DWP Reviews Pension Credit Claims to Cut £370 Million

The Department for Work and Pensions has launched a review of Pension Credit claims as part of a broader effort to reduce the national benefits bill by £370 million by April 2031. The agency is contacting selected pensioners to verify eligibility, requiring the submission of bank statements and documentation regarding income, savings, and time spent abroad.

This crackdown follows data from May showing that Pension Credit had the highest proportion of overpaid claims of any benefit, with overpayments totaling £620 million. The DWP expects this current round of reviews to recover approximately £15 million, which could result in reduced entitlements for 10,700 claimants.

The review program was first announced by Rachel Reeves in last year's Budget and is scheduled to run from 2026 to 2029. The DWP stated the process ensures claimants receive the correct entitlement, noting that awards may be increased or decreased based on updated circumstances.