Hundreds of former UK military personnel are facing demands to repay thousands of pounds after clerical errors led to pension overpayments. The Ministry of Defence (MoD) confirmed that over 1,000 retired service members are being pursued for these debts.
The majority of these cases, affecting 335 veterans, stem from incorrect National Insurance calculations, resulting in a total overpayment of approximately £5.1 million. The MoD confirmed that errors also occurred related to Pension Sharing Orders (PSO), Early Departure Payments (EDP), and State Pension Age (SPA).
One veteran, 70-year-old Ray Lawton, who served 16 years in the Royal Artillery, was informed in July that he owed £8,000 due to six years of overpayments. Shortly after receiving the notification, his monthly pension was reduced from £550 to £365. Lawton expressed distress, stating he does not have the means to repay such a sum and that the letter has shaken his lifelong trust in the military and pension system.
These letters were reportedly sent by Equiniti, a company that administers pension schemes on behalf of the MoD. Veterans have contacted media outlets after receiving unexpected demands for money they were unaware they owed.
The Forces Pension Society, a non-profit organization supporting military retirees, indicated that it is aware of numerous overpayment cases where debts have reached tens of thousands of pounds, and a small number of veterans have been notified of six-figure sums owed.
The MoD stated it is investigating these issues on a case-by-case basis. Of the 335 veterans affected by National Insurance errors, one-third have fully repaid their debt, and 52 have arranged repayment plans. To date, £304,000 of the £5.1 million has been recovered.
Veterans are calling for greater clarity on how these debts were calculated and have suggested that the debts should be waived. However, the government maintains its responsibility to recover public funds. An MoD spokesperson acknowledged that errors in pension payments can cause uncertainty and assured that the department is contacting affected veterans to offer support. The spokesperson added, "Where payments have been made in genuine error, we have a responsibility to recover taxpayer funds and will always seek to do so in a sensitive and proportionate way."
Penny Mordaunt, a former Conservative defence secretary, argued that while public bodies have a duty to recoup costs, the financial sense of doing so in these specific cases has not been assessed. She believes there is a strong argument for wiping the debt in many instances.