Particle.news
Download on the App Store

DWP Sets 2026 Start for Pension Credit Fraud Reviews Under New Bank-Check Powers

Officials forecast £500 million in savings, with 4,000 staff plus new recovery powers targeting errors across the welfare system.

Overview

  • Full case reviews of Pension Credit will run from 2026 to 2029 across about 1.4 million recipients, with retrospective amendments that can reduce or stop payments if inaccuracies are found.
  • New legislation authorizes bank account verification for Universal Credit, Pension Credit and Employment and Support Allowance, along with direct withdrawals to recover debts owed to the DWP.
  • The department has allocated roughly £300 million this year to the review programme, adding operational capacity to intensify checks on eligibility and undeclared changes.
  • Universal Credit overpayments reached 9.7% in 2024/25, equating to more than £6.3 billion, underscoring the push to curb fraud and error.
  • The DWP cites targeted case reviews that prevented about £1 billion in UC errors, while OBR forecasts suggest UC fraud and error could fall to 4.7% by 2028/29 and system-wide to 2.8%.