More than 100,000 state pensioners will be asked to hand over their bank statements to the Department for Work and Pensions (DWP) as part of a wider benefit crackdown. The government hopes to cut £370 million from the benefits bill by April 2031 and is targeting claimants who receive the wrong amount of money.
Pension Credit review launched
A review of Pension Credit claims has been launched, and the DWP is set to ask pensioners to provide bank statements as part of cuts to the system. Officials will use the statements to check for red flags, including undeclared savings and assets, and whether claimants live abroad for more than four weeks at a time.
Pension Credit tops up your weekly income if you are over State Pension age and on a low income. The main part tops up your weekly income to £238.00 if you are single, or your joint weekly income to £363.25 if you have a partner.
Targeting means-tested benefits
The DWP has launched a review targeting Pension Credit claims to verify claimants are receiving the correct amount. It exclusively targets means-tested benefits and not the mandatory State Pension.
Officials are checking the Pension Credit eligibility of claimants, including how much money they have saved. If a claimant's savings exceed a certain limit, their benefit amount must be adjusted. They are also checking to see whether claimants spend more than four weeks at a time outside the UK, as this means they are not permitted to receive Pension Credit. The bank statements can reveal foreign transactions to give an indication to DWP officials.
Expected savings and overpayments
The Treasury is expected to recoup £15 million through reviews in the current year alone. An estimated 10,700 recipients are set to have their entitlements slashed.
Data shows that the average overpayment is around £1,400. Meanwhile, overpayments for Pension Credit climbed sharply from 28% in 2024/25 to 33% during 2025/26.
A DWP spokesperson said: "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 government wants all pensioners to get the support they are rightly entitled."
