The Department for Work and Pensions (DWP) is contacting selected Pension Credit claimants as part of a large-scale review designed to make sure payments reflect people’s current circumstances.
The government expects the work to reduce the benefits bill by £370 million by April 2031. Estimates suggest that around 95,000 to 100,000 claimants could eventually see their payments reduced, although significantly more people are expected to have their claims reviewed.
The DWP has stressed that being selected for a review does not mean a claimant has done anything wrong. Some pensioners may simply be asked to provide additional information, potentially including recent bank statements.
Review
The Pension Credit review programme was first announced by former chancellor Rachel Reeves at last year’s Budget. The DWP has now started contacting selected customers as the department works through cases.
The department has not disclosed exactly how it is choosing claims for review. This means pensioners cannot assume that being contacted indicates an error or suspected wrongdoing.
In an update provided to employment groups, the DWP said: “Being selected for a review does not mean the customer has done anything wrong.”
The department has also indicated that some claimants will need to provide further information so their entitlement can be checked against their current circumstances.
Savings
The government expects the review programme to save £370 million by April 2031.
The savings are expected to build over several years rather than occurring all at once. During the current year, the DWP expects to recover around £15 million through the reviews.
Based on an estimated average overpayment of £1,400, around 10,700 claimants could see their entitlement reduced during the year.
| Measure | Estimate |
|---|---|
| Expected savings by April 2031 | £370 million |
| Expected savings this year | £15 million |
| Claimants estimated to have reduced entitlement this year | 10,700 |
| Average overpayment used in estimate | £1,400 |
| Estimated total claimants affected over the programme | 95,000-100,000 |
The figures relate to reductions arising from the review programme and should not be interpreted as the number of people who will necessarily lose Pension Credit altogether.
Pension
Pension Credit is intended to provide additional financial support to people above State Pension age who have a low income.
The benefit can increase weekly income to around £238 for a single claimant or £363.25 for a couple, depending on circumstances and the applicable rules.
There are also additional amounts available in some circumstances, including for people with severe disabilities, caring responsibilities, young children or certain housing costs.
Because Pension Credit is based on financial circumstances, changes in income, savings or other relevant details can affect entitlement.
This is one reason the DWP says regular reviews are necessary. A person’s financial position can change after an original claim has been assessed.
Overpayments
The review campaign comes as DWP figures show that Pension Credit overpayments have become more common.
Fraud and error statistics released by the department in May showed that 33% of Pension Credit claims were overpaid in 2025/26, compared with 28% the previous year.
The DWP identified two major factors behind the increase. Some claimants had under-declared their financial assets, while others had spent longer abroad than permitted under the relevant rules.
An overpayment does not necessarily mean that a claimant deliberately provided incorrect information. Changes in circumstances or incorrect information can result in a payment no longer matching a person’s entitlement.
That is why the department is reviewing selected cases and requesting updated information where necessary.
Support
Pension Credit is sometimes described as a “passport” benefit because receiving it can help people qualify for other forms of support.
Depending on individual circumstances, Pension Credit can provide access to additional help with housing costs, mortgage support and a free TV licence, among other assistance.
The combined value of Pension Credit and associated support can therefore be significant for some pensioners.
At the same time, the benefit has historically been underclaimed. Research from Policy in Practice estimated that around 761,000 pensioners missed out on Pension Credit during 2025/26.
The research estimated the combined value of the unclaimed support at around £1.6 billion.
Takeup
The government has also been trying to increase the number of eligible pensioners claiming Pension Credit.
In October last year, the DWP launched a campaign aimed at improving take-up. The department said the campaign resulted in an additional 33,500 Pension Credit awards in 2025 compared with the previous year.
The average value of those additional awards was reported at £87 a week.
This creates two parallel strands of the government’s Pension Credit work. One is aimed at ensuring eligible pensioners receive support they are entitled to, while the other focuses on checking existing claims and reducing incorrect payments.
The two objectives are not necessarily contradictory. A review can result in a payment being reduced where circumstances have changed, but it can also help ensure that people receive the correct amount when their circumstances are properly recorded.
Checks
For pensioners contacted by the DWP, the important point is that a review does not automatically mean their Pension Credit will be stopped or reduced.
The department says selected claimants may be asked for information to confirm their current circumstances. Providing the requested details can allow the DWP to reassess the claim and establish the correct level of entitlement.
The broader review programme is expected to affect a relatively small proportion of the overall Pension Credit caseload, although the number of cases selected for review is expected to be considerably higher than the number ultimately facing payment reductions.
The DWP says its objective is to ensure that claimants receive the amount they are entitled to under the rules. For pensioners receiving Pension Credit, keeping relevant financial and personal information up to date remains important, particularly when circumstances change.
