Pensioners are skipping showers and cutting back on food as millions face poverty

At the start of 2026, Keir Starmer and his government rightly identified the cost of living as an urgent issue. After years of rising prices and high bills, millions of people are struggling. Older people on low incomes have been hit particularly hard, with nearly two million now living in poverty. Their budgets have been pushed beyond breaking point, and 2026 must be the year the government takes decisive action.

Energy and water bills have risen relentlessly. Older people tell us they are skipping showers, sitting in public buildings to keep warm, and cutting back on food because there is nothing left. This cannot continue.

The government must take meaningful steps to reduce utility costs. National social tariffs for energy and water would lower bills for people on low incomes and protect them from future price spikes. The warm home discount must also be strengthened. While we welcome the proposed extension of the scheme, at £150, it no longer reflects the reality of energy costs and should be increased to £400. A fair society does not allow vulnerable people to go without essentials such as heat and water.

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High living costs are not the only challenge facing older people in financial hardship. Too many are trying to survive on an inadequate income. Last year the government took the positive step of announcing a new Pensions Commission. The previous commission introduced effective policies on auto enrolment that ensured people were able to save more for retirement. If this commission is to be effective, its recommendations must benefit current and future pensioners.

There are ways the government can boost the income of older people in financial hardship. An all entitlement take up strategy could tear down many of the barriers preventing people from accessing financial support they are entitled to. Independent Age’s research revealed that an overly complex system is preventing people from applying for entitlements such as pension credit and attendance allowance. It’s not right that only 62% of eligible older people are receiving pension credit, meaning £2.5billion worth of support is not reaching those that need it the most. This needs to change in 2026.

This year we hope to see conditions for older private renters improve. This is a growing group and renting in later life increases the likelihood of living in poverty. Last year we welcomed the passing of the Renters’ Rights Bill. This year we want to see it effectively implemented so older renters can live in safe, secure homes with less fear of eviction. However, the bill does not address the on-going freeze on local housing allowance which means it is failing to cover the cost of renting for a growing number of older people. In 2026 it must be uprated, or older renters will continue to struggle to keep a roof over their heads.

The government will use this year to review the state pension age and may consider accelerating its rise to 68. We would strongly oppose this since previous increases have coincided with higher levels of poverty among those approaching retirement, especially for those who are in poor health or insecure work.

Measures must also be taken to lessen the impact of the state pension age increase to 67 due to take place between April 2026 and April 2028. For example, the government should reverse the unfair mixed age couples rule. This prevents many older people on low incomes from accessing pensioner entitlements such as pension credit because their partner is below the state pension age. 

It’s not right that two people of the same age can be treated completely differently just because one has a younger partner. The government has a clear opportunity to make 2026 a milestone year in the fight against pensioner poverty and improve the lives of millions in later life. What is needed now is the political will to act.

Joanna Elson CBE is chief executive of Independent Age.

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