The Department for Work and Pensions (DWP) has announced an important update that will affect millions of pensioners across the UK. Starting from 28 September 2025, new banking rules will apply to how pensions and other state benefits are paid.
This change has raised concerns among older people, especially those who may not be familiar with online banking or who rely on traditional payment methods. If you or your loved ones receive the State Pension or other DWP-related payments, it is vital to understand what these rules mean and how to stay prepared.
Let’s break down the changes, why they are happening, and what pensioners need to do to avoid any disruption to their income.
What Are the New Bank Rules?
From September 28, the DWP will only send pension and benefit payments into bank accounts that meet updated verification and security requirements. This is part of a broader government effort to reduce fraud and protect public money.
In simple terms, pension payments will no longer be made to accounts that cannot prove the account holder’s identity or accounts held under another person’s name. The DWP has made it clear that pensions must go directly to the pensioner’s own verified account.
Why Has the Government Introduced These Changes?
The UK government has been under pressure to tighten financial rules due to rising cases of fraud and identity theft. Each year, billions of pounds are lost through scams, overpayments, and fraudulent claims.
By introducing stricter banking rules, the DWP aims to:
- Make sure pensions are paid to the correct person.
- Stop criminals from using fake or stolen bank accounts.
- Protect older people from scams involving redirected payments.
- Modernise the payment system in line with banking security standards.
For pensioners, this means extra protection, but it also requires action if their current account does not meet the new rules.
Who Will Be Affected?
Every pensioner in the UK who receives the State Pension or other benefits such as Pension Credit, Attendance Allowance, or Personal Independence Payment (PIP) may be affected.
The changes are especially relevant if:
- You use a joint account with a family member.
- Your pension is paid into someone else’s account (such as a carer’s).
- You still receive payments through outdated or non-standard accounts.
- Your bank account has not gone through recent ID verification checks.
Those who already have modern bank accounts with regular ID verification may not notice much difference, but it is still worth checking with your bank.
What Happens If Pensioners Don’t Update Their Accounts?
This is where the urgency comes in. Pensioners who fail to update their bank details or verify their accounts could see their payments paused or delayed.
The DWP has stated that payments will not be sent to accounts that do not meet the new rules. Instead, they will be held until the pensioner provides updated information.
That means a real risk of missing out on essential income for bills, food, and daily living if the rules are ignored.
What Pensioners Need to Do Now
To make sure payments continue smoothly after September 28, pensioners should take the following steps:
- Check Your Bank Account
Contact your bank or building society to confirm that your account is fully verified and meets government security standards. - Ensure the Account Is in Your Name
If your pension is currently being paid into a family member’s or carer’s account, you will need to switch it to one in your own name. - Update Your Details with DWP
If you change your account, make sure you inform the DWP as soon as possible. This can usually be done online, by phone, or by post. - Be Aware of Scams
With these changes, scammers may try to take advantage by pretending to be from the DWP or your bank. Always double-check official communications and never share personal details with unknown callers.
Support for Pensioners Who Struggle with Technology
The government is aware that many pensioners are not confident with online banking or digital ID checks. For this reason, additional support is being made available.
- Banks will provide in-branch services to help older people update their details.
- The DWP is setting up helplines for pensioners who need assistance.
- Charities such as Age UK will be offering guidance to help vulnerable pensioners adjust.
This support is designed to make the transition smoother and reduce stress for those who rely on face-to-face banking.
How This Affects Joint Accounts
A major concern for many pensioners is joint accounts. The DWP has confirmed that pensions can still be paid into joint accounts as long as the pensioner is a named holder on the account and identity checks are up to date.
However, payments into accounts held only in the name of a partner, carer, or family member will no longer be allowed. This means anyone relying on another person’s account must switch before the deadline.
Will This Affect Overseas Pension Payments?
Yes, but with some differences. UK pensioners living abroad who receive their State Pension into overseas bank accounts will also need to make sure those accounts meet verification requirements. The DWP is working with international banks to ensure compliance, but pensioners abroad are advised to double-check well in advance.
What About Those Without a Bank Account?
Some pensioners still do not have bank accounts and may have been using the Post Office Card Account service in the past. That scheme officially closed in 2022, and now all payments must be made into standard bank accounts.
If you still do not have a bank account, you will need to open one immediately. Most high street banks offer basic accounts with no fees, designed for people on benefits or pensions.
How to Avoid Payment Delays
To avoid disruption, pensioners should act before the September 28 deadline. Delays are most likely if:
- Account details are changed at the last minute.
- ID checks with banks take longer than expected.
- The DWP is not informed of the new account details quickly enough.
Experts recommend updating your details at least two weeks before the rule change to be safe.
Wider Impact on Pensioners’ Finances
While this update focuses on security, it also highlights the increasing digitalisation of pensions and benefits. More services are moving online, which can leave some pensioners feeling left behind.
However, there are also advantages. The new system is designed to:
- Reduce the risk of fraud.
- Ensure quicker and more reliable payments.
- Give pensioners more control over their finances.
It does, however, underline the importance of digital inclusion and the need for ongoing support for older citizens.
Final Thoughts
The DWP’s new bank rules mark one of the biggest changes to pension payments in recent years. While the aim is to protect pensioners and public funds, it does require action from millions of people.
Every pensioner in the UK should check their bank account status, ensure their details are up to date, and make any necessary changes well before 28 September 2025.
Failing to act could mean delayed payments and unnecessary stress. Acting now will provide peace of mind and ensure a smooth transition into the new system.
The bottom line is simple: don’t ignore this update. Take the time to check your account, contact your bank if needed, and keep your pension secure.