B1 Intermediate · 299 words · 2 min read

UK Veterans Face Demands to Repay Millions After Pension Errors

The Ministry of Defence says more than 1000 retired service personnel are being pursued for debts caused by mistakes in pension calculations.

Hundreds of former members of the British military have had their pensions cut after receiving letters telling them to repay thousands of pounds because of a clerical error.

The Ministry of Defence (MoD) confirmed to the BBC that more than 1000 retired service personnel are being pursued for debts. The majority, 335 veterans, were overpaid a total of £5.1m because National Insurance was calculated incorrectly. Of that money, £304,000 has been paid back. A third of the 335 have paid their debt in full and 52 have agreed a repayment plan. The MoD also confirmed errors linked to Pension Sharing Orders, Early Departure Payments and State Pension Age, and said each case is being investigated separately.

Ray Lawton, 70, who served 16 years in the Royal Artillery, was told in July that he owed £8,000 after six years of overpayments. Days later his monthly pension was cut from £550 to £365. "I haven't got £8,000 to pay out," he said. His letter came from Equiniti, the company that runs the scheme for the MoD.

An MoD spokesperson said errors "may cause uncertainty" and that veterans are being contacted and supported. Where payments were made in genuine error, the spokesperson added, the government has a responsibility to recover taxpayer funds "in a sensitive and proportionate way". Former defence secretary Penny Mordaunt said there was "a compelling case in many instances for the debt to be wiped".

Equiniti said it could not discuss individual cases but recognised the concern caused. Sopra Steria, which has run the scheme since 2023 and subcontracted the work to Equiniti, said the errors began more than a decade before it took over the contract. The Forces Pension Society advises veterans who receive a letter to check that it is genuine and to ask for more information.

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