Age UK says we must do more as a country to tackle poverty in later life

With 1.9 million pensioners already living in poverty the Charity fears that unless something changes, the numbers will pass the two million mark in the next few years

As winter bites, Age UK’s Crisis Hiding in Plain Sight campaign urges older people to check if they are entitled to extra financial support

Age UK warns today that there is no room for complacency when it comes to reducing poverty among our growing older population and calls on the Government to do more to address it.

Around one in six – equivalent to 1.9 million - pensioners already live in poverty and the Charity is worried that unless something changes, these numbers are set to pass the two million mark within the next few years.

According to new Age UK analysis of ONS population projection data, there will be an additional 117,000 people of State Pension age in 2026, bringing the total of UK pensioners in 2026 to 12.7 million.

By 2030, ONS population projections show there will be 4% increase or 481,000 more people of State Pension age compared to 2025, amounting to an estimated total of just over 13 million pensioners in the UK by the end of the decade. The worry is that without concerted action to address low incomes the numbers living in poverty will rise too.    

Of course, financial hardship isn’t only influenced by people’s income, it’s also partly determined by their costs.  For those older people who rely on the State Pension as their main source of income, increases in energy, food and rent significantly impact their standard of living. 

Under the latest energy price cap fuel bills are now £1,758 annually (current energy price cap) – accounting for 15% of a full new State Pension and an even greater proportion for the very significant numbers of pensioners who receive less than this amount.  Over 4.4 million people, or 33%, of those receiving a State Pension, receive less in State Pension than the full value of a new State Pension.

Four years into the cost-of-living crisis, Age UK continues to hear about the drastic measures some older people are taking to make ends meet.  New polling for Age UK found one in three – equivalent to 4.3 million – told Age UK they will use less electricity this winter for this reason. Two million said they will be having baths or showers less often and 690,000 said they will be skipping meals this winter to make ends meet. 

As part of Age UK’s Crisis Hiding in Plain Sight campaign, the Charity strongly encourages new and existing pensioners in 2026 to check what financial support they may be eligible for, including Pension Credit – which tops up people’s income to a minimum level and acts as a gateway to other financial help in later life.   The Charity also urges the public to donate what they can to help fund Age UK’s vital work to support older people who are struggling financially, especially in this colder weather.

£3 billion in benefits that older people are entitled to went unclaimed in the most recent year for which figures are available.  Many older people miss out on financial support simply because they assume they won’t qualify, or find it daunting and difficult to complete applications without help.  Age UK’s new research found that one in four – equivalent to 3.2 million older people – do not know which benefits, such as Pension Credit, Attendance Allowance, Housing Benefit and Council Tax Support, which they may be entitled to – yet for those struggling receiving them could make a big difference. 

Successfully claiming Pension Credit in particular can be transformational for any older person whose low fixed income is failing to keep pace with the cost of living. However, take-up of Pension Credit among older people actually went down, rather than up, in the most recent year for which figures are available. 

Age UK analysis of DWP estimates found there is a substantial increase – an additional 120,000 – in pensioners who are not receiving the Pension Credit for which they are eligible.  It also found a substantial increase in the average amount pensioners were missing out on, from £37 to £50 per week, bringing the overall amount of unclaimed Pension Credit to £2.1 billion – a massive and heart-breaking 60% increase on the previous year.  

The latest available statistics show nearly 2 in 5 of those eligible to claim Pension Credit – 38%, equivalent to 1 million pensioners– are missing out on average £50 per week or £2600 per year, with many also not accessing other passported benefits such as council tax discount, help with energy costs, a free TV licence for over 75s and more. 

It’s worth noting that a particularly high number of single women (470,000) are not receiving Pension Credit, far higher than single men (150,000) and couples (200,000).  A higher number of over 75s (570,000) are missing out compared to under 75s (260,000) too. 

That’s why this year, Age UK urges every new and existing pensioner to do three things:  

• Check your eligibility for Pension Credit and other pensioner benefits. 
• Apply early — you can apply up to 4 months before you reach State Pension age. 
• Encourage others to check too, especially those on low incomes or struggling with energy and food costs. 

Caroline Abrahams CBE, Charity Director at Age UK said: “As a country we need to do a lot more to tackle poverty among older people, a social ill set to worsen as our population ages we fear, unless something changes and soon. 1.9 million older people are already living in poverty and we worry that this number will pass the two million mark within the next few years

“Ultimately, we need to move to a position in which older people on low incomes do not have to jump through hoops to claim extra help but are given it automatically. This ought to become possible as government departments get better at sharing data, but for now ensuring everyone who is entitled to more support actually claims it needs more attention.   In particular, successfully claiming Pension Credit can turn your finances around if you are an older person struggling on a low fixed income, but the fact is that on the current figures its take-up has recently gone down rather than up.

“In our view the Government’s Pension Credit take-up initiative needs turbo-charging this year and we urge Ministers to commit to that. Meanwhile, at Age UK we’ll certainly be doing everything we can to spread the word and to support older people who are potentially eligible to claim their due. 

“In 2025, Age UK’s national Advice Line helped 6,006 older people with benefit checks and applying for benefits, identifying more than £36m of support – averaging at £5900 per person. This year our ambition is to exceed that if we can, because we know it’s one of the most important contributions we can make as a Charity. 

“For any older person trying to live on a small retirement income, every single pound counts and even a small weekly top-up could make a tangible difference, so if you reach State Pension age in 2026, or if you’ve been a pensioner for longer and have not yet looked into what you can claim, please contact Age UK to check your entitlement. We’re here to help.” 

Age UK urges anyone who’s struggling and worried about extra costs this winter to contact Age UK on 0800 169 6565 or visit www.ageuk.org.uk/benefits for support. The Advice Line is open 365 days a year (8am – 7pm). Local Age UKs also offer tailored services and support. To find your nearest visit: Age UK services in your area 

Winter can be one of the toughest times of the year for millions of older people who are struggling with health conditions, poverty and living on their own.  As part of Age UK’s Crisis Hiding in Plain Sight campaign, the Charity urges the public to donate so it can support those in most need - especially in colder weather.