WPC launches inquiry into pensioner poverty

The Work and Pensions Committee (WPC) has launched an inquiry into pensioner poverty, looking at the impact of pensioner poverty and its potential mitigations, and the costs that should be covered by the state pension and other pension age benefits.

The announcement comes after Secretary of State for Work and Pensions, Liz Kendall's first appearance in front of the committee, when she confirmed that the second phase of the pensions review will “be looking at future outcomes, including pension adequacy”.

The committee said that this had left open the question of the adequacy of state pension benefits, which often make a "significant" contribution to retirement income, even for those with some private pension savings.

It also pointed out that, according to the government's recent analysis, published in a letter to the committee, around 50,000 pensioners could find themselves in absolute poverty after housing costs as a consequence of the changes to winter fuel payment eligibility.

“The decision by the government to restrict winter fuel payment eligibility to those in receipt of some means-tested benefits, like pension credit, has brought the issue of pensioner poverty into sharp focus," WPC chair, Debbie Abrahams, said.

“We understand the rationale as part of the effort to restore the UK’s finances, but it’s concerning that potentially tens of thousands would sink below the poverty line without other kinds of support.

"Just one falling into it is a tragedy. It gives just a hint of how many pensioners could be struggling, but are we doing enough for them?"

In particular, the inquiry will be looking at the current state of pensioner poverty, how it impacts groups across lifespan, and what essentials the state pension and other pension age benefits should cover.

It will also be considering the impact of pensioner poveryt on the NHS and social care, as well as whether there is sufficient data to enable efficient targeting of support, or delivery mechanisms that allow effective targeting.

Abrahams added: “The effects of living in poverty are also likely to hit different groups of people in different ways. How do different cohorts cope, pay for their food and heat their homes, and what are the consequences for the NHS and social care?

“We want to hear from experts and pensioners at the sharp end to examine the situation to inform the debate around the pensions review, and make some recommendations to government that will ensure people get the support they need.”



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