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.
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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).
This equates to £12,376 a year – below the full state pension.
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.
Taken together, the benefit could be worth up to £9,665 for the most vulnerable pensioners, but it has historically gone vastly underclaimed.
Around 761,000 pensioners are estimated to have missed out on the benefit in 2025/26, figures from research unit Policy in Practice have found – worth a combined £1.6 million.
Last October, the government launched a take-up campaign for the benefit, resulting in an extra 33,500 awards.
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 to and thanks to our biggest ever Pension Credit take-up campaign, we have seen an additional 33,500 Pension Credit awards in 2025, worth on average £87 a week, compared with the previous year.”
