Pension credit payments are set to come under increased scrutiny as part of a wider benefit fraud crackdown being carried out by the Department for Work and Pensions (DWP).
Ministers have been ramping up efforts to reduce benefit fraud, having introduced a new law granting sweeping investigatory powers and the ability to take money directly from fraudsters’ bank accounts.
The DWP has also said it will carry out a review of pension credit, a benefit received by around 1.4 million people. It’s one of several plans for the benefits system as the government commits to saving £14.6bn in money lost to fraud and error by 2030.
Speaking to the Work and Pensions Committee last week, the DWP’s permanent secretary Peter Schofield said: “I reassure you that where we have focused on fraud and error hard, and we started with Universal Credit because it was the biggest area of loss, we have seen big improvements.
“We can now turn our attention to Pension Credit as well. We are also doing a targeted case review so we will add that to the list on Pension Credit.”
How will the Pension Credit crackdown work?
A review of Pension Credit claims that are “at risk of being incorrect” will start from 2026 and end in 2029.
A DWP spokesperson said this is “forecast to save £500 million over this period” and is part of “wider action to save £14.6 billion by 2031”.
The Public Authorities (Fraud, Error and Recovery) Act 2025, which received royal assent in December and will be implemented throughout the year, also includes measures to tackle pension credit fraud.
The law gives the DWP the power to issue eligibility verification notices to banks and other financial institutions, which are then required to check accounts against specific criteria for benefits to identify incorrect payments.
The DWP has plans to save £14.6 billion by 2031 by cracking down on fraud and other overpayments.
(Michael Kemp)
At last week’s committee hearing, Schofield said there was “a complication in the eligibility” for pension credit.
“The biggest areas of fraud and error in Pension Credit relate to capital and abroad fraud, so people who are claiming who are abroad for longer than they are allowed to be under the eligibility of the benefit,” he said.
“The eligibility verification measure in the Act will allow us to pick up on transactions that are made abroad,” he added. “That picks up on abroad fraud as well. We are doing a lot of work building on the work we have done on Universal Credit.”
How much can the government take from my pension credit?
If you are repaying a Pension Credit overpayment, the amount the government can take from you each week is capped.
The standard rate of deduction for overpayment recovery of Pension Credit since April 2025 is £13.95 per week.
However, there is a higher rate of £37.20 per week in cases of fraud where the debtor has either been convicted, has admitted the offence under caution, or has accepted a penalty.
The government adds that the amount that can be deducted can be increased by “half of the disregard” applied to part-time earnings, charitable or voluntary payments and war pensions.
A rate of 38.40 per week has been proposed for fraud overpayments of pension credit for the financial year of 2026.
How can I check if I’m still eligible for Pension Credit?
If you’re not sure if you are still eligible to receive Pension Credit, you can read the government’s eligibility guide here.
You can also answer questions in this Pension Credit calculator, which asks you questions about your circumstances to see if you are eligible. Financial support charity Turn2US also has a similar calculator on its website.
Alternatively, you can call the Pension Service on 0800 731 0469. If you can’t hear or speak over the phone, you can use the communication service Relay UK by dialling 18001 then 0800 731 0469.
There is a British Sign Language (BSL) video relay service if you have a computer, and a Welsh language helpline on 0800 731 0453. Lines are open Monday to Friday, 8am to 6pm (except public holidays).
How can I challenge the government if I’m wrongly accused of fraud?
If you believe you have been wrongly accused of fraud, there are several actions you can take to prove you are entitled to the money you’ve been paid.
Gather evidence: Collect any documents that detail your financial history and payments, like your tenancy agreement or bank statements.
Mandatory reconsideration: You can ask the DWP to look at their decision again. This is called a mandatory reconsideration. You should do this within one month of the decision being made. If you miss the deadline, you may still be able to request reconsideration if you have a good reason.​
Appeal to tribunal: If the mandatory reconsideration upholds the decision, you can appeal to an independent tribunal called the Social Security and Child Support Tribunal. This tribunal is separate from the DWP and will examine your case impartially. You need to submit an appeal within one month of the reconsideration decision, but late appeals (up to 13 months) may be accepted with a valid reason.​
Appeal process: You can appeal online or by post using the SSCS1 form. The tribunal may hold a hearing by phone, video call, or in-person, where you can present your case. If you win, the decision will be changed, and any penalties or repayments may be cancelled or reduced.​
Seek advice: Advice services like Citizens Advice or welfare rights organisations can help with the appeal and gather evidence to support your case.​
Other actions: If accused of benefit fraud beyond an overpayment, you have the right to legal representation and can challenge investigations or penalties through this tribunal route.
A DWP spokesperson said: “We do not use automated decision making in the targeted case review process. The decision on benefit entitlement is made by a human caseworker.
“We have an obligation to protect public funds. By reviewing claims, we can ensure claimants are receiving the correct entitlement and avoid falling into or accumulating further debt.”