The UK government is expanding its scrutiny of benefit claimants’ bank accounts. The move will see new anti-fraud powers, first associated with Universal Credit, applied to Pension Credit recipients.
The decision has drawn political and campaign-level attention, particularly over the potential impact on older people. Ministers say the aim is to curb fraud and overpayments, yet critics warn of unintended consequences for pensioners.
The Department for Work and Pensions (DWP) is preparing to “extend” enhanced bank account checks to those claiming Pension Credit, after initially focusing on Universal Credit. According to the Telegraph, campaigners fear that elderly claimants could face lengthy appeals if they are wrongly targeted.
Scrutiny Widens beyond Universal Credit
The expanded powers would allow the DWP to require banks to share specific information as part of fraud investigations. According to the Telegraph, these measures were first introduced in relation to Universal Credit and are now set to apply to Pension Credit as well.
Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, has urged caution. He told the Telegraph that the department’s new powers to access bank data “should have the risk of overreach mitigated against from the outset”. He added that the committee would monitor the department closely if the approach were used unfairly against elderly pensioners.
Official figures illustrate the financial backdrop. Overpayments of Pension Credit were estimated at £610 million in the last financial year, up from £530 million the previous year. In contrast, overpayments for Universal Credit reached £6.3 billion last year, down slightly from £6.4 billion the year before, according to official statistics.
Sir Geoffrey noted that Pension Credit has the lowest level of error and fraud among benefits. He stressed that the department must be “very careful” in how it conducts targeted reviews, particularly given the vulnerability of many claimants.
Campaigners Warn of Chilling Effect on Take-up
Advocacy groups for older people have voiced concern about the broader consequences of the policy. Dennis Reed, director of Silver Voices, described the review of Pension Credit claims as a “blunderbuss approach which is not justified”, according to the Telegraph.
Reed warned that the prospect of financial scrutiny could deter eligible pensioners from applying. “What worries me is that people will be put off applying for pension credit,” he said. He pointed out that current take-up stands at around two-thirds of those entitled to receive it.
That statistic is significant in itself. Pension Credit is designed to top up the incomes of the poorest pensioners, and under-claiming has long been a concern among charities and parliamentary committees. Reed added that many retirees would be anxious at the thought of their finances being “trawled over”.
The government’s objective is to reduce fraud and recover public funds. The scale of overpayments, particularly within Universal Credit, provides the context for tougher oversight. Yet Pension Credit operates in a different demographic and risk profile, something critics argue should shape enforcement.
