State pension age to rise this month as 100,000 Britons could be pushed into poverty under DWP overhaul

Patrick O'Donnell
Wed, 01 Apr 2026 09:38:04 +0000

This month's increase in the state pension age could push 100,000 older Britons into poverty and have "negative consequences" for over 60s, a leading charity has warned.

The Centre for Ageing Better says the retirement age's rise from 66 to 67, which takes effect from April 6, will leave those approaching retirement age in severe financial difficulty.

The organisation is demanding immediate government intervention to assist individuals who must now wait an additional year before receiving what it describes as a modest yet vital source of income.

According to the charity, continuing to raise the pension age conflicts with ministers' reluctance to provide targeted assistance for overcoming established employment barriers that push many workers in their fifties and sixties out of jobs prematurely.

The charity points to evidence from the previous state pension age increase from the Department for Work and Pensions (DWP) as a stark warning of what lies ahead.

Elaine Smith, the head of Employment and Skills at the Centre for Ageing Better, said: "The last time the state pension increased to 66, poverty for 65-year-olds doubled. Those who were particularly hit hard included single people, renters, and those with lower education."

The forthcoming rise to 67 is expected to produce even more severe consequences, under the charity's forecasts, particularly among those with limited private pension savings.

Ms Smith noted that remaining in employment until state pension age is far from typical, with workforce participation dropping significantly after 60.

LATEST DEVELOPMENTS

State pension rises to £241.30 as DWP benefit increases take effect

DWP issues triple lock update as state pensioners face rising cost of living

State pension warning: HMRC issues letters to retirees with many 'unaware they owe tax'

Ms Smith suggested that individuals compelled to wait an extra 12 months for their pension could be permitted to claim Pension Credit ahead of schedule, or receive support through a specific Universal Credit component.

She emphasised that such interventions would represent minimal expenditure compared to the Treasury's anticipated savings exceeding £10billion from the pension age increase.

Furthermore, the Centre for Ageing Better is proposing that a fraction of these fiscal gains be redirected towards employment programmes for older workers.

The pension expert added: "Using just one per cent of this windfall could help support more than 35,000 people aged 50 and above away from the threat of long-term unemployment and into work."

The charity argues that the fundamental justification for repeatedly pushing back the pension age no longer holds true. Ms Smith pointed out that national life expectancy has fallen below pre-pandemic levels, while healthy life expectancy has reached its lowest point since UK records began 15 years ago.

These declining health trends directly affect people's capacity to continue working into their sixties. Multiple factors prevent older workers from remaining employed until pension age, including poor health, discrimination based on age, and responsibilities as carers.

Women, those on lower incomes, and disabled individuals face the greatest obstacles.

Ms Smith added: "To many on the cusp of state pension age, the increases feel more like a punishment than a logical policy,"