The Work and Pensions Select Committee has urged the Department for Work and Pensions (DWP) to consider increasing financial support for some older Universal Credit claimants as the State Pension age continues to rise. The recommendations focus on people who may have to rely on working-age benefits for longer before becoming eligible for their State Pension.<\/p>\n\n\n\n
The committee argues that people approaching retirement often face greater barriers to employment and may struggle financially while waiting to reach State Pension age. According to the committee’s report<\/strong>, ministers should examine whether additional support is needed for those affected by the gradual increase in the qualifying age.<\/p>\n\n\n\n The State Pension age is currently 66 for both men and women, but it is being increased gradually to 67 over the next two years. The committee warned that this change could leave more people depending on Universal Credit rather than Pension Credit during the period before they qualify for their pension.<\/p>\n\n\n\n The Work and Pensions Select Committee, chaired by Labour MP Debbie Abrahams<\/a>, has called on the Government to review the support available to people nearing retirement. Among the options suggested is increasing Universal Credit payments for 66-year-olds because of concerns that more people could fall below the poverty line before reaching State Pension age.<\/p>\n\n\n\n According to the committee, the increase in the State Pension age means growing numbers of 66-year-olds born before 1961 could remain on the standard Universal Credit<\/a> allowance of around \u00a3425 per month<\/strong> for longer instead of becoming eligible for Pension Credit.<\/p>\n\n\n\n Debbie Abrahams said people approaching retirement should not be forced to choose between continuing to work despite poor health and remaining in poverty while waiting for their State Pension. She added that people in their mid-60s often face ill health, age discrimination and limited opportunities <\/strong>to retrain, noting that more than half are no longer in paid employment and are unlikely to find work after being “effectively written off”.<\/p>\n\n\n\nCommittee Raises Concerns over Financial Support before Retirement<\/strong><\/h2>\n\n\n\n