These new figures from the government confirm that 500,000 people are facing hunger across Scotland. This isn’t right.  

“With the Holyrood election just six weeks away, Trussell is calling on all political parties to commit to building a Scotland where everyone can afford the essentials and where every child has a decent start in life.

“This should include immediate investment to increase the Scottish Child Payment to £40 a week, increasing to £55 by the end of the next Holyrood session. We need the Scottish government to build firmer foundations for people on the lowest incomes so all of us have the support we need to thrive.”  

Latest poverty statistics published

Two poverty statistics publications were released by the Scottish Government yesterday. Poverty and income inequality in Scotland 2022-25 covers the period up to March 2025, presenting poverty rates for children, working-age adults and pensioners.

Methodological changes have been applied to the statistics in this report as the Department for Work and Pensions have linked the source data from the Family Resources Survey to administrative records on social security benefits.

As a result, there have been revisions to previously published poverty rates back to 2021/22, and further revisions are planned as part of on-going development work. Users should therefore note that caution is needed when interpreting the statistics to assess trends over time.

The most recent three-year averages for 2022-25 show that:

  • Around 17 per cent of Scotland’s population (940,000 people) were living in relative poverty after housing costs. This was 15 per cent (840,000 people) before housing costs. Poverty rates for Scotland’s population have been broadly stable for around a decade.
  • Children are more likely to be in relative poverty: 21 per cent of children are in relative poverty after housing costs, compared to 13 per cent of pensioners and 18 per cent of working-age adults. Children in relative poverty are more likely to be in a working household; 75% of children in relative poverty have at least one person working in the household while 25% have no-one in household working.
  • The median household income before housing costs was £707 per week and after housing costs was £636. Prior to 2021/22, median incomes had increased slowly but steadily since the recession in 2008/09.

Persistent Poverty in Scotland 2010-24 presents statistics on people who live in relative poverty for at least three out of the last four years. The latest figures show that around one in ten people in Scotland (11 per cent) were in persistent poverty, after housing costs, between 2020 and 2024. Persistent poverty rates were highest for children (17 per cent), and lower for working-age adults (10 per cent) and pensioners (9 per cent). 

Persistent poverty is an important measure because the longer someone is in poverty, the more it impacts on their health, well-being, and overall life chances. These impacts can affect an individual throughout their lifetime. 

Further information on the two publications is set out below:

This Poverty and Income Inequality in Scotland publication contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes statistics on household food security. The data comes from the Department for Work and Pensions’ Family Resources Survey (FRS), Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.

Statistics from this report have been revised, back to 2021/22, due to a methodology change. The FRS is now linked to administrative data, which means the majority of FRS responses for benefit income and tax credits have been replaced with data from DWP’s administrative sources. Further years of linked estimates back to survey year 2018/19 will be published in summer 2026 in a follow up release. The absolute poverty measure has also been amended as a result of the data linkage; full details can be found in the report.

This publication has been designated as official statistics in development in line with the other devolved administrations in order to acknowledge the changes to the methodology and that there will be a period of flux as further methodological changes are implemented. Future changes are announced by DWP in their release strategy, which is updated periodically as plans develop. A statistical blog has been published on the Scottish Government website to inform users of developments.

Figures are presented in the main report are three-year averages of each estimate. Three-year estimates are better to identify trends over time. The four child poverty measures in the Child Poverty (Scotland) Act are based on single-year figures. These statistics are available in the reference tables and in the child poverty summary. The single-year estimates exhibit more year-on-year fluctuation compared to the three-year averages and should be interpreted with caution.

This Persistent Poverty in Scotland publication presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2020 to 2024. Statistics from this report are badged as official statistics. 

Poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.

Official statistics are produced in accordance with the Code of Practice for Statistics.

Key poverty measures:

Relative poverty: A person is in relative poverty if their current household income is less than 60% of the current UK median. Relative poverty statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.

Absolute poverty: A person is in absolute poverty if their current household income is less than 60% of the UK median in a given reference year, adjusted for inflation. Absolute poverty statistics fall if low income households are seeing their incomes rise faster than inflation. Due to the structural break introduced by the data linkage the reference year for absolute poverty has been moved from 2010/11 to 2024/25. 

Combined low income and material deprivation identifies the proportion of children in households with incomes below 70% of the median UK income and going without certain basic essential goods and services.

Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years may be affected by it throughout their lifetime.

The poverty publications present poverty figures before and after housing costs. Before-housing-costs figures are a basic measure of household income from earnings and benefits. After-housing-costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs.

Further information on income and poverty statistics within Scotland is available.

Poverty+and+income+inequality+statistics+2022_25Download

Letters: Make Tackling Pensioner Poverty a Priority

Dear Editor,

The Holyrood elections are fast approaching. Here’s why all candidates must make tackling rising pensioner poverty a priority.

In Lothian, 22% of older people told us they have skipped a meal, and 65% told us they are cutting back on heating and utilities. Across the region, around 13% of people over State Pension age survive on a very low income of under £15,000. None of us deserve to live our later life like this.

Many older people in Lothian also tell us they are feeling unheard, with 64% revealing that they don’t feel represented by the Scottish Government.

Without action, the number of older people in poverty across Scotland could rise by 20,000 by the end of the next Scottish Parliament. At Independent Age, we’re calling on all candidates to commit to a national pensioner poverty strategy in their 2026 Scottish Election Manifesto.

Not only is it the right thing to do, but it’s backed by the older public, with 83% of all older people in Lothian supporting the Scottish Government in doing this. We also want to see the next Scottish Government help older people feel listened to and represented, by creating an Older People’s Commissioner.

Together, we can make Scotland the best place in the world to grow old.

Debbie Horne,

Policy and Public Affairs Manager at Independent Age

Independent Age comments on latest private renting statistics

The Scottish Household Survey (SHS) is an annual survey of over 10,000 households. It covers a range of different topics including your home, your neighbourhood and your views on local public services.

The Scottish Government, local councils and various charities use the results to improve the lives of people in your area and across Scotland. The survey has been running since 1999 and is independent of all political parties.

The latest survey was published yesterday.

Commenting on statistics released today in the Scottish Household Survey Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “Older people now make up 13% of all private renters across Scotland.

“Privately renting in later life can be difficult, especially when living on a low, fixed income. Almost one in three (32%) older private renters live in poverty. With a growing proportion of the private rented sector made up of older people, it’s vital the Scottish government ensures renters of all ages, including those who are older, can live securely.

“With the Holyrood election fast approaching, we’re calling on all parties standing for election to commit to policies to support older renters in their manifesto. Over 25,000 pensioners are on the waiting list for a social home in Scotland, with almost three quarters (74%) waiting over a year.

“The next Government must build more affordable social housing. They must also improve access to, and increase funding for, Discretionary Housing Payments. These can help make up the shortfall between Housing Benefit and rental costs.

“They are vital to avoid older people making dangerous cutbacks on essentials like food and heating to be able to afford their rent, but most older people who could potentially access them are unaware they exist.”