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95,000 pensioners 'were overpaid' 95,000 pensioners 'were overpaid'
(39 minutes later)
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. An estimated 95,000 public sector pensioners have been overpaid £126m since 1978, the Cabinet Office says.
Retired civil servants, NHS workers, teachers, judicial and armed services personnel were given too much money. The civil servants, teachers, NHS workers, judicial and armed services personnel have been getting about £250 too much per £10,000 of pension.
The government said the money need not be repaid, as this would not be cost-effective, but many face pension cuts. The money is not having to be repaid but many involved face pension cuts.
But the SNP says retired council, fire and police workers in Scotland will not see their pensions reduced. However the Scottish National Party has said in Scotland it will not cut the pensions of fire, council and police workers even if they are overpaid.
The party's work and pensions spokesman John Mason said overpayments will not be removed next year in the areas where the Scottish government has powers to act. SNP work and pensions spokesman John Mason said they wanted to avoid pension cuts but the UK Treasury had refused consent to amend pension regulations for 6,000 retired teachers and NHS staff in Scotland.
'Bureaucratic bungle' They, and retired armed services, judicial staff and civil servants in Scotland will see their pensions cut.
They said the Treasury had refused consent to amend pension regulations for 6,000 retired teachers and NHS staff in Scotland. They, and retired armed services, judicial staff and civil servants in Scotland will see their pensions cut.
Mr Mason said the Treasury "must reconsider" adding: "It's time for common sense to prevail. No pensioner should have to suffer for this bureaucratic bungle."
This government has been in power for a lot of years. They have to get a better grip David CameronConservative leader Q&A: Pensions blunderPension errors 'go back decades'This government has been in power for a lot of years. They have to get a better grip David CameronConservative leader Q&A: Pensions blunderPension errors 'go back decades'
Mr Mason said the Treasury "must reconsider" adding: "It's time for common sense to prevail. No pensioner should have to suffer for this bureaucratic bungle."
Letters are being sent to pensioners across the UK explaining how they will be affected.Letters are being sent to pensioners across the UK explaining how they will be affected.
The overpayments, averaging about £1,300 per person in total, began in 1978 and were caused by an "incorrect indexation" of pensions.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. In a written statement to MPs, Cabinet Office minister Liam Byrne said an estimated 5% of public service pensioners had been affected, and promised a National Audit Office investigation.
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.
He promised that the National Audit Office would carry out an investigation.
Banking bailoutBanking bailout
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."
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
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. Liberal Democrat Treasury spokesman Vince Cable, who first raised the issue in the Commons, said the figures highlighted "decades of incompetence".
He said: "This is small beer by comparison with the banking bailout but it's a lot of money to a lot of people." "The government must not claw back any money from the workers affected," he said.
"Pensioners should not have to pay the price for government error."
He said if people faced "big reductions" to pensions they should be staggered but in the end, people should be paid "no more and no less than the pension they are entitled to".
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."
Mervyn Kohler, of Help the Aged, said the government's response "seems fair and responsible".
"We're pleased pensioners are not being asked to pay for a mistake that wasn't theirs," he said, urging those pensioners who find themselves worse off to check if they are entitled to benefits.
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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