The Department for Work and Pensions (DWP) is preparing to inform pensioners that they will need to provide bank statements. This is part of a review into Pension Credit claims, first reported by I News.
The DWP is contacting thousands of Pension Credit recipients with the goal of cutting £370m from the benefits bill by April 2031. The policy was initially announced by former chancellor Rachel Reeves during last year's Autumn Budget.
Pension Credit provides additional government money to those over state pension age with low incomes, helping with living and housing costs. For single individuals, it can top up weekly income to £238, while couples can receive £363.25.
The government expects to recover £15m from these reviews, which could lead to approximately 10,700 claimants having their entitlement reduced. The average overpayment is estimated at £1,400 per case.
DWP statistics from May indicate that the proportion of overpaid Pension Credit claims rose to 33% in the 2025/26 tax year, up from 28% the previous year. Incorrect payments were attributed to claimants not fully declaring financial assets or exceeding permitted time overseas.
Despite these reviews, Pension Credit remains widely unclaimed. Figures from Policy in Practice suggest around 761,000 pensioners did not claim the benefit in the last tax year, amounting to £1.6m. The government launched a campaign in October last year to encourage take-up, resulting in 33,500 new claimants.