A new report from Independent Age, based on research conducted by Public First, highlights the significant impact that increasing the take-up of pensioner benefits could have on reducing poverty among older people and improving health outcomes.
Independent Age believes that everyone should be able to afford to live well in later life, with a social security system that provides enough financial support to meet essential living costs and maintain dignity. However, the report highlights that too many older people are currently missing out on benefits they are entitled to.
According to the report, around 1.7 million older people in the UK are living in poverty, while only 62% of those eligible for Pension Credit claimed it in 2023/24. As a result, an estimated 1.2 million older people missed out on £2.5 billion in Pension Credit alone. Take-up of other key means-tested benefits, including Housing Benefit and Council Tax Reduction, also remains below acceptable levels.
The research found that increasing take-up of Pension Credit, Housing Benefit and Council Tax Reduction could benefit around 2.5 million pensioners on low incomes. It estimates that 280,000 older people could be lifted out of poverty, representing a 15% reduction in pensioner poverty, while a further 770,000 people would have more money available to help meet everyday living costs, even if they remained below the poverty line.
The report also identifies wider societal benefits. By increasing pensioner incomes, older people may be better able to access healthcare earlier, helping to prevent more serious health issues and reducing demand for acute health and social care services. Independent Age estimates that improving benefit take-up could generate savings of between £600 million and £790 million each year for health and social care services in England, representing a return on investment of 14–18%.
Independent Age concludes that improving take-up of all pensioner entitlements should be a strategic priority. It recommends that the UK Government develops and publishes a comprehensive all-entitlements take-up strategy, with clear targets, improved measurement and accountability, and practical action to remove barriers that prevent older people from claiming the support they are entitled to.
The report also argues that increasing benefit take-up alone will not eliminate poverty in later life. Independent Age calls on the UK Government to review whether current pensioner entitlements provide an adequate income and to work with the Pensions Commission to build cross-party consensus on what constitutes a dignified standard of living in retirement and the role of the State Pension and wider social security system in achieving it.
The findings reinforce the importance of ensuring that older people not only know about the financial support available to them but are also able to access it easily. Improving awareness and take-up of benefits has the potential to make a meaningful difference to the financial wellbeing, health and quality of life of hundreds of thousands of older people across the UK.
