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95,000 pensioners 'were overpaid' 95,000 pensioners 'were overpaid'
(about 1 hour later)
An estimated 95,000 public sector pensioners have been overpaid £126m since 1978, the Cabinet Office says.An estimated 95,000 public sector pensioners have been overpaid £126m since 1978, the Cabinet Office says.
The civil servants, teachers, NHS workers, judicial and armed services personnel have been getting about £250 too much per £10,000 of pension.The civil servants, teachers, NHS workers, judicial and armed services personnel have been getting about £250 too much per £10,000 of pension.
The money is not having to be repaid but many involved face pension cuts.The money is not having to be repaid but many involved face pension cuts.
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.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.
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.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, and retired armed services, judicial staff and civil servants in Scotland will see their pensions cut.
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."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 what has happened.
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'
But the Royal British Legion said the letters were "non specific" so people did not yet know what their new pension payments would be.
Shadow chief secretary to the Treasury, Philip Hammond, said: "It is completely unacceptable for the government just to tell pensioners they have been affected but refuse to give them the full facts until January.
"95,000 people will now face a Christmas of uncertainty and fear, wondering what is going to happen to their pensions."
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.
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 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.
Banking bailoutBanking bailout
He said some pensioners would have their payments reduced while others would get below-inflation increases.
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 comments
Liberal Democrat Treasury spokesman Vince Cable, who first raised the issue in the Commons, said the figures highlighted "decades of incompetence".Liberal Democrat Treasury spokesman Vince Cable, who first raised the issue in the Commons, said the figures highlighted "decades of incompetence".
HAVE YOUR SAYWhy should retired public sector workers pay for yet more government mistakes? Pensions should not be cutFV, UKSend us your comments
"The government must not claw back any money from the workers affected," he said."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.""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". He said if people faced "big reductions" to pensions they should be staggered but added 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". Mervyn Kohler, of Help the Aged, said he was pleased pensioners were not being asked to pay "for a mistake that wasn't theirs" and urged pensioners to check if they are entitled to benefits.
"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. But Chris Simpkins, of the Royal British Legion, told the BBC he had seen one of the letters that had gone out and added: "There is not a hint of an apology or a recognition that people are going to be troubled by this. I find that quite unbelievable."
He said many people on low fixed incomes and facing high food and fuel costs would be very worried about getting a below-inflation increase and "in some cases therefore are going to see quite a significant reduction in their weekly income".


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