Thousands of pensioners could see their Pension Credit payments change as the Department for Work and Pensions (DWP) reviews selected claims.
The checks are intended to determine whether recipients are still receiving the correct amount based on their income, savings and other circumstances. Some pensioners could have their payments reduced or stopped, while others may find they are entitled to more support.
Around 1.4 million households currently receive Pension Credit, making the review relevant to a large number of older people on lower incomes.
Pension
Pension Credit is a means-tested benefit designed to provide additional financial support to people who have reached State Pension age and have a low income.
It can help with everyday living expenses and, depending on individual circumstances, housing costs and other eligible expenses.
For a single pensioner, Pension Credit can top up weekly income to £238, while couples can receive up to £363.25 a week. The average award is around £87 a week.
Eligibility is based on financial circumstances, which means changes in savings or income can affect the amount someone receives.
Review
The DWP is carrying out reviews of selected Pension Credit claims to check whether recipients are still receiving the correct amount.
The review was announced in the autumn Budget and forms part of wider efforts to reduce incorrect benefit payments and recover overpayments.
Selected claimants may be asked to provide bank statements or other information about their financial circumstances. The DWP can then compare the information with the details recorded when the Pension Credit claim was made or last updated.
The process is not expected to involve every Pension Credit recipient. Cases will be selected for review, although the DWP has not publicly detailed all of the criteria used to select them.
Savings
Savings can play an important role in determining Pension Credit entitlement.
The first £10,000 of a person’s savings is generally ignored for Pension Credit purposes. Above that threshold, every £500 of savings is treated as £1 of weekly income.
For example, someone with £11,000 in savings would have £1,000 above the threshold. That would result in £2 a week being treated as income when calculating entitlement.
| Savings | Amount above £10,000 | Assumed weekly income |
|---|---|---|
| £10,000 | £0 | £0 |
| £11,000 | £1,000 | £2 |
| £15,000 | £5,000 | £10 |
| £20,000 | £10,000 | £20 |
This means a change in savings does not necessarily result in Pension Credit stopping altogether. Instead, it can affect the amount a person is entitled to receive.
Changes
Financial circumstances can change after someone successfully claims Pension Credit.
A pensioner may gradually use savings to cover food, energy bills, housing costs and other everyday expenses. In that situation, their savings could fall below the amount previously recorded by the DWP, potentially increasing their entitlement.
The opposite can also happen. An inheritance, pension lump sum or other payment could increase someone’s savings and affect their entitlement.
This is why keeping the DWP informed about relevant changes is important. Information that was accurate when a claim was made may no longer reflect a person’s current financial position.
Payments
The review could result in different outcomes for different pensioners.
Some recipients may have been overpaid because their savings or income increased without the DWP being informed. Their future payments could be reduced, and the department may seek to recover money that was incorrectly paid.
Others could discover that their circumstances have changed in the opposite direction. If their savings have fallen or their income has reduced, a review could potentially identify that they are entitled to additional support.
Former pensions minister Sir Steve Webb has highlighted the importance of keeping benefit records up to date. He also noted that some claimants may not realise that changes in savings need to be reported.
Impact
The scale of the review could be significant. Estimates cited in the source material suggest around 95,000 to 100,000 claimants could eventually see their payments reduced.
For the current financial year, the DWP expects to recover about £15 million through the reviews. Around 10,700 claimants are expected to have their entitlement reduced, based on an average overpayment of approximately £1,400.
The number of people contacted for information could be higher than the number whose payments ultimately change.
A review does not automatically mean that a claimant has done anything wrong. Its purpose is to establish whether the financial information held by the DWP remains accurate.
Overseas
Time spent outside the UK can also affect benefit entitlement in some circumstances.
Personal finance experts have pointed out that prolonged periods overseas may contribute to incorrect payments if the DWP is not informed of relevant changes.
For pensioners receiving means-tested support, it is therefore important to understand the rules that apply to their particular circumstances before spending an extended period abroad.
Support
The Government says the review is intended to ensure that Pension Credit is paid correctly.
A DWP spokesperson said changes in a claimant’s circumstances can lead to a claim becoming incorrect and that reviewing claims allows the department to establish the correct entitlement.
The Government has also pointed to increased Pension Credit take-up following its campaign to encourage eligible pensioners to apply. According to the DWP, there were an additional 33,500 Pension Credit awards in 2025 compared with the previous year, with an average value of £87 a week.
For pensioners selected for a review, providing accurate and up-to-date information is important. Bank statements and other financial records can help the DWP establish whether savings and income have changed. A review could lead to a reduction, an increase or no change in payments, depending on the claimant’s circumstances.
