Pensioners: Cost of Living

The Government is honouring its commitment to the Triple Lock with a recent 4.1% increase to the basic State Pension, the new State Pension, and the standard minimum guarantee in Pension Credit. Over this Parliament (2029/30), the OBR forecasts that the Government spending on the State Pension will rise by over £31 billion.

Pension Credit provides extra money to help with living costs for people over State Pension age and on a low income. The Government is taking significant steps to raise awareness and maximise take-up. We want to ensure as many people as possible have access to this support and urge pensioners to check their eligibility. Pension Credit will passport them to receive other benefits – including help with rent, council tax, fuel bills and a free TV licence for those over 75. Our drive to increase Pension Credit take up has successfully boosted applications with the Department receiving around 235,000 Pension Credit applications in the 30 weeks since July 2024 and making 117,800 new Pension Credit awards over the same period, a 64% increase or 45,800 extra awards compared to the same period in the previous year.

Low-income pensioners and others struggling with the cost of living should contact their local council to see what further support may be available to them. They may be able to receive support from energy support programmes or through the Household Support Fund, a scheme providing discretionary support to those most in need towards the cost of essentials, such as food, energy and water.

The Government has extended the Household Support Fund in England by a further year, (until 31 March 2026) – with funding of £742 million provided to enable this extension in England, plus additional funding for the devolved Governments to be spent at their discretion, as usual.