MPs Urge Benefit Boost as State Pension Age Rises

The Work and Pensions Select Committee has urged the British government to urgently increase Universal Credit payments for 66-year-olds as the state pension age rises from 66 to 67 between 2026 and 2028. The cross-party group of MPs warns that this shift creates a "financial cliff edge," leaving individuals to rely on a standard monthly allowance of approximately £425 compared to the Pension Credit's guaranteed income of over £1,000.

MPs criticized government ministers for relying on impact assessments more than a decade old. The committee cited evidence that a previous increase to age 66 saw poverty among those awaiting pensions rise from 10% to 24%. To mitigate this, the committee proposed a temporary benefit boost costing roughly £600 million, which is a small fraction of the £10.5 billion the Treasury expects to save from the pension age hike. They have called for this measure to be implemented by the end of 2026.

Advocacy groups have echoed these concerns. Carers UK warned that 26,000 carers could lose approximately £7,011 annually due to the benefit gap, while the Centre for Ageing Better and Age UK highlighted the risk of increased hardship for those unable to work. The Department for Work and Pensions stated it will consider the recommendations, noting that as of February 2026, only 0.02% of the Universal Credit caseload consisted of individuals aged 65 or 66.