New research from national charity Independent Age shows that full take-up of Pension Credit, pensioner Housing Benefit and Council Tax Reduction could lift 280,000 older people out of poverty across the UK and reduce pensioner poverty by 15%.

The report, ‘The only way is up: The impact of improved entitlement take-up on pensioner poverty and healthcare spending’, also shows that increasing take-up of these entitlements to 100% could help improve older people’s health, leading to a reduction in health and social care public spending by up to £790 million a year in England.

The number of older people in poverty in the UK is rising, with around 1.7 million in relative poverty in 2024/25, which is an increase of 200,000 compared to the year before. Another one million live close to the poverty line.

Despite this, the charity says that too many eligible older people are missing out on money set aside for them. Over one in three (38%) of those eligible for Pension Credit are not receiving it, and around 230,000 older households are missing out on Housing Benefit. Official take-up figures of Council Tax Reduction are not produced; however, the report analysis indicates that over a million pensioner households could be missing out.

The organisation is also calling for the Pensions Commission to agree on what an adequate income in later life looks like, and for the UK government to commit to ensuring everyone receives it. Concerningly, full take up would also provide an additional 770,000 older people with more vital income, but they would still remain in poverty, indicating that financial entitlements and the State Pension alone is not always adequate to live on.

Joanna Elson CBE, Chief Executive of Independent Age, said: “Our social security system was designed as a safety net for all of us but the evidence is clear, it is failing older people in poverty. Money that has been set aside is not reaching the older people who need it and at a time with increasing costs, the impact of this is devastating.

“Through our helpline, we hear often from older people who are having to skip meals or only wash once a week to make ends meet. This is unacceptable.

“Older people on a low income have been left to struggle for too long. That’s why we urgently need a strategy to ensure everyone receives the support they are entitled to and an agreement on what an adequate income looks like in later life for all of us as we age.

“With the upcoming changes in leadership, this is a golden opportunity for the UK Government to reverse the worsening picture of poverty in later life.”