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95,000 pensioners 'were overpaid' 95,000 pensioners 'were overpaid'
(20 minutes later)
An estimated 95,000 people have been overpaid a total of £126m as a result of errors in public sector pensions, the Cabinet Office has said. An estimated 95,000 people have been overpaid a total of £126m over 30 years as a result of errors in public sector pensions, the Cabinet Office has said.
Retired health service workers and armed services personnel are thought to be among those given too much money, with problems starting 30 years ago. Retired civil servants, health service workers, teachers, judicial workers and armed services personnel were given too much money.
Letters are being sent to pensioners explaining how they will be affected.Letters are being sent to pensioners explaining how they will be affected.
Ministers say the money need not be repaid but thousands still face pension cuts. The government said the money need not be repaid, as this would not be cost-effective, but many face pension cuts.
The overpayments average about £1,300 per person, although it is not clear how much the overpayment is per year. The overpayments, averaging about £1,300 per person in total, began in 1978 and were caused by an "incorrect indexation" of pensions. If evenly spread over the 30 years it would equal overpayments of about £3.70 a month each.
'No single cause''No single cause'
In a statement to MPs, Cabinet Office minister Liam Byrne said it would not be "cost-effective" to try to retrieve the money from individuals. In a statement to MPs, Cabinet Office minister Liam Byrne said an estimated 5% of public service pensioners had been affected, but there had been "no single cause" for the errors.
The overpayments had been taking place since 1978, but there was "no single cause" for the errors, he added. He promised that the National Audit Office would carry out an investigation.
Asked about the situation at his monthly press conference, Conservative leader David Cameron said: "You have to ask why this was allowed to go on for such a long time.Asked about the situation at his monthly press conference, Conservative leader David Cameron said: "You have to ask why this was allowed to go on for such a long time.
"This government has been in power for a lot of years. They have to get a better grip.""This government has been in power for a lot of years. They have to get a better grip."
The issue was raised in the House of Commons by Liberal Democrat Treasury spokesman Vince Cable, who was informed about the problem 10 days ago by a BBC journalist. The issue was raised in the House of Commons on Monday by Liberal Democrat Treasury spokesman Vince Cable, who was informed about the problem 10 days ago by a BBC journalist.
HAVE YOUR SAYWhy should retired public sector workers pay for yet more government mistakes? Pensions should not be cutFV, UKSend us your commentsHAVE YOUR SAYWhy should retired public sector workers pay for yet more government mistakes? Pensions should not be cutFV, UKSend us your comments
He said: "This is small beer by comparison with the banking bailout but it's a lot of money to a lot of people."He said: "This is small beer by comparison with the banking bailout but it's a lot of money to a lot of people."
On Monday Chancellor Alistair Darling said the money would not have to be repaid, but he added: "It will be necessary to adjust what's paid for the future. It does need to be put right from next year."On Monday Chancellor Alistair Darling said the money would not have to be repaid, but he added: "It will be necessary to adjust what's paid for the future. It does need to be put right from next year."
Scottish National Party work and pensions spokesman John Mason said it looked like "an extremely serious issue" and described Mr Darling's comments as "very worrying".Scottish National Party work and pensions spokesman John Mason said it looked like "an extremely serious issue" and described Mr Darling's comments as "very worrying".
He said: "Pensioners must not lose out. We need to know exactly what has happened and exactly what the UK government plan to do."He said: "Pensioners must not lose out. We need to know exactly what has happened and exactly what the UK government plan to do."
Are you affected by the pensions announcement? Tell us about your situation by completing the form below.Are you affected by the pensions announcement? Tell us about your situation by completing the form below.
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