Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to tackle pensioner poverty.
We have a comprehensive package of measures to help pensioners. The State Pension is the foundation of support for older people, and the value of it has been steadily increasing since 2010.
From April, subject to Parliamentary approval, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010; a rise of over £2,300 in cash terms. Over the last two years the basic and new State Pension has increased by over 5.6%.
In addition, around 1.4 million eligible pensioners across Great Britain receive around £5 billion annually in Pension Credit, which tops up their retirement income and act as a passport to other financial help, such as support with housing costs, council tax, heating bills and a free TV licence for those over 75.
The overall trend in the percentage of pensioners living in poverty shows a significant fall over recent decades and there are 200,000 fewer pensioners in absolute poverty (both before and after housing costs) than in 2009/10.
Additional support that is available to pensioners includes the Winter Fuel Payment worth up to £300. Cold Weather Payments are payable to those in receipt of Pension Credit and the Warm Home Discount - a rebate of £140 a customer’s energy bill - is available to those in receipt of Pension Credit Guarantee Credit. From 2022/23 the eligibility criteria for the Warm Home Discount scheme will be extended to focus on means-tested benefit recipients including those on pension credit savings credit with the highest energy costs, providing the rebates automatically through the innovative use of data and the rebate will be increased to £150.
Further support for pensioners includes free eye tests and NHS prescriptions worth around £900m every year and free bus passes worth £1bn every year.
We recognise that some people may still require extra support over the winter, which is why vulnerable households across in England can access the Household Support Fund which provides £421 million to help vulnerable people in England. Up to 50% of the Fund is available for councils to spend on households without children, including those of State Pension age.
The Chancellor’s announcement on 3 February of a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23, will also be available to eligible pensioners.