In the financial year ending 2025, 16% of UK pensioners were in relative low income before housing costs and 14% after housing costs, according to the Department for Work and Pensions (DWP, Households Below Average Income, FYE 2025, subject to revision). Source: gov.uk, as at July 2026, subject to change.
This page pulls together the main pensioner poverty statistics published for the UK and shows where each one comes from. The headline measures below are for England, Wales, Scotland and Northern Ireland together, because the Households Below Average Income (HBAI) series reports at UK level. Every figure carries its source and reference period at the point of use, and figures are current as at July 2026 and subject to change. Where a number comes from a campaigning organisation rather than official statistics, it is flagged as a secondary source.
Key figures at a glance
Roughly one in seven pensioners were below the relative low income line after housing costs in the financial year ending 2025, and 1.5 million were in material deprivation, on DWP figures (HBAI, FYE 2025). The table sets out each headline statistic with its source and period.
| Statistic | Figure | Source & period |
|---|---|---|
| Pensioners in relative low income, before housing costs | 16% | DWP HBAI, FYE 2025 |
| Pensioners in relative low income, after housing costs | 14% | DWP HBAI, FYE 2025 |
| Pensioners in absolute low income, before housing costs | 16% | DWP HBAI, FYE 2025 |
| Pensioners in absolute low income, after housing costs | 14% | DWP HBAI, FYE 2025 |
| Pensioners in material deprivation | 12% (1.5 million) | DWP HBAI, FYE 2025 |
| Pension Credit average award | ~£4,300 a year (avg £82.71/week) | DWP news, published 30 Oct 2025 |
| Women pensioners in poverty (secondary source) | 1.1 million | Age UK (using DWP data), 11 Mar 2026 |
All percentages rounded as published. DWP notes none of the year-on-year changes to the four low income measures for pensioners were statistically significant (HBAI, FYE 2025). Figures as at July 2026, subject to change.
How many pensioners are in poverty?
The DWP measures pensioner poverty two ways. Relative low income counts pensioners below 60% of the median UK income in the same year, and absolute low income counts those below 60% of the 2010 to 2011 median held constant in real terms. In FYE 2025, both stood at 16% before housing costs and 14% after housing costs (DWP HBAI, FYE 2025).
| Measure (pensioners, FYE 2025) | Before housing costs | After housing costs |
|---|---|---|
| Relative low income | 16% | 14% |
| Absolute low income | 16% | 14% |
Source: DWP, Households Below Average Income, FYE 2025. As at July 2026, subject to revision.
The two bases matter because housing costs change the picture. Pensioners who own their home outright tend to look better off before housing costs are stripped out, while renters can look worse off afterwards. On the after housing costs basis, DWP reported that pensioner relative low income increased by almost 2 percentage points compared with FYE 2024, though it states that none of the changes to the four measures were statistically significant (HBAI, FYE 2025). Single-year movements can therefore reflect sampling variation as much as a real trend. Source: gov.uk, as at July 2026, subject to change.
Pensioner material deprivation
Alongside income measures, DWP reports pensioner material deprivation, which captures whether older people can afford or access items and help such as heating, home repairs and social contact. In FYE 2025 there were 1.5 million pensioners in material deprivation in the UK, which was 12% of all pensioners, an increase of 0.2 million on the previous year (DWP HBAI, FYE 2025, subject to revision). Source: gov.uk, as at July 2026, subject to change.
Material deprivation and low income overlap but are not the same. A pensioner can be above the income line yet still go without essentials, often because of health costs, an unsuitable home, or a lack of practical support. The measure has been part of the HBAI series since 2009 to 2010, so it gives a longer view of hardship that a pure income cut-off can miss.
Unclaimed support: Pension Credit
Some pensioner poverty sits alongside unclaimed help. Pension Credit tops up the income of many older people on low incomes and is worth on average around £4,300 a year, an average of £82.71 a week (DWP news, published 30 October 2025, subject to change). DWP has reported that the number of eligible households not claiming rose from a previous estimate of 760,000. Source: gov.uk, as at July 2026, subject to change.
Take-up also varies by region and by circumstance. As a clearly attributed secondary source, Age UK estimated that 1.1 million women pensioners were living in poverty and that 470,000 eligible single women were missing out on Pension Credit, using DWP data (Age UK, 11 March 2026). Source: ageuk.org.uk (secondary source, using DWP data), as at July 2026, subject to change. Because Pension Credit can also open the door to other help, unclaimed entitlement is one reason official poverty counts and lived hardship can diverge. Detail on how these estimates are produced sits in the DWP take-up series (gov.uk, income-related benefits take-up).
What the numbers mean
Read together, the figures suggest pensioner poverty in the UK has been broadly flat rather than falling, with hardship measures such as material deprivation edging up. In our reading, the after housing costs measure is often the more telling one for older renters, while the before housing costs measure can flatter outright homeowners. Both are useful, and neither on its own tells the whole story.
