UK Department for Work and Pensions launches Pension Credit review

The Department for Work and Pensions (DWP) has launched a review of Pension Credit claims as part of an initiative to reduce the benefits bill by £370 million by April 2031. The department has begun contacting selected customers to verify their continued eligibility for the means-tested top-up, which supports low-income individuals over the State Pension age.

As part of this scrutiny, some pensioners may be required to provide evidence such as recent bank statements, details of savings, investments, property, and information regarding time spent outside the UK. Estimates suggest between 95,000 and 100,000 individuals could potentially lose some or all of their payments following these reviews.

The crackdown follows data showing that Pension Credit had the highest proportion of overpaid claims among all benefits, with overpayments totaling £620 million. The primary causes identified for these errors include claimants under-declaring assets and savings, as well as staying abroad longer than permitted by regulations.