The government has been urged to take action to increase support for pensioners most in need, after research from the Fabian Society revealed that 1.9 million pensioners (16 per cent) are living in poverty.

The report, Mature Decisions: Options for alleviating pensioner poverty, revealed that poverty levels were higher among those who retired before April 2016 on the basic state pension, as the old rules made it more difficult to qualify for the full amount.

However, some pensioners receiving the new state pension also "slipped through the cracks" because of housing costs and National Insurance contribution gaps, leading the report to conclude that the state pension remains “too low”.

The research also showed that pensioner poverty was particularly high for those in rented homes.

Of pensioners who rented, 34 per cent were in poverty, compared to the 16 per cent poverty rate for all pensioners, with 40 per cent of all pensioners in poverty being renters.

The report claimed this was because the state pension was set at a level that assumes that rent and certain utilities are already covered, and not everybody gets the full state pension amount.

While benefits applications have "soared" since the winter fuel payment became means-tested, the report found that most impoverished pensioners don’t claim these benefits, as 77 per cent of pensioners living in poverty receive neither pension credit nor housing benefits.

In addition to this, a freedom of information revealed that nearly 100,000 pensioners have had their pension or benefits reduced by up to a third under a debt repayment plan.

Given this, the Fabian Society called on the government to "urgently" take action to increase support for pensioners most in need.

In particular, the report encouraged the government to consider raising the state pension for older pensioners who receive the legacy state pension, raising means-tested benefits for couples, and using technologies to increase the take-up of benefits.

It also encouraged the government to use future phases of its pensions review to consider the purpose of the state pension and whether it needs to increase to fulfil that purpose in the long term.

Fabian Society senior researcher and report author, Sasjkia Otto, said it was a “common misconception” that are pensioners are well off, masking a significant inequality.

“Neither the state pension nor benefits guarantee protection from poverty, and many are falling through the cracks, especially those renting. This situation could deteriorate as the number of pensioners in this sector increases," Otto continued.

“Our social contract requires dignity in retirement and for future generations to have a living standard at least as good as their predecessors. This is now at risk. But there is also a fiscal case addressing pensioner poverty, as it costs the UK billions in health and social care annually.”

The report noted that pensioner poverty fell from 29 per cent in 1997/98 to 14 per cent in 2010/11 under the last Labour government, with Otto urging Labour to "finish what they started".

“Social security reforms under the last Labour government helped halve pensioner poverty,” continued Otto.

"The 1942 Beveridge report established the principle that the state pension should be set in a way that protects people from poverty. The government should use the upcoming pensions review to consider the purpose of the state pension in the 21st century.”

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