Pensioners to hand over bank statements in government benefits crackdown
Pensioners will have to hand over their bank statements to the government as part of its crackdown on the ballooning benefits system.
The Department of Work and Pensions (DWP) is preparing to inform pensioners they will need to provide bank statements as part of its review into Pension Credit claims, I News first reported.
The department is reaching out to thousands of recipients of the credit in its aim to cut £370m from the benefits bill.
Pension Credit is additional money from the government to help those over state pension age on low income with living and housing costs. For single people, it tops weekly income up to £238, while a couple receives £363.25. This amounts to £12,736 per year less than the full state pension.
The policy was originally unveiled by former chancellor Rachel Reeves during last year’s Autumn Budget and DWP has now begun making contact with selected customers for case reviews.
Handing over documents
The number of pensioners selected for scrutiny was not disclosed by the DWP. The department also declined to comment on how it is selecting cases for review.
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.”
The department added that upon finding customers who are being paid incorrectly, both overpaid and underpaid, it will seek to rectify the error and pay the correct amount.
Some claimants whose cases are examined will need to provide additional information, including recent bank statements.
The government expects to claw back £15m from the reviews alone, meaning roughly 10,700 claimants will have their entitlement reduced.
The average overpayment is estimated to stand at £1,400 per case.
According to statistics released by the DWP in May, the proportion of overpaid Pension Credit claims increased to 33 per cent in the 2025/26 tax year, up from 28 per cent the prior year.
The two drivers behind incorrect payments were identified as claimants failing to fully declare their financial assets or spending time overseas that surpassed the limit that benefit rules permit. By April 2031, the government expects to save £370m.
Persistent underclaiming
But despite the crackdown on Pension Credit claims, the benefit remains widely unclaimed by those who qualify for the payment.
Figures from Policy in Practice estimate that roughly 761,000 pensioners failed to sign up for the benefit in the last tax year, worth a total £1.6m.
Pension Credit is also often dubbed the ‘passport benefit’ as it is able to unlock eligibility for other forms of extra support, including a free TV licence and support with mortgages. Taken together, this could be worth up to £9,665 for the most vulnerable.
The government looked to combat the issue last October, launching a take-up campaign for the benefit, resulting in an extra 33,500 signing up.