Pension lower age change call key update as DWP set to respond | Personal Finance | Finance
People should be allowed to get to pension age earlier, a petition has said (Image: Getty)
A push to get a major change to the age people receive their pensions in the UK has hit a key threshold, meaning the Department for Work and Pensions must respond. A petition on the Parliament website has hit more than 10,000 signatures, which means officials must make an official reply.
The issue is controversial with the government currently engaged in raising the pension age – something which has drawn much criticism for potentially throwning many people into poverty. The petition suggests it would be a good way of freeing up jobs for younger people.
It says: โLower the State Pension age for workers so young adults that donโt currently work have more chance of getting a job.
โThe longer people are having to work the fewer jobs there are out there for young adults. If the Government lowered the State Pension age we believe it could encourage retirement so that employers might take on a young adult to fill the space โ that would help young people get jobs and also help the older generation that have done their bit for society and get to enjoy the last few years of their life.โ
The latest Office for National Statistics (ONS) and House of Commons Library data show that 751,000 young people aged 16 to 24 were unemployed in the UK between May and July 2026, representing a youth unemployment rate of 16.4%.
Earlier this year analysing survey data, including from the Office for National Statistics, the Institute for Public Policy Research (IPPR) said 16- to 21-year-olds were less confident about being successful than a decade ago.
Policymakers have become increasingly concerned about the challenges facing young people, with the number of people aged 16 to 24 who are not in education, employment or training (Neets) recently exceeding 1 million for the first time in a decade.
However the government is engaged currently in raising the pension age to 68. The Government should look at increasing universal credit for 66-year-olds to prevent financial hardship stemming from the โlottery of lifeโ as the state pension age rises to 67, according to a committee of MPs.
The Work and Pensions Committee said in July it is backing calls for the Government to increase universal credit for 66-year-olds. It said ministers should consult on the change with a view to putting it in place by the end of 2026 as a temporary measure, allowing time to develop longer-term support.
There is evidence the longer wait for their state pension will โharmโ 66-year-olds who are unable to keep working until 67, the committee said. The state pension age has started a phased rise, gradually increasing in steps from 66 to 67, affecting new pensioners.
The report said: โFor many, this will be a year of hardship, on inadequate working age benefits, potentially depleting savings they were relying on to support them in retirement.โ
To view the petition click here.
The committee said a growing number of 66-year-olds may have to rely on the standard rate of universal credit of around ยฃ425 a month for longer, despite worsening health.
Its report added: โOn balance we support increasing the level of universal credit (UC) for all recipients in the year before state pension age because it has a greater impact in reducing poverty and hardship.
โWe recommend it as a short-term approach, to mitigate the impact of the increase to 67, which has already started.
โWe propose using UC on the basis that it should enable support to be provided quickly. We recognise that the impact on work incentives is a consideration. However, the proposal is for a modest increase in support in the year before state pension age.
โThose out of the labour market at this point in their lives are very unlikely to return to it.โ People on low incomes can apply for pension credit โ but this support is only available once people have reached state pension age.
The committee said this leaves many pre-pensioners, particularly those with health issues, caring responsibilities or long histories in labour-intensive jobs, relying on the savings they may have set aside for retirement.
There is also a geographical consideration, with ill-health and disability concentrated in the most deprived areas, where there are fewer economic opportunities, the committee said.
The report said: โThe impacts of the rise to 67 will be very uneven. For many unable to keep working, particularly on low incomes and in the most deprived areas, it will mean hardship as they wait longer for a state pension.
โTheir shorter life expectancy means that they can then expect to receive it for a shorter time than those in the least deprived areas.
โWe know that the last increase โ from 65 to 66 โ resulted in absolute poverty rates among 65-year-olds more than doubling.โ
The report also said: โWe were concerned to hear that, while later working is generally good for health when it is voluntary, this is not the case when it is due to financial necessity, particularly for people having to continue to in physically demanding jobs.โ
It added: โBased on the evidence we have received, there is a clear justification for providing additional social security support for those unable to keep working in the years approaching state pension age.
โWhile pension age rises have been justified on grounds of fairness between generations โ each generation should expect to spend a similar proportion of adult life contributing to and receiving the state pension โ fairness within generations is also important.โ
Committee chairwoman Debbie Abrahams said: โWe canโt just allow people who are already struggling as they approach pension age to be forced to choose between continuing work in poor health or prolonging their poverty as they wait for their state pension to kick in.
โThis is not the later life that anyone wants or to see their loved ones endure after providing for decades.
โWe should recognise that pre-pensioners have greater needs and greater barriers into employment due to ill-health, age discrimination, lack of opportunity to upskill.
โMore than half of people are not in paid work in their mid-60s, and theyโre not likely to get it if theyโve been effectively written off.
โAdditional social security payments are essential in reducing the compounding effects of the lottery of life and the state pension age increase.โ