A fair deal for later life: why Britain’s pensioners deserve better

FOR IMMEDIATE RELEASE   A fair deal for later life: why Britain’s pensioners deserve better 

When Later Life Ambitions (LLA) launched its Pensioners’ Manifesto back in November 2023, the world was rather different.

Since then, the cost of living has soared, social care services have come under growing strain, and uncertainty about the economy and future government policy has only deepened.

That’s why LLA’s new Budget for Later Life isn’t just a refresh of old ideas. It’s a reality check for 2025 and beyond. It updates the original manifesto to reflect things as they are now, setting clear priorities ahead of the next general election. At its heart is a simple but powerful message: older people deserve security, dignity, and fairness.

The Budget for Later Life calls on decisionmakers to:

1.     Protect the State Pension

2.     Reduce pensioners’ tax burden

3.     Introduce a minimum income guarantee

4.     Tackle the gender pension gap

5.     Back older people in the workplace

6.     Widen access to public transport

7.     Make housing safe, secure, accessible and adaptable

8.     Support health and social care

Protecting the State Pension triple Lock

The State Pension triple lock has been one of the pillars of the British welfare state since its introduction in 2011. More than just a technical formula, it represents a promise to protect pensioners’ living standards – a promise that has helped lift millions out of poverty and rebuild confidence in the system after decades of decline.

Before the triple lock was brought in, the value of the State Pension had fallen to just 16% of average earnings, down from 26% in 1980. By 2022, thanks to the policy, that figure had risen to almost 25%, helping to restore fairness and stability.

Despite this, there is now growing speculation that the policy could be watered down or scrapped in the name of fiscal restraint. Pensions Minister Torsten Bell is just one of many who has made no secret of their doubts about it.

LLA’s position is equally clear: the triple lock must be protected beyond 2029. Pensioners should not pay the price for short-term political decisions or government belt-tightening.

Rethinking the State Pension age debate

The Budget also turns its attention to another pressing issue: the age at which people can afford to retire. LLA argues that any future increases in the State Pension age must consider healthy life expectancy, not just how long people are living overall. For those in manual or lower-paid jobs, the gap between life expectancy and healthy life expectancy can mean years of ill health before retirement or none at all.

A fair pension system must reflect these inequalities rather than ignoring them. People who have worked hard all their lives should not be expected to continue into their late 60s simply because averages make it look possible on paper. Put simply, 68 is too late for the State Pension.

Guaranteeing a minimum income

Financial security in later life should never depend on luck. That’s why LLA is proposing a Minimum Income Guarantee for older people: a commitment that everyone should be able to afford the essentials of life: a safe home, good food, heating, transport, and basic personal care.

According to the Pensions and Lifetime Savings Association’s Retirement Living Standards, a single pensioner needs around £17,155 a year to enjoy a modest but decent standard of living. For millions, that figure is out of reach. The new guarantee would ensure that pensions and benefits rise in line with real living costs, reviewed every year to keep pace with prices rather than lagging behind them.

Encouraging saving and planning

The Budget also argues for maintaining tax relief on pension contributions, ensuring that people are rewarded, not penalised, for saving during their working lives. But saving isn’t enough if people don’t know what they’re saving for.

That’s why LLA is calling for a national campaign to help people plan properly for retirement. Right now, three-quarters of adults have done little or no planning at all, and more than 80% don’t know how much income they’ll need. It’s a worrying picture: one that demands better awareness and support.

Closing the gender pension gap

Another longstanding injustice is the gender pension gap. On average, women retire with 35% less pension wealth than men. That gap is the result of decades of lower pay, part-time work, and unpaid caring responsibilities that have left many women disadvantaged in retirement.

LLA’s proposals aim to change that by expanding National Insurance credits for carers, creating a Pension Credit supplement for low-income women, and introducing mandatory gender pension gap reporting, in the same way companies already report on gender pay gaps.

The goal is simple: fairness for the millions of women who have contributed so much, often unseen, throughout their lives.

Tackling “stealth taxes”

For many pensioners, taxation has become another hidden threat to financial stability. The government’s decision to freeze income tax thresholds until 2028 has effectively created a “stealth tax.” Because pensions have risen with inflation, more than a million older people have been dragged into paying tax for the first time.

The Budget calls for tax thresholds to rise in line with inflation and for the 25% tax-free pension lump sum to remain protected. Pensioners should not be taxed into hardship simply for keeping up with the cost of living.

Life beyond money

While financial security is essential, the Budget also recognises that quality of life depends on much more than income. Affordable, accessible transport is vital for independence and connection, yet concessionary travel schemes vary wildly between regions. LLA is calling for these schemes to be protected, standardised, and properly funded across the country, alongside greater investment in rural transport networks.

Housing is another cornerstone of wellbeing. Nearly two million older households live in homes that fail to meet the Government’s Decent Homes Standard. The Budget urges that all new homes be built to accessible and adaptable standards and calls for a National Home Adaptation Programme to retrofit existing properties with practical improvements such as ramps, insulation, and walk-in showers.

Fixing social care for good

Perhaps the most urgent issue of all is social care. Nearly half a million people in England are waiting for assessments or services. This is an unacceptable backlog that leaves families under immense strain.

The Budget proposes the creation of a National Social Care Framework, setting clear minimum standards, ensuring sustainable long-term funding (potentially through a dedicated levy), and delivering better integration with the NHS so that older people receive joined-up, compassionate care wherever they live.

A call to action

The Budget for Later Life is more than a list of policy recommendations. It’s a statement of principles and a call to action. It challenges policymakers to look beyond short-term fiscal targets and to recognise the human cost of inaction.

Britain’s older people have spent decades contributing through work, taxes, and unpaid care. They’ve helped build and sustain the country we all depend on. Now, they deserve a fair deal that guarantees dignity, independence, and security in later life.

A fair deal for later life isn’t just good policy. It’s a moral imperative and a test of the kind of society Britain wants to be.

PRESS RELEASE

ENDS 

NOTES TO EDITOR 

• Later Life Ambitions (LLA) brings together the collective voices of over 250,000 pensioners nationwide from the Civil Service Pensioners’ Alliance National Federation of Occupational Pensioners (CSPA), the National Association of Retired Police Officers (NARPO) and the National Federation of Occupation Pensioners (NFOP).   

• LLA seeks to change the terms of the debate around ageing to focus on the ambitions of pensioners rather than the perceived “costs” to the rest of society.  

• In November 2023, LLA launched a Pensioners’ Manifesto. The manifesto outlines policy that LLA believes that improve the lives of the UK’s 11 million older people – as well as the lives of the older people of tomorrow. LLA does not endorse candidates or parties and seeks balanced engagement with all mainstream parties. 

For further information or comment, please contact Matthew Boyd at m.boyd@connectpa.co.uk or on 07721 687 102.  

To find out more about the LLA manifesto, please visit: www.laterlifeambitions.co.uk/manifesto.