UK committee urges higher Universal Credit for 66‑year‑olds as pension age rises to 67

The Work and Pensions Committee, backed by a cross‑party group of MPs, has called on the British government to raise Universal Credit for people aged 66. The recommendation targets a temporary increase that could be consulted on now and implemented by late 2026, covering the year before the state pension age rises from 66 to 67 – a change phased in between April 2026 and March 2028.

Committee chair Debbie Abrahams said the rise to 67 will cause “hardship” for many pre‑pensioners, especially those in poor health, with caring duties or in physically demanding jobs, who may have to rely on the standard UC rate of around £425 a month for longer. The committee notes that the previous increase from 65 to 66 more than doubled poverty among 65‑year‑olds. It estimates the proposed uplift would cost about £600 million, offset by the £10.5 billion savings from the pension‑age raise, and argues the measure would reduce poverty without significantly affecting work incentives.