DWP urges Brits going on holiday to act now or risk £3,900 payment

The has urged Brits going on holiday to act quickly or risk losing a £3,900 payment. Those claiming Pension Credit, a for low-income pensioners, may lose out on payments if they live abroad outside the allotted amount of time.

The DWP is cracking down on overpayments, which hit a record high of 10.3% at the end of the last financial year (April 2025). These overpayments amount to more than £610 million of taxpayers' money, up from £530 million last year. Fraud accounted for 44% of this (£270 million), claimant error for 39% (£240 million), and official error for 16% (£100 million).

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.

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."

Pension Credit is a weekly guarantee of up to £227.10 for single claimants and £346.60 for couples. Claimants must be over State Pension age and on a low income.

Claimants may be unaware of a crucial DWP "holiday" rule regarding travel outside of mainland Britain, which could cost them up to £3,900 a year on average.

However, the DWP has said that they will only pay this for four weeks while a claimant is outside the UK. This can go up to eight weeks if the absence is the result of a death, or 26 weeks for those receiving medical treatment abroad.

The department said: "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."

In addition to this, claimants must declare changes to their circumstances, such as increasing housing costs, to avoid penalties. They must also declare changes to benefits claims for others in their household.