State pensioners face 'poverty' after losing DWP perk worth £3,900 each

State pensioners in poverty continue to rise as thousands miss out on £3,900 they are owed. 800,000 of those affected are missing out on a crucial benefit which could help top up income and provide a yearly boost worth £3,900.

The DWP latest figures lay bare the true impact of the Cost of Living crisis - with 13 per cent of pensioners said to be living in poverty. David Brooks, Head of Policy at leading independent financial services consultancy Broadstone, said: “Today’s data is well timed as the Work and Pensions Committee has begun its review of pensioner poverty, and the Government is expected to kick off a review of adequacy in pensions later this year.

“Understanding the causes of pensioner poverty will be key to ensuring the system is working as it should and supporting those in need. For example, increasing the take up of benefits that pensioners are entitled to, particularly those targeted at poorer retirees like Pension Credit, will be critical to lifting more people out of poverty in later-life.”

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Around 800,000 people are missing out on Pension Credit worth an average of £3,900 per year, according to the DWP. Sasjkia Otto, Fabian Society senior researcher, said: "Neither the state pension nor benefits guarantee protection from poverty, and many are falling through the cracks, especially those renting."

The report noted that pensioner poverty fell from 29 per cent in 1997/98 to 14 per cent in 2010/11 under the last Labour government, with Otto urging Labour to "finish what they started". “Social security reforms under the last Labour government helped halve pensioner poverty,” continued Otto.

"The 1942 Beveridge report established the principle that the state pension should be set in a way that protects people from poverty. The government should use the upcoming pensions review to consider the purpose of the state pension in the 21st century.”