A few points of interpretation, offered as general analysis rather than advice:
- Single years are noisy. DWP flags that recent pensioner changes were not statistically significant (HBAI, FYE 2025), so trends can be clearer over several years than between two.
- Averages hide spread. Group averages in the Pensioners' Incomes series (DWP, FYE 1995 to 2025, published 26 March 2026) can sit well above the experience of pensioners who rely mostly on the State Pension.
- Take-up is part of the picture. Unclaimed Pension Credit means some measured hardship is, in principle, addressable through existing entitlements (DWP news, 30 October 2025).
These are patterns in the data, not predictions. Individual circumstances vary widely, and anyone weighing up their own position can find it worth discussing with a qualified professional.
Where later-life planning fits
Poverty statistics describe the population, not any one household, and later-life financial planning covers a broad range of circumstances at both ends of the scale. Many people who are comfortable on paper still face large future costs, from home adaptations to residential care, and these can reshape what an estate looks like over time. General guidance on structuring affairs sits in our estate planning guide.
Two related pressures are worth understanding in the round. First, the cost of later-life care: local authorities apply a means test, and rules on deprivation of assets mean that deliberately giving away money or property to reduce a care contribution can be challenged, so planning here is about care fees planning and mitigating the impact of care costs, not avoiding them. We cover this in our guide to Care Home Fees. Second, the demographic backdrop, since a larger and longer-living older population changes the demands on both families and the State, as set out in our overview of the UK ageing population. Any structure that touches means-tested support or tax is best considered with a suitably qualified professional who can look at the full position.
Sources and methodology
Every headline figure on this page comes from a named official source and was checked against the live publication. The HBAI series is the UK's main source for relative and absolute low income and material deprivation; Pension Credit figures come from DWP; and Age UK is used only as a clearly attributed secondary source. Figures are as at July 2026 and subject to revision.
- DWP, Households Below Average Income (HBAI): an analysis of the UK income distribution, FYE 1995 to FYE 2025 (relative and absolute low income, material deprivation). gov.uk
- DWP, Pensioners' Incomes series, FYE 1995 to 2025, published 26 March 2026 (pensioner incomes and their sources). gov.uk
- DWP, Pension Credit take-up news release, published 30 October 2025 (average award and non-claimants). gov.uk
- DWP, Income-related benefits: estimates of take-up (methodology and detailed take-up estimates). gov.uk
- Age UK press release, 11 March 2026 (secondary source, using DWP data). ageuk.org.uk
Frequently asked questions
How many pensioners are in poverty in the UK?
On the standard official measure, 14% of UK pensioners were in relative low income after housing costs, and 16% before housing costs, in the financial year ending 2025 (DWP HBAI, FYE 2025, subject to revision). These are UK-wide figures and cover pensioners across England, Wales, Scotland and Northern Ireland. Source: gov.uk, as at July 2026, subject to change.
What is the difference between relative and absolute low income?
Relative low income counts pensioners below 60% of the median UK income in the same year, so the line moves with typical incomes. Absolute low income compares against 60% of the 2010 to 2011 median held constant in real terms. In FYE 2025 both measures were 16% before housing costs and 14% after housing costs for pensioners (DWP HBAI, FYE 2025). Source: gov.uk, as at July 2026, subject to change.
Is pensioner poverty rising?
The recent picture is broadly flat rather than clearly rising. DWP reported that pensioner relative low income after housing costs rose by almost 2 percentage points in FYE 2025, but that none of the changes to the four low income measures were statistically significant (DWP HBAI, FYE 2025). Trends generally read more reliably over several years than between two. Source: gov.uk, as at July 2026, subject to change.
How many pensioners face material deprivation?
In the financial year ending 2025 there were 1.5 million pensioners in material deprivation in the UK, which was 12% of all pensioners, up by 0.2 million on the year before (DWP HBAI, FYE 2025, subject to revision). This measure looks at going without essentials, which can differ from being below an income line. Source: gov.uk, as at July 2026, subject to change.
How much Pension Credit goes unclaimed?
Pension Credit is worth on average around £4,300 a year, an average of £82.71 a week, and DWP has reported that the number of eligible households not claiming rose from a previous estimate of 760,000 (DWP news, published 30 October 2025, subject to change). Detailed take-up estimates sit in the DWP take-up series. Source: gov.uk, as at July 2026, subject to change.
Do these statistics apply to Scotland and Northern Ireland?
Yes. The Households Below Average Income series reports pensioner low income and material deprivation at UK level, covering England, Wales, Scotland and Northern Ireland (DWP HBAI, FYE 2025). Some support schemes and later-life legal rules differ by nation, so local detail can be worth checking separately.