Labour Party minister Andrew Western has issued a warning
DWP set to begin crackdown on state pensioners who are on one benefit
State pensioners are being “overpaid” Pension Credit – with the Department for Work and Pensions (DWP) set to act. Labour Party minister Andrew Western has issued a warning to Pension Credit claimants.
Mr Western said: “The Department is taking action to reduce incorrectness in all benefits. The Public Authorities (Fraud Error and Recovery) Act 2025 Eligibility Verification Measure requires banks and financial institutions to provide data that will enable the Department to check the accuracy of awards.
“We are also introducing case reviews in Pension Credit to help ensure customers continue to receive the correct benefit amount.” Out of every 100 claims lodged in the 2024/2025 year, 28 resulted in overpayments totalling £610 million.
READ MORE Tenerife prepares contingency plan with UK tourists warned
For the most recent week of available data (week commencing 16 data February 2026), there were 11,710 outstanding outstanding Pension Credit claims in Great Britain still to be processed.
Outstanding claims at week commencing 16 February 2026 has decreased by 65%, or 21,980 fewer outstanding claims, compared to a year previous (week commencing 17 February 2025).
He said: “We have been clear that this information does not imply any wrongdoing, and this measure simply provides a source of data that feeds into long-standing processes in the Department for Work and Pensions, where layers of support and specialist staff already exist to support those who are vulnerable or have complex needs.”
Jon Greer, head of retirement policy at Quilter, said: “Given that pension credit is targeted at some of the most financially vulnerable pensioners, the system needs to strike a careful balance between accessibility and fraud prevention and it appears to be struggling on both fronts.
“A large share of overpayments stemmed from people failing to declare financial assets or staying overseas for longer than the rules permit, highlighting the difficulty of monitoring eligibility for a means-tested benefit with complex rules.”
Speaking last year, Mr Greer said: “Underpayments of pension credit, while lower in proportion, still amounted to £70 million, and nearly £7 in every £10 underpaid was due to administrative failings.”
Steve Webb, partner at LCP and former Liberal Democrats Pensions Minister, said: “Given how complex the system is, it can be hard for people to know if they are getting the right amount or not, so it is all the more important that the Government gets it right.”