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 [...]
Starting in 2025, the government plans to request bank statements from pensioners as part of its effort to curb overspending in the benefits system. The Department of Work and Pensions (DWP), the government agency responsible for welfare, is targeting Pension Credit recipients in an effort to save £370 million annually.
Pension Credit is an additional government payment meant to supplement the incomes of elderly individuals living on low wages. The credit is valued at £238 per week for single recipients and £363.25 for couples, which totals £12,736 annually. This amount is significantly lower than the full state pension, which is valued at £162.60 each week.
The DWP has not disclosed the exact number of pensioners chosen for case reviews, nor commented on the selection process. The department is contacting claimants for reviews, with some individuals needing to provide recent bank statements as part of the evaluation. The government forecasts that around 10,700 claimants will have their entitlement reduced, with the overpayment average at £1,400 per case.
In the 2025/26 tax year, the proportion of overpaid Pension Credit claims rose to 33%, up from 28% the previous year. The two primary reasons for incorrect payments are claimants failing to disclose their financial assets accurately or spending time abroad beyond the permitted limit.
By April 2031, the government anticipates saving £370 million through this crackdown. However, many pensioners are still unaware of their eligibility for Pension Credit. According to figures released in May 2024 by the DWP, approximately 761,000 pensioners failed to sign up for the benefit in the previous tax year, amounting to a total of £1.6 billion in unclaimed payments.
Pension Credit is often referred to as the 'passport benefit' because it unlocks eligibility for other forms of assistance, such as a free TV license and support with housing costs. These benefits could be worth up to £9,665 for the most vulnerable individuals. To address this issue, the government launched a take-up campaign for the benefit in October 2023, resulting in an additional 33,500 sign-ups.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
