The Department for Work and Pensions (DWP) has issued an urgent warning to state pension claimants who are planning to travel abroad this summer.
Older Britons receiving Pension Credit—a benefit designed to supplement low incomes—risk losing up to £3,900 annually if they fail to comply with specific travel rules laid out by the government.
In this article, we will break down what this ‘holiday rule’ means, who it applies to, and how claimants can protect their payments while temporarily away from Great Britain.
What Is Pension Credit?
Pension Credit is a means-tested benefit provided by the DWP to help low-income pensioners. It offers two parts:
- Guarantee Credit, which tops up weekly income to £227.10 for single pensioners and £346.60 for couples.
- Savings Credit, for those who have modest savings or income, offering an extra amount.
While it’s a vital lifeline for over 1.4 million older Britons, many remain unaware of the rules about traveling abroad, which could interrupt or even stop their benefit.
DWP Holiday Rule – What You Need to Know
The DWP’s “holiday” rule states that claimants must inform the department of any planned travel outside Great Britain, even if the trip is short or to nearby locations like Northern Ireland, the Channel Islands, or the Isle of Man.
Here’s what the official rules say:
| Reason for Absence | Maximum Time Pension Credit Is Payable |
|---|---|
| Holiday or General Travel | Up to 4 weeks |
| Travel due to a Bereavement | Up to 8 weeks |
| Medical Treatment or Medically Approved Recovery | Up to 26 weeks |
Important:
- Great Britain excludes Northern Ireland, so travel there still counts as being away.
- If you fail to notify the DWP, or stay beyond the permitted timeframe, you may lose your entitlement and could even face repayment penalties.
How £3,900 Is at Risk
If a claimant unintentionally violates this rule, they could miss out on weekly Pension Credit payments. Here’s the math:
- £227.10/week (single person) x 52 weeks = £11,809.20/year
- Missing 17 weeks of payment (due to travel) = £3,860.70 potentially lost
That’s nearly £3,900 in lost income—a substantial blow for pensioners who rely on this support.
You Must Also Report These Changes
Besides travel, the DWP requires pensioners to report changes in circumstances, including:
- Change in address or housing costs (e.g., ground rent, service charges)
- Anyone moving in or out of your home
- New benefits being claimed by anyone in your household
- Hospital stays or care home admissions
Failure to report these changes may result in overpayments, which must be paid back and can trigger fraud investigations.
Pension Credit Overpayments on the Rise
Recent data from the DWP reveals a sharp rise in Pension Credit overpayments, reaching a record high of 10.3% in the financial year ending April 2025.
| Year | Overpayment Amount | Fraud Component | Claimant Error |
|---|---|---|---|
| 2024–25 | £610 million | £270 million | £240 million |
| 2023–24 | £530 million | £210 million | £210 million |
This trend not only wastes taxpayer money but also places extra scrutiny on all claimants. Staying compliant with DWP rules is more important than ever.
What Should You Do Before Going on Holiday?
If you’re planning summer travel and currently receive Pension Credit:
- Notify the DWP before you leave – include destination and dates.
- Confirm if your reason qualifies for extended coverage (bereavement, medical reasons).
- Avoid long stays abroad unless exempt under the extended criteria.
- Report any other life changes that could affect your entitlement.
This ensures your payments continue and you avoid penalties or overpayment notices.
The DWP’s holiday travel rules are crucial for anyone receiving Pension Credit. With summer travel on the rise, Britons must be extra vigilant to avoid losing up to £3,900 per year. A simple failure to notify the DWP could lead to stopped payments, overpayments, and unnecessary stress.
To safeguard your entitlements, always inform the DWP before traveling, stay within the permitted timeframe, and report any changes in your circumstances. Staying informed ensures that your state pension support remains secure—at home or abroad.
FAQs
Can I receive Pension Credit while visiting Northern Ireland or the Isle of Man?
No, those destinations are considered outside Great Britain, and the same rules apply as traveling overseas.
Do I need to reapply for Pension Credit after coming back from holiday?
No, but you must inform the DWP of your return and ensure you remained within the allowable timeframe to continue receiving payments.
What happens if I forget to notify the DWP about my travel?
You may face suspension of payments, penalties, and could be asked to repay overpaid benefits.