MPs warn 66-year-olds could face 'a year of hardship' as state pension age rises
A committee of MPs have urged the Government to look at increasing universal credit for those in this age group as the state pension age rises to 67.
The Government has faced calls to increase Universal Credit for 66-year-olds as the state pension age rises to 67, with MPs warning many people could face financial hardship during the extra year they must wait for their pension.
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The Work and Pensions Committee has backed proposals to boost Universal Credit for those aged 66, urging ministers to consult on the change and introduce it by the end of 2026 as a temporary measure while longer-term support is developed.
MPs said many people who are unable to continue working until 67 risk being left on the standard Universal Credit rate of around £425 a month, forcing some to rely on retirement savings before they can access their state pension.
The report said: "For many, this will be a year of hardship, on inadequate working age benefits, potentially depleting savings they were relying on to support them in retirement."
It added: "On balance we support increasing the level of universal credit (UC) for all recipients in the year before state pension age because it has a greater impact in reducing poverty and hardship.
It added: "On balance we support increasing the level of universal credit (UC) for all recipients in the year before state pension age because it has a greater impact in reducing poverty and hardship.
"We recommend it as a short-term approach, to mitigate the impact of the increase to 67, which has already started.
"We propose using UC on the basis that it should enable support to be provided quickly."
Committee chair Debbie Abrahams said: "We can’t just allow people who are already struggling as they approach pension age to be forced to choose between continuing work in poor health or prolonging their poverty as they wait for their state pension to kick in."
A Department for Work and Pensions spokesperson said: "We welcome the Work and Pensions Select Committee inquiry on the transition to state pension age and will consider their report and recommendations in due course.
"As of February 2026, just 0.02% of the universal credit caseload was aged 65 or 66."
"A range of options for extra support are available for those that have not reached state pension age, such as universal credit and other means-tested and disability-related benefits, while the Pensions Commission is examining how we can ensure secure retirements for tomorrow’s pensioners."
Caroline Abrahams, charity director at Age UK, said: "We’re delighted that the select committee has recognised that far too many people approaching their state pension age find themselves in a very difficult financial position."
"Allowing people who are realistically never going to work again to struggle to make ends meet until they hit state pension age is a senseless waste and an issue we’ve been highlighting for many years, so it’s fantastic that the committee is strongly advising the Government to address it and to do so quickly."