UK pension age rise to 67 sparks benefit and employment concerns

The state pension age in the United Kingdom is being raised from 66 to 67, with the transition beginning in April 2026 and completing by April 2028. MPs and the Work and Pensions Committee warned that many people are unaware of the change and that health expectancy in some regions is below the new retirement age, raising doubts about the ability of older workers to stay in employment.

The Department for Work and Pensions (DWP) maintains the Attendance Allowance benefit, which can provide up to £5,959 a year to pensioners who need help with personal care because of a physical or mental condition. The rates were increased by 3.8% in April 2026.

A Centre for Social Justice report called for reform of the fit‑note system, arguing that most notes now advise “not fit for work” and that removing or adapting the system could keep more 50‑ to 64‑year‑olds in jobs. The same report highlighted a rise to 2 million benefit claimants in this age group.

A Bank of England survey found older workers are increasingly forced to apply for junior roles as the supply of good jobs shrinks, adding to competition with younger entrants and contributing to broader labour‑market strain.