Overview
- Official figures for 2024/25 show 28 out of every 100 Pension Credit claims were overpaid, totalling £610 million, driven by £270 million in fraud, £240 million in claimant errors and £100 million in departmental mistakes.
- Separate DWP data indicates three in every 100 claims were underpaid, amounting to roughly £70 million, mainly from official errors on additional elements such as severe disability payments.
- The Eligibility Verification Measure under the 2025 Act will allow the DWP to require information from banks and other financial institutions to confirm entitlement and identify incorrect payments.
- Implementation will follow a test‑and‑learn rollout in 2026, starting with Universal Credit, Pension Credit and Employment and Support Allowance.
- Ministers plan case reviews for Pension Credit and say human decision‑makers will oversee any flags, with the state pension explicitly excluded from the new checks.