Older people are surviving, not living. The autumn budget cannot ignore pensioner poverty

Across the UK, far too many older people on low incomes are simply surviving, not living. At Independent Age, we hear from people in later life every day who are making impossible, heartbreaking choices just to get by. Older people tell us they are skipping washes to save on water, going to bed in hats and coats to stay warm, and surviving on a single small meal. These aren’t rare stories, they are the reality for far too many people in later life

We need to stop calling this the cost of living “crisis”. A crisis implies something temporary. Instead, what we now see is a long-term, high household costs have become a permanent feature of life. They are decimating the budgets of older people in financial hardship, leaving many perched on a cliff edge with nothing to fall back on.

Our new research paints a stark picture: too many older people have little or no savings and are just one unexpected cost away from disaster. For some, even a £50 bill is enough to push them into debt or force them to go without something essential. When someone’s entire income is consumed by basics like rent, food, and energy, there is nothing left when a boiler breaks, a fridge fails, or a car repair becomes unavoidable.

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And these emergencies are anything but cheap. Car repairs average £617 a year. A replacement boiler can cost between £600 and £2,500. Appliances like fridges or cookers add hundreds more. We have spoken to older people who are living without household items most of us would consider essential. No oven, no working boiler, no proper mattress. It is unacceptable that in 2025, older people are being forced to live in such precarious and unsafe conditions.

Both central and local government have the power to change this. The soon-to-launch crisis and resilience fund, expected in April 2026, is an important opportunity, but only if it is properly funded across the country, well publicised and designed to cover a wide variety of unexpected costs.

But emergency costs are only part of the picture. Our research also shows that pressure from essential bills like energy, water, broadband and council tax is getting worse. More older people on low incomes are worried about affording these bills today than just two years ago. After more than a year of rising prices, budgets have been stretched to breaking point.

This is why the upcoming budget matters so much. The UK government must act to bring down household costs for people on low incomes. Energy bills remain a major source of fear and stress for older people. In the short term, the warm home discount should increase from £150 to £400 so it reflects the real cost of heating a home. In the long term, we need a permanent, targeted energy social tariff that ensures people on low incomes are protected from future price spikes.

Last winter was brutal. Many older people lost the winter fuel payment and were forced to choose between food and warmth. Although the payment has been reinstated for those on low incomes, bills remain painfully high. No older person in the UK should be sitting in a cold home because they cannot afford to switch the heating on.

Water bills are also becoming a growing burden. A national water social tariff for England and Wales would bring fairness and consistency, ending the postcode lottery that currently decides whether someone gets support.

Finally, we must fix the systems that are supposed to help. Too many older people are missing out on support they are entitled to because the UK’s overly complex social security system is difficult to navigate. A focused national strategy to increase take up and a simpler system overall would lift many people out of hardship.

Right now, around two million older people in the UK are living in poverty. Poverty in later life is not only financially devastating; it is isolating, exhausting and deeply dehumanising. The upcoming Budget is a crucial opportunity to  tackle this challenge and confront later life poverty head-on and to commit to a future where everyone can age with dignity.

The cost of living must be addressed. Because the cost of inaction is far higher.

Joanna Elson is chief executive of Independent Age.

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