State pensioners are being reminded of an important Department for Work and Pensions (DWP) rule that could impact their eligibility for benefit support from the Government department.
Claimants of Pension Credit, a top-up benefit for older Britons on low income, who live outside the UK beyond the permitted timeframes will not receive payments which they otherwise would be entitled to.
Those of state pension in receipt of this support may be unaware of this crucial DWP "holiday" rule regarding travel outside of mainland Britain, which could lose them up to £3,900 a year on average.
Through Pension Credit, a weekly guarantee of up to £227.10 is awarded to claimants who are single, while couples get an amount worth up to £346.60 a week thanks to the benefit.
Older Britons are being reminded about a Pension Credit rule
GETTYOn its website, the DWP states: "We may pay Pension Credit for up to four weeks while you're temporarily away from Great Britain and we may pay for up to eight weeks if the absence is in connection with a death."
For those receiving medical treatment or medically approved convalescence abroad, Pension Credit payments may continue for up to 26 weeks but only in these specific circumstances.
The department noted : "You should tell us before you go if you're going to leave Great Britain for any reason at all, even if you'll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands."
Beyond travel rules, pensioners must report various changes in their circumstances to avoid penalties. This includes alterations to housing costs such as ground rent or service charges.
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Changes to benefits received by anyone in the household must also be declared, whether it is a new benefit or another payment being stopped. Pension Credit overpayments have soared to a record high of 10.3 per cent for the financial year ending April 2025, according to new data from the DWP.
This represents more than £610million of taxpayers' money being overpaid, a significant increase from £530million (9.7 per cent) in the previous year.
With fraud accounting for nearly half of these overpayments at £270million, up from £210million a year ago, the situation demands urgent attention from authorities.
Claimant error accounted for £240million of the overpayments, rising from £210million in the previous period.
Official errors, meanwhile, contributed the smallest portion at £100million, actually decreasing from £11 million previously.
The two main causes behind these costly overpayments have been identified in the DWP data. Under-declarations of financial assets and claimants remaining abroad for longer than permitted together account for £6 of every £10 overpaid in pension credits during the last financial year.
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Pensioners are worried about their future GETTY Pensioners failing to accurately report their savings, investments or property has led to significant overpayments.Pensioners must report modifications to occupational or personal pensions, including receiving a new pension or taking lump sums from pension pots.
Other reportable changes include variations in foreign pensions, Working Tax Credits, savings, investments or property.
The DWP warns: "You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances."
