The Department for Work and Pensions (DWP) is reviewing selected Pension Credit claims as part of a wider effort to make sure pensioners are receiving the correct amount of support. Some claimants may be asked to provide recent bank statements so officials can check whether their income, savings or other financial circumstances have changed.
The reviews are expected to help the Government reduce incorrect payments while also identifying pensioners who may now qualify for more support. For anyone receiving Pension Credit, understanding how savings and income affect entitlement is important.
Reviews
Pension Credit is designed to provide additional financial support to people over State Pension age who have a low income. Around 1.4 million households currently receive the benefit.
The DWP has started contacting selected claimants for case reviews. The checks are intended to establish whether the information used when a claim was originally assessed is still accurate.
A claimant’s circumstances can change over time. Savings may increase after receiving an inheritance or pension lump sum, for example, while other households may spend savings on essential living costs.
Statements
Some pensioners undergoing a review may be asked for recent bank statements. These documents can help the DWP establish the amount of savings and income available to a claimant.
Being asked for bank statements does not necessarily mean a claimant has done anything wrong or will lose their Pension Credit. The purpose of the review is to compare current circumstances with the information held on the claim.
For some people, the review could result in a lower payment. For others, it could show that they are entitled to more support than they currently receive.
Savings
Savings play an important role in Pension Credit calculations. The first £10,000 of savings is disregarded when assessing entitlement.
Above that amount, every £500 of savings is treated as providing £1 a week of income for the calculation.
For example, someone with £11,000 in savings has £1,000 above the £10,000 threshold. That results in £2 a week being treated as additional income under the savings rules.
The calculation can therefore affect the amount of Pension Credit a person receives, although the overall assessment also considers other income and circumstances.
Changes
Financial circumstances can change significantly during retirement. A person might initially qualify for Pension Credit with modest savings but later receive an inheritance or take a pension lump sum.
Conversely, rising household costs can cause someone to use their savings for food, energy, housing and other essential expenses. If their savings have fallen substantially, their entitlement could potentially change.
This is why keeping the DWP informed about relevant changes is important. A review may identify either an overpayment or an amount that a claimant should have received but did not.
Recovery
The Government expects the Pension Credit review programme to recover around £15 million during the current year. The average overpayment being recovered is reportedly around £1,400 per case.
DWP figures indicate that the proportion of Pension Credit claims identified as overpaid reached 33% in the 2025/26 tax year, compared with 28% the previous year.
An overpayment does not automatically indicate deliberate wrongdoing. Changes in income, savings or personal circumstances can result in a claim no longer matching the information originally used to calculate the benefit.
Support
The reviews are taking place alongside efforts to increase Pension Credit take-up. The benefit can provide substantial additional income for eligible pensioners.
According to the DWP, its recent take-up campaign resulted in an additional 33,500 Pension Credit awards in 2025. Those awards were worth an average of £87 a week compared with the previous year.
The Government has also highlighted that many eligible pensioners still do not claim the support available to them. An estimated 761,000 eligible people did not claim Pension Credit during the last year covered by the figures.
For pensioners contacted by the DWP, responding to a review and providing the requested information can help ensure their claim reflects their current circumstances. For those who have not been contacted, it is still worth checking whether changes in income or savings could affect their entitlement.
Pension Credit rules can be difficult to navigate, particularly when savings and changing household finances are involved. The current reviews are intended to make sure payments are accurate, but they may also identify pensioners who are entitled to additional help. Anyone unsure about their position should check the latest guidance from the DWP or seek independent benefits advice.
