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.”