DWP Permanent Secretary Peter Schofield confirmed the policy shift during a recent appearance before the Commons Select Committee, where he outlined the department’s renewed focus on verifying eligibility across multiple benefits. His comments follow expanded powers granted to the DWP to access bank account data, as part of a broader anti-fraud strategy under the Labour government.
According to Schofield, the department is shifting its attention to Pension Credit due to the complexity of the eligibility requirements and the scale of losses previously identified in Universal Credit. He cited “capital fraud” and “abroad fraud” as the two main areas of concern within the Pension Credit system, both of which are now subject to increased scrutiny through new data-sharing arrangements and digital monitoring tools.
Focus Shifts from Universal Credit to Pension Credit
Following sustained efforts to tackle fraudulent claims within Universal Credit, the DWP is now turning its attention to Pension Credit. According to Peter Schofield, the shift comes after significant progress in reducing fraud and error rates in Universal Credit, which had been the department’s primary concern due to the scale of financial loss involved.
Speaking before MPs, Schofield explained, “Where we’ve focused on fraud and error really hard – and we’ve started with Universal Credit because it was the biggest area of loss we’ve seen big improvements – we can now turn our attention to Pension Credit as well.”
He identified the main areas of vulnerability within Pension Credit as relating to capital declarations and eligibility violations involving prolonged stays abroad. According to Schofield, claimants sometimes fail to disclose savings or extended periods overseas, both of which can affect their entitlement to benefits. “The biggest areas of fraud and error in Pension Credit relate to capital, and also abroad fraud, so people who are claiming who are abroad for longer than they are allowed to be,” he told the committee.
These revelations align with a broader government initiative aimed at minimising public spending losses due to incorrect or deceitful benefit claims. According to the department, the measures being introduced mirror those successfully implemented for Universal Credit, including access to third-party data sources and real-time eligibility monitoring.
New Verification Tools and Legislative Backing
The enhanced checks are supported by new legislative powers that allow the DWP to access personal financial data, including transaction history and capital levels held in bank accounts. According to Schofield, this data access will also be used to identify patterns that suggest potential fraud, including money movements that might indicate extended stays outside the UK.
“We’re also using access to data. Some of the things that we’re doing to drive down fraud and error in Universal Credit are also relevant to Pension Credit,” he said. The same data-sharing channels used to track income for Carer’s Allowance via HMRC are now being applied to other benefits, enabling cross-referencing of earnings and transactions.
A further element of the strategy includes the introduction of an “eligibility verification measure” which, according to Schofield, will allow the department to identify suspicious activity abroad. This is designed to tackle what he termed “abroad fraud”, where claimants remain outside the UK beyond the period permitted under benefit eligibility rules.
The DWP is also conducting a targeted case review within the Pension Credit scheme, aiming to assess current claims for inconsistencies or undeclared changes in circumstance. The department has stated it will continue encouraging benefit recipients to report changes that could affect their entitlement, as part of a wider push for transparency and compliance.
