A review of Pension Credit claims has been launched, reaching out to hundreds of thousands of recipients in a drive expected to trim £370million from the benefits bill by April 2031.
The campaign, which was originally unveiled by then-chancellor Rachel Reeves during last year’s Budget, has already seen the DWP begin making contact with “selected customers” for case reviews.
Estimates from The Independent indicate that between 95,000 and 100,000 claimants could ultimately have their payments cut as a result of the exercise.
The DWP has launched a new Pension Credit case review campaign
| GETTY
Pension Credit tops up the weekly income of low-income pensioners to £238 for individuals and £363.25 for couples, amounting to £12,376 per year less than the full state pension.
The actual number of pensioners selected for scrutiny is likely to be considerably higher than those who will see reductions, though the DWP has not disclosed its methodology for choosing cases.
In a communication to employment groups, the department stressed: “Being selected for a review does not mean the customer has done anything wrong.”
Claimants whose cases are examined may be asked to supply further documentation, including recent bank statements.
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Treasury projections published alongside the announcement suggest the DWP will recoup £15million through the reviews in the current year alone, with roughly 10,700 recipients expected to have their entitlements adjusted downwards.
The average overpayment identified is estimated at approximately £1,400 per case. Additional Pension Credit payments are also available for those with severe disabilities, caring duties, dependent children or specific housing costs.
Fraud and error data published by the DWP in May showed that overpayment rates for Pension Credit climbed sharply to 33 per cent during 2025/26, a significant jump from 28 per cent in the preceding year.
The two principal drivers behind these incorrect payments were claimants failing to fully declare their financial assets and spending longer periods overseas than the benefit rules permit.
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The review initiative mirrors a parallel effort targeting the Universal Credit system, where the government anticipates recovering £13.6 billion in overpayments by 2030. Despite the crackdown on overpayments, Pension Credit remains significantly underclaimed.
Research unit Policy in Practice has estimated that around 761,000 pensioners failed to take up the benefit during 2025/26, missing out on a collective £1.6million.
The benefit is frequently described as a “passport” entitlement because it can open the door to further support, including housing benefit, mortgage assistance and a free TV licence.
For the most vulnerable recipients, the total package can be worth as much as £9,665. A Government take-up campaign launched last October generated 33,500 additional awards.
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.”