Government relaunches the Pensions Commission

The Government relaunched the Pensions Commission in the week before 24 July 2025, to look into how future pension savings could be boosted to help future pensioners¹. The relaunch was reported by the Work and Pensions Committee, which said it welcomed the move but wanted those reliant now on the State Pension to be looked after too¹. Which? reported that the Commission has been relaunched to review the UK's pension system and recommend ways to improve retirement incomes, with an initial report due in 2027 and any changes likely to come in after the next election².

The Commission will consider widening access to workplace pensions and whether overall contributions should increase to 12% in future, though no changes are expected during this Parliament². Auto-enrolment, introduced in 2012, means most employees are automatically signed up to a workplace pension, with at least 8% of salary paid in: 5% from employees and 3% from employers². Those under 22 and people earning less than £10,000 a year are not automatically enrolled, though they can opt in². Which? reported that more than three million self-employed people are not saving into a pension, and that just one in four low earners or people from Pakistani or Bangladeshi backgrounds are putting money aside². It also reported that women approaching retirement typically have £5,000 a year less private pension income than men, and that many people retiring in 2050 could have £800 a year less private pension income than today's pensioners, according to government figures².

Separately, the Work and Pensions Committee published its Pensioner Poverty report on 24 July 2025, urging the Government to commit to a UK-wide, cross-government strategy for an ageing society¹. The report calls for a Pension Credit take-up strategy for England by the end of 2025¹. Despite being worth up to £4,000 a year, take-up of Pension Credit has hovered between 61% and 66% for a decade, with the latest figures showing an estimated 700,000 households eligible but not claiming¹. There were an additional 60,000 awards after Winter Fuel Payments were linked to Pension Credit last year¹. Under current rules, pensioners just above the income threshold of £227.10 per week for singles and £346.60 for couples miss out on passported benefits¹. The report also concluded that a taper to Pension Credit should be considered to "mitigate the cliff-edge effect"¹.

The Committee said the Government should decide on and ensure a minimum level of retirement income, with a guiding principle that the State Pension provides the amount needed for a "minimum, dignified, socially acceptable standard of living"¹. It noted that 2.1 million people receive less than the basic State Pension, and that the number of pensioners below the minimum needed for a socially acceptable standard of living almost doubled to 2.8 million in the 15 years to 2023¹. Almost one in six pensioners experienced relative poverty, rising to one in three for those in the private and social rented sector¹.

A separate review of State Pension age was announced in July 2025, the third such review, which will consider whether the rules around pensionable age are appropriate based on the latest life expectancy data and other evidence³. It will consider evidence from an independent report led by Dr Suzy Morrissey and a report from the Government Actuary's Department³. Which? reported that the next State Pension age review will take place earlier than planned, in 2027, following the last review in 2023, and that under current plans the age rises to 67 between 2026 and 2028 and to 68 between 2044 and 2046, with any changes announced at least 10 years in advance². It reported that the triple lock is forecast to cost £15.5bn a year by 2030, three times higher than first expected, and that analysis by the Institute for Fiscal Studies suggests the State Pension age may need to rise to 74 by the late 2060s to keep the triple lock affordable².

Why it matters for households

The Commission's remit covers how future pension savings are built up, so any changes to auto-enrolment thresholds or contribution rates would affect working-age people saving into workplace pensions, though no changes are expected during this Parliament². The State Pension age review concerns when people become eligible for the State Pension; the current timetable has the age rising to 67 between 2026 and 2028 and to 68 between 2044 and 2046². For pensioners already claiming, the Committee's proposals concern Pension Credit, worth up to £4,000 a year, which an estimated 700,000 eligible households do not claim¹. The mixed-age couple rule blocks Pension Credit to couples where the younger partner is below pension age¹. The Committee also flagged the position of women on the old State Pension who are financially disadvantaged¹. How pensions interact with Pension Credit and other benefits is set out in the site's guide.

What happens next

The Commission's initial report is due in 2027, with any changes likely to come in after the next election². The Committee calls for a Pension Credit take-up strategy for England by the end of 2025¹. The third State Pension age review was announced in July 2025, with a call for evidence on the independent report opened on 18 August 2025 and since closed³. The next State Pension age review is due in 2027².