Pensioners to hand over bank statements as benefits crackdown begins

The Department of Work and Pensions (DWP) has told pensioners receiving Pension Credit that they may be asked to provide recent bank statements as part of a fresh audit of the scheme.

The move follows a policy announced by former chancellor Rachel Reeves in last year’s Autumn Budget, which pledged to tighten controls on the benefit that tops low‑income retirees’ weekly earnings at £238 for singles and £363.25 for couples.

Why the DWP is acting now

Statistics released in May showed over‑payments rising from 28 % to 33 % of claims in the 2025/26 tax year. The primary causes were undeclared assets and extended stays abroad that breach benefit rules. By tightening verification, the department hopes to claw back about £15 million from the current round of reviews and ultimately save £370 million by 2031.

“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 DWP says the exercise will also correct under‑payments, ensuring those who are entitled receive the full amount.

Impact on claimants

About 10,700 pensioners are expected to see their entitlement reduced, with the average over‑payment estimated at £1,400 per case. Those selected will receive a letter outlining the documents required, typically recent bank statements and details of any overseas travel.

Despite the crackdown, the benefit remains under‑claimed. Research by Policy in Practice estimates that roughly 761,000 eligible pensioners missed out on the payment in the last tax year, a shortfall worth around £1.6 billion. Pension Credit also acts as a “passport benefit”, unlocking free TV licences and mortgage support that together can be worth up to £9,665 for the most vulnerable.

What comes next

The DWP will continue to contact selected claimants over the coming months. Those found to have been over‑paid will be asked to repay the excess, while under‑paid individuals will receive the additional amount owed. The department has not disclosed how many people will be selected for review, but the initiative signals a broader push to tighten welfare spending while protecting genuine need.

Stakeholders will be watching the rollout closely, as the outcome could shape future reforms of other means‑tested benefits.