The Department for Work and Pensions (DWP) has begun a significant review of Pension Credit claims, requesting bank statements and other financial information from some recipients. This initiative forms part of a broader drive aimed at addressing overpayments and reducing the welfare bill by £370 million.
The campaign, initially announced by former Chancellor Rachel Reeves during last year’s Budget, involves contacting“selected customers” to verify the accuracy of their claims. While the number of Pension Credit claimants subject to review is expected to be substantial, around 95,000 to 100,000 individuals may face reductions in their payments as a result.
The DWP emphasises that being selected for a review does not imply any wrongdoing. However, claimants may be asked to provide additional documentation, including bank statements, to support their case during this process.
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The government anticipates recovering approximately £15 million this year through this effort. Currently, around 910,000 pensioner households are missing out on Pension Credit, despite many having contributed to the system for years. The benefit is intended to top up incomes to a minimum level; individuals with total weekly income below £238 (or £363 for a couple both over state pension age) are generally eligible.
Those with incomes slightly above these thresholds may also qualify depending on their circumstances, especially if they receive disability benefits or have caring responsibilities.
Data indicates that the proportion of overpaid Pension Credit claims rose to 33% in the 2025/26 tax year, an increase from 28% the previous year. The average amount reclaimed per case is estimated to be around £1,400.
A DWP spokesperson stated, “We know that a claimant’s circumstances can change throughout their claim, which can lead to their claim being incorrect. By reviewing claims, we can ensure claimants are receiving the correct entitlement.”
The spokesperson added that the government is committed to supporting pensioners, mentioning that the largest ever Pension Credit take-up campaign recently resulted in an additional 33,500 awards in 2025, each worth on average £87 a week compared with the previous year.