UK DWP launches pension credit outreach and issues new holiday and savings rules for benefits

The Department for Work and Pensions (DWP) is contacting pensioners to increase uptake of Pension Credit, a means‑tested benefit that can top up earnings by up to £952 a month. Work and Pensions Secretary Pat McFadden said around 900,000 eligible pensioners are missing out and 120,000 letters have been sent to housing‑benefit recipients to encourage claims.

Guidance published on GOV.UK now requires Pension Credit claimants to notify the DWP if they travel outside England, Scotland or Wales, as failure to report can stop or reduce the payment and may lead to a court penalty. The DWP warns that over 700,000 people eligible for the credit are not claiming.

Separate DWP guidance on Universal Credit states that savings over £6,000 reduce the monthly award, with each £250 (or part thereof) above the threshold treated as income, and that holdings above £16,000 make claimants ineligible. Claimants must report any change in capital to avoid over‑payments.

In testimony to the Commons Work and Pensions Committee, Minister Pat McFadden indicated that the forthcoming Timms Review is likely to recommend cuts to Personal Independence Payment (PIP), which currently supports more than 4 million people. The DWP highlighted cost pressures as a key factor in the review.