State Pension Warning: Many Retirees Struggle on DWP Payments Alone
New research has issued a stark warning for state pensioners who depend entirely on Department for Work and Pensions (DWP) payments, as living costs continue to escalate due to global factors like the Iran War.
Growing Reliance on State Pension
According to a study by Royal London, approximately 12 per cent of adults over state pension age rely solely on the state pension for their income. This highlights a significant portion of the elderly population facing financial vulnerability.
Sarah Pennells, a consumer finance specialist at Royal London, emphasized the challenges: “For many pensioners, living on the state pension alone is becoming increasingly difficult.”
Inadequate Payments for Daily Needs
Pennells detailed the financial strain: “Hundreds of thousands of those who get the new state pension don’t receive the full amount. For those who do get the full new state pension, the £241.30 payment works out at less than £35 a day.”
She added that this amount is insufficient to cover essential expenses such as food, heating, energy, and council tax.
Disparities Between Old and New Systems
The situation is even more dire for those on the old basic state pension system, which affects twice as many pensioners. While some may receive larger payments from the state second pension, those on the basic state pension only get £184.90 per week.
Pennells noted: “While the state pension has risen in cash terms, the cost of everyday essentials like food, energy, housing and council tax is still far higher than it was before the cost-of-living crisis, and these are bills people simply can’t avoid.”
Urgent Call to Claim Benefits
Rebecca Lamb, external relations manager at Money Wellness, urged pensioners to explore available support, particularly Pension Credit. She highlighted: “Pension Credit remains one of the most under‑claimed benefits in the UK, with around 910,000 eligible households not claiming it, meaning people are missing out on roughly £2,600 a year on average plus access to other help like housing and council tax support.”
Lamb stressed the importance of this extra income: “For thousands of pensioners this extra income could ease pressure on tight budgets. Given rising costs and the rising incidence of fuel poverty among older people, it’s vital that pensioners and their families are aware of what they’re entitled to and get support to access it, as every pound matters when you’re on a fixed income.”
This warning underscores the urgent need for pensioners to assess their financial options and seek assistance to mitigate the impact of rising living costs.
