Pensioners to hand over bank statements in benefits crackdown

Pensioners to hand over bank statements in benefits crackdown

The government is cracking down on benefits (C) Vitaly Gariev on Unsplash

Pensioners will be forced to hand over their bank statements to the Department for Work and Pensions as part of the government’s crackdown on the growing benefits system.

The DWP is aiming to cut £370m from the benefits bill and will inform thousands of pensioners they will need to provide bank statements as part of its review into Pension Credit claims.

Pension Credit was created to help those over state pension age on low incomes with housing and living costs. It tops up the weekly income for single people up to £238, while a couple receives £363.25, amounting to £12,736 per year, less than the full state pension.

Former Chancellor of the Exchequer Rachel Reeves unveiled the crackdown in her Budget last Autumn. The i Paper reports that DWP has now begun contacting selected customers for case reviews. It is not known how many pensioners have been selected for scrutiny.

The DWP declined to comment on how cases were being selected 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,” adding that it is seeking to rectify its error over customers who were both overpaid and underpaid.

The Labour Government is expecting to claw back £15m from the reviews alone, resulting in around 10,700 claimants having their entitlements reduced. The DWP is estimated to have overpaid on average around £1,400 per case.

DWP released statistics in May, revealing that the proportion of overpaid Pension Credit claims increased from 28% in the prior tax year to 33% in the 2025/26 tax year.

It found that incorrect payments were identified where claimants failed to fully declare their financial assets, or spent time overseas beyond the limit permitted under benefit rules.

Join Scotland's business professionals in receiving our FREE daily email newsletter
Share icon
Share this article: