The House of Commons Work and Pensions Committee has called on the government to temporarily increase Universal Credit for 66-year-olds, to bridge the gap before they reach State Pension age and become eligible for the more generous Pension Credit, in a report published 11 July 2026. The gap is significant: standard Universal Credit pays £425 a month, against £1,031 a month for Pension Credit. The Committee wants the change consulted on with a view to implementing it by the end of 2026.
TL;DR · LAST REVIEWED 11 July 2026
- The cross-party Work and Pensions Committee's "Transition to State Pension Age" report, published 11 July 2026, calls for a temporary Universal Credit boost for 66-year-olds as the State Pension age rises from 66 to 67 (fully phased in by April 2028).
- The gap between benefits is stark: standard Universal Credit pays £425/month, while Pension Credit guarantees £1,031/month, but Pension Credit only becomes available once someone reaches State Pension age.
- When the State Pension age last rose (to 66, in 2020), poverty in the year before State Pension age more than doubled, from 10% to 24%, pushing 100,000 people below the poverty line. The Committee warns the impact of the rise to 67 is likely to be greater.
- The Committee says extending Universal Credit support to affected 66-year-olds would cost around £600 million of the £10.5 billion the government expects to save from the State Pension age rise overall.
KEY FACTS
- State Pension age is rising from 66 to 67, fully phased in by April 2028
- Standard Universal Credit: £425/month; Pension Credit: £1,031/month (available only from State Pension age)
- Only 42% of 66-year-olds are in paid work; 24% of the poorest 60-65 year-olds are working while frail
- Committee proposal would cost £600 million of the £10.5 billion overall savings from the State Pension age rise
- The government's most recent impact assessments for the State Pension age rise are from 2011 and 2013; none is planned until after the rise is complete
- Committee wants a consultation on the change with a view to implementing it by the end of 2026, as a temporary measure
What the Committee Found
The Work and Pensions Committee's report, Transition to State Pension Age, examined what happens to people in the year or more before they reach State Pension age, as that age continues rising from 66 to 67. The Committee's central concern is a benefits gap: people who are 66 but not yet at State Pension age can only claim the standard rate of Universal Credit, while Pension Credit, a considerably more generous benefit, remains out of reach until they actually reach State Pension age.
| Amount | |
|---|---|
| Standard Universal Credit (66-year-old, pre-SPA) | £425/month |
| Pension Credit (from State Pension age) | £1,031/month |
| Monthly gap while waiting for State Pension age | £606/month |
That gap, the Committee argues, forces many pre-pensioners, particularly those with health conditions, caring responsibilities, or long histories in physically demanding jobs, to either continue working while unwell or run down savings they had set aside for retirement.
The Poverty Evidence
| Measure | Before 2020 SPA rise | After 2020 SPA rise (66 to 67 gap) |
|---|---|---|
| Poverty rate, people in the year before State Pension age | 10% | 24% |
| People pushed below the poverty line | - | 100,000 |
The Committee points to what happened when the State Pension age last rose, from 65 to 66 in 2020: poverty in the year immediately before State Pension age more than doubled, from 10% to 24%, pushing around 100,000 people below the poverty line. With people now waiting a further year for their pension, and many already in poor health, the Committee says the impact "is likely to be greater this time".
Only 42% of 66-year-olds are currently in paid work, according to the report, and around a quarter of the poorest people aged 60 to 65 are working despite being frail, which research shows tends to deepen existing health problems.
The Recommendation
The Committee's central recommendation is a temporary increase to Universal Credit for affected 66-year-olds, to be consulted on with a view to implementing it by the end of 2026 while longer-term support options are developed. The Committee estimates this would cost around £600 million, a fraction of the £10.5 billion the government expects to save overall from raising the State Pension age. The report explicitly argues that "impact on work incentives" should be "outweighed by the imperative to reduce poverty" in this case.
Outdated Evidence, the Committee Says
A separate criticism in the report concerns the evidence base behind the State Pension age rise itself: the most recent official impact assessments date from 2011 and 2013, and no updated assessment is planned until after the rise to 67 is already complete. The Committee describes this as a "significant gap in the Government's understanding" of the policy's real-world effects, and notes it recommended an updated impact assessment in an earlier Pensioner Poverty report last year, a recommendation the government did not act on.
What the Committee Chair Said
Committee Chair Debbie Abrahams said people already struggling as they approach pension age should not be forced to choose between continuing work in poor health or prolonging their poverty while they wait for their State Pension. She said pre-pensioners face greater barriers into employment due to ill health, age discrimination and limited opportunities to retrain, and argued that additional social security support is essential to offset the compounding effects of poor health and the State Pension age increase.
What Happens Next
This is a Select Committee recommendation, not a change in law or policy. The government is not obliged to act on it, though committee reports of this kind carry political weight and typically receive a formal government response within a set period. Anyone currently aged 66 or approaching that age should check their own State Pension date rather than assume any change to Universal Credit rules, since nothing has been implemented yet.
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DISCLAIMER
This article is for general information only and does not constitute financial or benefits advice. Kael Tripton Ltd is an independent editorial publisher and is not authorised or regulated by the Financial Conduct Authority (FCA). This article reports a Select Committee recommendation, not a confirmed change in law; no change to Universal Credit rules has been implemented as of publication. ICO registration ZC135439.
Frequently asked questions
Has Universal Credit actually been increased for 66-year-olds?
No. This is a recommendation from a House of Commons Select Committee, not a confirmed change. The Committee wants the government to consult on the change with a view to implementing it by the end of 2026.
Why can't 66-year-olds just claim Pension Credit instead?
Pension Credit is only available once someone reaches State Pension age. As that age rises from 66 to 67, people turning 66 have to rely on the lower standard Universal Credit rate for longer before Pension Credit becomes an option.
How big is the gap between the two benefits?
Standard Universal Credit pays £425 a month. Pension Credit guarantees £1,031 a month for a single person. That's a gap of roughly £606 a month for someone who would qualify for Pension Credit if only they'd reached State Pension age.
What happened the last time the State Pension age rose?
When the State Pension age rose from 65 to 66 in 2020, poverty in the year immediately before State Pension age more than doubled, from 10% to 24%, pushing around 100,000 people below the poverty line.
When will the State Pension age reach 67?
The rise from 66 to 67 is being phased in and will be fully complete by April 2028.
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