State pensioners dependent solely on Department for Work and Pensions (DWP) payments are facing growing financial challenges as the cost of living continues to soar, partly due to global events like the Iran War. According to research by Royal London, 12 per cent of adults over state pension age rely exclusively on the state pension for their income.
Sarah Pennells, a consumer finance expert at Royal London, highlights the struggles: “For many pensioners, living on the state pension alone is becoming increasingly difficult.” She points out that hundreds of thousands receiving the new state pension don’t get the full amount. For those who do, the weekly payment of £241.30 translates to less than £35 a day—barely enough to cover food, heating, energy, and council tax.
Additionally, twice as many pensioners remain on the older basic state pension system. While some benefit from a state second pension on top of this, many receive only £184.90 per week. Despite nominal increases in the state pension, essential costs such as food, energy, housing, and council tax have risen sharply, outpacing pension growth and making basic living expenses harder to manage.
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Rebecca Lamb, external relations manager at Money Wellness, urges pensioners to explore available support, including Pension Credit. She notes that around 910,000 eligible households do not claim this benefit, missing out on an average of £2,600 annually, plus additional support for housing and council tax.
“For thousands of pensioners, this extra income could provide crucial relief,” Lamb explains. “With rising living costs and increasing fuel poverty among older people, it’s vital that pensioners and their families understand their entitlements and seek support—every pound counts when living on a fixed income.”