Up to 100,000 Pension Credit recipients could reportedly be asked to provide bank statements as part of Department for Work and Pensions (DWP) checks that may see average £87-a-week payments reduced or stopped.
Pension Credit provides extra financial help to people over State Pension age on a low income, with around 1.4 million households receiving the benefit. The amount someone is entitled to can change over time if their financial circumstances differ from when they first claimed, and the DWP is now reviewing claims to ensure people are still receiving the correct amount.
Some pensioners could find they are entitled to more money, while others whose circumstances have changed could see their payments reduced. As part of the checks, up to 100,000 Pension Credit recipients could be asked to provide bank statements showing their current savings and income, The i Paper reports.
Review process and savings rules
Anyone selected for a review should respond to requests for information, as former pensions minister Sir Steve Webb has warned that people who decline to provide bank statements could have their payments stopped. Pension Credit currently tops up weekly income to £238 for a single pensioner and £363.25 for couples, although some people can receive more depending on their circumstances. The average award is around £87 a week.
Savings can make a difference to how much someone receives. The first £10,000 of savings and investments is ignored, but for every £500, or part of £500, above that amount, the DWP treats someone as having an additional £1 of weekly income. This means a pensioner with £11,000 in savings would have £2 a week counted as income when their Pension Credit is calculated.
Impact on entitlements
Someone whose savings have increased since they originally claimed, perhaps because they received an inheritance or took a pension lump sum, could therefore find their entitlement is lower. But the reviews could also result in some people getting more. Pensioners who have spent some of their savings since making their claim may now be entitled to a higher payment.
Sir Steve said: “In principle, people in receipt of benefits are required to notify DWP if their circumstances change, and this can include increases or decreases in their savings.”
“In practise, relatively few people probably realise they need to do this, so the information held by DWP can become out of date.”
“Whilst it’s only right and proper that [the] benefit is not paid to people who are well able to support themselves, a large-scale exercise like this risks being seen by the public as snooping and is likely to create resentment.”
Expected recoveries and response
The DWP expects to recover £15million through the reviews this year, with around 10,700 claimants estimated to have their entitlement reduced based on an average overpayment of £1,400. 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 to and thanks to our biggest ever pension credit take-up campaign, we have seen an additional 33,500 pension credit awards in 2025, worth on average £87 a week, compared with the previous year.”
