Veterans minister Calvin Bailey has apologised for a major pensions overpayments error that has left some pensioners owing more than £100,000. The administrative fault, which dates back many years, affects military veterans' pensions due to mistakes in the Armed Forces' two final-salary schemes.
The schemes provided a guaranteed life-long income for some 432,000 retired service men and women. These pension payouts were overpaid for many years, with some veterans told they have to pay back more than £100,000. Pensioners affected could see their payments reduced to recover the overpaid amounts.
Government Acknowledges Responsibility
Officials at the Ministry of Defence first spotted the problem two years ago, but veterans have only recently started receiving letters informing them of the amounts owed. Speaking to the BBC's Money Box programme, Mr Bailey said: "I'm sorry that they [veterans] and we have arrived at this position. I recognise that receiving the totality of the error in one letter will be something that people will find quite difficult and shocking, and that is never a position that I want to see our service people in."
The minister confirmed the Government has launched an investigation into what went wrong and how it happened. He added: "Those people that are impacted should rest assured that we will work with them to make sure that we have tailored repayment plans, that the way in which we address this will be manageable, and I hope to be working closely with all of these people."
Veterans Face Significant Repayments
Sixty-eight-year-old Michael Evans told The Telegraph that he was told he owes £16,000. His monthly payments could be cut by £414 to make up for the loss.
Mr Bailey pointed affected veterans to support services. He said: "I would steer them towards our veteran services and to the helplines that are available, and we will do all we can to make sure that our response to this is as empathetic as it can be."
However, he stressed the Government has a duty to recover the funds. He said: "I have to be honest to say that we have a responsibility to the taxpayer to recover this money in some way, shape, or form. I hope we do that in a way that is reflective of the service of those people that have been impacted."
Veterans can find out more about benefits through the Discover my Benefits website.
