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NHS pensions 'overpaid for years' NHS pensions 'overpaid for years'
(20 minutes later)
Hundreds of thousands of retired NHS and armed forces staff may have been overpaid for "decades" in their public sector pensions, MPs have been told. The pensions of tens of thousands of retired NHS, armed services and other public sector staff have been overpaid for decades, the government has said.
Lib Dem spokesman Vince Cable said he had been told Xafinity Paymaster, which pays out public sector pensions, had been making "excessive" payments. About 5% of staff were affected by overpayments worth "tens of millions" of pounds, some made since the 1970s.
He said he hoped bailiffs would not be turning up at ex-soldiers' homes. Earlier Lib Dem MP Vince Cable asked for assurances bailiffs would not be turning up at ex-servicemen's doors.
Chancellor Alistair Darling said people would not have to repay the money but adjustments would be needed from 2009. Chancellor Alistair Darling said the money need not be repaid but pensions would be adjusted from April 2009.
A written statement from the Cabinet Office is expected to be published on Tuesday. The issue was raised in the Commons earlier by Mr Cable, the Lib Dem Treasury spokesman, who said he was informed about the problem 10 days ago by a BBC Radio Ulster journalist.
'Potentially enormous''Potentially enormous'
Mr Cable said he had been alerted to the problem 10 days ago by a journalist on BBC Radio Ulster. He told MPs he had held off saying anything until Monday at the request of Sir Gus O'Donnell, the head of the civil service, who had asked for time to alert pensioners involved.
He added she had "understood that this company had been paying out excessive public pensions to hundreds of thousands of public sector pensioners and that this error had just been discovered and the company were about to start retrieving the money from the pensioners". But during a Queen's Speech debate, Mr Cable said the journalist had understood that a company, Xafinity Paymaster - a former public body which pays out public sector pensions - had been "paying out excessive public pensions to hundreds of thousands of public sector pensioners".
After making inquiries he learned there had been a problem, but had been asked by the head of the civil service last Thursday not to publicise it for a few days to give the government time to notify pensioners. It will be necessary to adjust what's paid for the future Chancellor Alistair Darling
During a debate on the Queen's Speech, he asked Mr Darling how many people were involved, how much money was involved and what steps would be taken to retrieve the overpayments, "which I understand in some cases go back decades and are potentially enormous". She said that the "error had just been discovered and the company were about to start retrieving the money from the pensioners".
Mr Cable asked Mr Darling how many people were involved, how much money was involved and what steps would be taken to retrieve the overpayments, "which I understand in some cases go back decades and are potentially enormous".
Mr Cable added: "I hope none of us can face the possibility of large numbers of ex-servicemen suddenly being faced with bailiffs turning up and asking them to repay overpayments, as we've already discovered in the appalling incidences regarding tax credits."Mr Cable added: "I hope none of us can face the possibility of large numbers of ex-servicemen suddenly being faced with bailiffs turning up and asking them to repay overpayments, as we've already discovered in the appalling incidences regarding tax credits."
Mr Darling intervened a few moments later, saying: "You were asking about repayments of money that has been overpaid. 'No blame'
"I'd think it'd be better I make it clear that isn't going to happen. It will be necessary to adjust what's paid for the future." Mr Darling intervened a few moments later, said the money would not have to be repaid but added: "It will be necessary to adjust what's paid for the future."
He added: "It does need to be put right from next year. There will be a statement tomorrow from the Cabinet Office."He added: "It does need to be put right from next year. There will be a statement tomorrow from the Cabinet Office."
Later a Cabinet Office spokeswoman told the BBC about 5% of public sector workers, from all over the UK, were affected, which she estimated would be tens of thousands of people.
They include retired NHS and armed services personnel and other public sector workers. A letter informing them what has happened, and how it will affect them, will go out on Tuesday.
She said no blame was being attached to Xaffinity Paymaster and, as it had been going on for decades, it would be wrong to blame any particular government.