DWP tells pensioners to prove they need their benefits in bid to slash 100,000 claims

Hundreds of thousands of pensioners are set to be contacted by the Department for Work and Pensions (DWP) as it begins work to cut £370 million from the benefits bill.

The department said it has started contacting “selected customers” as part of a Pension Credit case review campaign, first announced by former chancellor Rachel Reeves at last year’s Budget.

Around 95,000 to 100,000 claimants are expected to see their payments reduced over the course of the work, estimates calculated by The Independent suggest.

The number of Pension Credit claimants who are selected for review will likely be much higher, although the DWP has declined to share how it is selecting cases.

In an update to employment groups, it said: “Being selected for a review does not mean the customer has done anything wrong.”

Some claimants will need to provide additional information if their case is reviewed, the message added, which could include recent bank statements.

Details of the Pension Credit review drive released by the Treasury last year show that the government expects it to save £370 million by April 2031.

This year alone, the DWP is set to claw back £15 million from the reviews. This will mean around 10,700 claimants seeing their entitlement reduced, based on an average overpayment of £1,400.

Pension Credit provides a financial top-up to those above pension age who are on a low income. It can boost weekly income to £238 for single claimants (or £363.25 for couples).

There are also extra rates payable to claimants who have a severe disability, caring responsibilities, young children or certain housing costs.

It comes after a similar drive to reduce overpayments in the Universal Credit system, which the government projects will save £13.6bn by 2030.

Fraud and error statistics released by the DWP in May revealed that the proportion of Pension Credit claims overpaid rose to 33 per cent in 2025/26, up from 28 per cent the year before.

The two main causes of this were claimants under-declaring their financial assets, or going abroad for a longer period than is allowed under the rules.

Pension Credit is often called a ‘passport’ benefit as it can also unlock eligibility for extra support like housing benefit, support with mortgages and a free TV licence.