The Department for Work and Pensions (DWP) has shared key financial measures that the UK Government has in place to help prevent older people from living in poverty in later life, following a query from Labour MP, Rachael Maskell.
Pensions Minister, Alex Burghart, explained that the UK Government is “committed to action that helps to alleviate levels of pensioner poverty” and said more than £134 billion is forecast to be spent on benefits for people of State Pension age over 2022/23. This amounts to 5.4% of GDP and includes spending on the State Pension which is forecast to be over £110bn in 2022/23.
Mr Burghart also highlighted how the full yearly amount of the basic State Pension has risen by over £2,300 since 2010. He also said: “The [UK] Government has committed to implementing the Triple Lock in the usual way for the remainder of the Parliament.”
One of the biggest ways people over State Pension age can boost later life income is by claiming Pension Credit.
The minister explained: “There are currently around 1.4m pensioners claiming some £5bn of Pension Credit which provides financial support to help with day-to-day living costs for people over State Pension age and on a low income and acts as passport to a range of additional support, including help with rent and Council Tax, as well as energy bills.”
He also said that workplace pension automatic enrolment will help reduce the risk of poverty in retirement, sa
In addition to these current measures, to reduce the risk of poverty for future pensioners, automatic enrolment into workplace pensions has transformed pension participation for millions of people.
He said: “To date, over 10.7 million people have been automatically enrolled into a workplace pension, with over two million employers complying with their duties.
“With these changes, an estimated additional real terms £33 billion was saved into workplace pensions in 2021 compared to 2012.”
He also referenced the recent rollout of Mid-Life MOTs to help people in their 40s and 50s assess their retirement plans.
Mr Burghart said: “The Mid-Life MOT helps people plan for employment in later life and a financially secure retirement, through reviewing their finances, health and skills.
“Following the success of tests delivered through ten Local Enterprise Partnerships in 2021, the Government has announced a £5m expansion of the Mid-life MOT initiative.
“As part of the expansion, Mid-life MOTs will be delivered online, in the private sector and through the Department for Work and Pensions national network of Jobcentres.”
Find out more about Mid-life MOTs here.
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