MPs Urge Government To Raise Universal Credit For 66-Year-Olds Facing Longer Wait For State Pension

A cross-party committee of MPs has urged the Government to consider increasing Universal Credit for people aged 66, warning that the rising State Pension age risks pushing some older people into serious financial hardship during what should be a more secure stage of life.

The State Pension age in the UK is currently rising from 66 to 67. The change is being phased in for people born on or after April 6, 1960. Those born between April 1960 and March 1961 will reach State Pension age at 66 plus a set number of months, while people born on or after March 6, 1961, will not become eligible until they turn 67.

The Work and Pensions Committee has now backed calls for additional support for 66-year-olds who are not yet old enough to claim the State Pension but may no longer be able to remain in work. MPs said ministers should consult on raising Universal Credit for this age group as a short-term measure, with the aim of introducing support by the end of the year while longer-term solutions are developed.

Universal Credit is a means-tested benefit for people of working age who are on low incomes, unemployed, or unable to work. However, the committee warned that the current level of support may be inadequate for many people in their mid-60s, particularly those with poor health, caring responsibilities, limited savings, or a history of physically demanding work.

At the centre of the debate is a difficult question: what happens to people who have worked for decades but are unable to keep going until the State Pension begins? For some, the answer may be another year of financial strain, uncertainty, and pressure on savings they had hoped would support them in retirement.

The committee said there is evidence that the longer wait for the State Pension could harm some 66-year-olds who cannot realistically continue working until 67. MPs warned that a growing number of people may have to rely on the standard rate of Universal Credit, around £425 a month, for a longer period, even as their health needs become more complex.

In its report, the committee said that for many people, the extra year before State Pension entitlement may become a year of hardship. It warned that some older people could be left living on working-age benefits that do not reflect their needs, while being forced to use savings originally intended to help them through retirement.

The committee concluded that increasing Universal Credit for all recipients in the year before State Pension age would have a stronger effect in reducing poverty and hardship than more limited alternatives. MPs described the proposal as a temporary but practical response to the rise in the State Pension age from 66 to 67, which has already begun to affect some people.

They argued that using Universal Credit would allow support to be delivered relatively quickly. Although the committee acknowledged concerns about work incentives, it said the proposed increase would be modest and focused only on the year before State Pension age. MPs added that many people who are already outside the labour market in their mid-60s are unlikely to return to paid employment.

The issue is particularly sensitive because Pension Credit, which provides extra support to people on low incomes, is only available once someone reaches State Pension age. This means that people just below that threshold can find themselves in a difficult gap: too old, unwell, or disadvantaged to secure stable work, but not yet old enough to receive pensioner support.

For many families, this is not an abstract policy problem. It is the reality of watching a parent, relative, neighbour, or former colleague struggle after a lifetime of contribution. The phrase “lottery of life” used in the debate captures the emotional weight of the issue. Some people reach their mid-60s with good health, private savings, secure housing, and flexible work. Others arrive at the same age with worn-out bodies, caring duties, insecure finances, and few realistic employment options.

MPs also highlighted deep regional inequalities. The committee noted that poor health and disability are more common in deprived areas, where job opportunities may also be more limited. This means the impact of a higher State Pension age is not felt evenly across the country.

For people in less deprived areas, working an extra year may be inconvenient but manageable. For others, particularly those in low-income communities, it can mean another year of trying to survive on limited support while dealing with ill-health or reduced employment prospects. The committee also pointed out that people in more deprived areas often have shorter life expectancy, meaning they may receive the State Pension for fewer years once they finally qualify.

The report warned that the previous rise in the State Pension age from 65 to 66 had serious consequences, with absolute poverty rates among 65-year-olds more than doubling. MPs said the Government must avoid repeating the same pattern as the age rises again.

Debbie Abrahams, chairwoman of the Work and Pensions Committee, said people approaching pension age should not be forced into an impossible choice between continuing to work despite poor health or remaining in poverty while waiting for the State Pension.

She said this is not the later life that anyone would want for themselves or their loved ones after decades of work and contribution. She argued that pre-pensioners often face greater barriers to employment, including health problems, age discrimination, lack of retraining opportunities, and limited chances to move into suitable work.

According to Ms Abrahams, more than half of people are not in paid employment by their mid-60s, and many are unlikely to find work if the labour market has already effectively written them off. She said additional social security support is essential to reduce the combined effects of inequality, ageing, and the rising State Pension age.

Andrea Barry, deputy director for work at the Centre for Ageing Better, said the committee’s proposal should be seen as a short-term measure to ease an immediate problem. She added that, in the longer term, the Government needs a joined-up approach across pensions, employment, benefits, and health.

Ms Barry said the mid-60s should not become a period of heightened financial insecurity for growing numbers of older people. She called for employment and skills reforms to be designed with older workers in mind, alongside better careers guidance, financial planning advice, and stronger support for people living with health conditions.

Caroline Abrahams, charity director at Age UK, welcomed the committee’s findings. She said too many people approaching State Pension age are already in a very difficult financial position and should not be left struggling until they qualify for pensioner support.

She argued that allowing people who are realistically unlikely to work again to struggle financially until they reach State Pension age is both wasteful and unfair. Age UK has raised concerns about this issue for many years, and the charity welcomed the committee’s call for the Government to act quickly.

A spokesperson for the Department for Work and Pensions said the Government welcomed the Work and Pensions Committee inquiry into the transition to State Pension age and would consider the report and its recommendations in due course.

The DWP said that, as of February 2026, just 0.02% of the Universal Credit caseload was aged 65 or 66. The department added that a range of support is available for people who have not yet reached State Pension age, including Universal Credit, other means-tested benefits, and disability-related benefits.

The spokesperson also said the Pensions Commission is examining how to ensure secure retirements for future pensioners.

However, the committee’s report is likely to intensify pressure on ministers to address the financial gap faced by some people in the year before retirement. The debate is not simply about numbers on a benefits spreadsheet. It is about whether the welfare system recognises the lived reality of older people who are no longer fit for work but still too young, under current rules, to receive pension support.

As the State Pension age continues to rise, the Government faces a difficult balancing act. It must manage public finances and reflect longer life expectancy, while also recognising that not everyone ages in the same way, with the same health, income, or opportunity.

For those who can keep working, a later pension age may be manageable. But for those already exhausted by years of low-paid or physical work, the extra wait can feel less like a policy adjustment and more like a final hurdle placed at the hardest possible moment. That is why the call to increase Universal Credit for 66-year-olds is likely to remain a major issue in the wider debate over fairness, retirement, and dignity in later life.