Pension credit level def needs to go up, but not pensions all round as you then get the situation claimed by most people that well off and actually wealthy pensioners don’t need it, which was said of the WFA.
But there has to be a balance between penalising people for having pensions and ensuring that people aren't suffering hardship. Too many people IMO expect that 'someone' will look after them with no real input from them, and it's just not realistic.
I was in a hospital setting the other day, and one of the staff was complaining to another patient that she wants to retire but can't just yet. I understand that POV totally. Then she said that she couldn't afford to go for a few years yet, as she wants to have some more good holidays (fair enough), but also that she and her husband would have to spend some serious money before retirement as 'you are not allowed' to have more then £23k when you're retired.
There was a definite suggestion that she thought there was no alternative but to go on benefits, or that she didn't see the point in not doing so. She said she had worked in the NHS for over 25 years, so I assume she was entitled to an occupational pension - she certainly would have one unless she'd chosen to opt out.
Why should it be the case that people who choose not to have an occupational pension should get PC benefits? They haven't paid in, but expect to be paid for by those who have. At least this woman has worked and paid tax for years - many people choose not to work, as opposed to being unable to. Why should those who have worked pay for them?
It's not just pensions, all sorts of things are affected. I was at the theatre earlier in the week, and there were cheap tickets available to 'the unwaged'. My friend claimed one, as she doesn't work, and hasn't done since her marriage over 30 years ago, which was her choice. Mr Dog and I paid, as we have pensions, despite the fact that we paid into them and pay tax on them. My friend will pay no tax on her pension when she gets it, as it will be her only source of income because she hasn't worked. Her husband has a good pension, and she has other money from inheritance, so they are not poor by any standards, but as she paid the voluntary fraction of NI (significantly less than the amount paid by workers) she will get the full new pension free of tax, which those who have worked and paid into an occupational pension do not. If people don't want to work it is their choice, I know, but that choice shouldn't put them at an advantage of those who do work.
Deciding that those with occupational pensions 'don't need' more money, but people who have chosen not to work should get more is unfair. That would bring everyone to the same income, give or take, and remove all incentive to provide for ourselves. As ever, it would be ok for the rich, and for those claiming the benefits, but be clawed back from the people who have worked and paid tax all their lives - the 'squeezed middle' if you like.
I don't know what would be both fair and not have a built-in disincentive, though. It's an inherent flaw with a welfare state that the options are either to penalise those with very little by tightening up on claims, or to allow 'chancers' to play the system. Who decides what others 'need' anyway? Of course those who would otherwise do without the basics need to be provided for, but equally, people on modest incomes should be able to save for a retirement doing whatever they like with their own money, and not see it clawed back because they 'don't need it' when those who haven't saved get benefits for not doing so. I don't know the answer though.