INCREASING universal credit (UC) for 66-year-olds will not fix Britain’s “inadequate” pensions system, which causes people to suffer “up until and beyond retirement,” campaigners warned.

A report from the work and pensions committee published today urged the government to look into increasing the level of the benefit in the year before state pension age.

Calling it a “short-term” approach to deal with the rise of the state pension age from 66 to 67 already affecting new pensioners, MPs said using UC would “enable support to be provided quickly.”

“For 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,” the committee’s report read.

It warned of a growing number of 66-year-olds who would have to rely on the standard rate of UC of around £425 a month for longer due to the change in retirement age.

The committee said it supported “increasing the level of universal UC for all recipients in the year before state pension age because it has a greater impact in reducing poverty and hardship.”

“We recommend it as a short-term approach, to mitigate the impact of the increase to 67, which has already started,” and that this support could be deployed quickly.

They added: “Those out of the labour market at this point in their lives are very unlikely to return to it.”

The National Pensioners’ Convention said that while increasing UC was an “interesting” idea, it cannot serve as a long-term solution to “state pension inadequacy.”

“In a climate of cost of living rises, older people struggle and will continue to struggle financially through to, and beyond retirement,” general secretary Jan Shortt told the Morning Star.

“Universal credit is helpful, but is not the solution to longer-term state pension inadequacy.

“The basic state pension is too low and there must be a focused conversation on what is a decent level of retirement income for everyone and how that is funded.”

She added: “Research has already shown that increasing the state retirement age has impacted 65-plus-year-olds, financially as well as health wise.

“Too old or sick to be given work, too young to claim their pension.

“Ageism in employment is a feature of workplaces in the UK. There are only a handful of employers who value the knowledge, experience and work ethic of an older age person.”

Centre for Ageing Better deputy director for work Dr Andrea Barry agreed that this plan could only be a short-term fix.

“In the longer term, and well before any future state pension rises, we need the government to take a joined-up approach across pensions, work, benefits, and health, to ensure that the mid-60s is not a period of heightened financial precarity for growing numbers of older people,” Ms Barry said.

She also urged for any ongoing reforms to employment and skills support be “designed with the needs of older people in mind.”

Older workers should also receive “enhanced careers guidance and financial planning advice” and “stronger support for those living with health conditions.”

Age UK director Caroline Abrahams welcomed the committee’s conclusions: “Allowing people who are realistically never going to work again to struggle to make ends meet until they hit state pension age is a senseless waste and an issue we’ve been highlighting for many years.”

“So it’s fantastic that the committee is strongly advising the government to address it and to do so quickly.”

TUC general secretary Paul Nowak told the Star: “Raising the state pension age from 65 to 66 has already caused a big increase in pre-retirement poverty.

“Additional support through universal credit for those aged 66 would be a welcome step, but it wont be enough.

“There should be early access to the state pension and pension credit for those unable to work due to ill health, caring responsibilities and other barriers to employment. 

“The government should also now be clear that it is ruling out any further state pension age rises.”

The Department for Work and Pensions said it welcomed the committee’s inquiry and “will consider” its recommendations.

A spokesperson said: “As of February 2026, just 0.02 per cent of the universal credit caseload was aged 65 or 66,” adding that “a range of options for extra support” were available for those who have yet to reach pension age.