Hundreds of former military personnel have had their pensions cut after receiving letters demanding repayment of thousands of pounds due to clerical errors. The Ministry of Defence (MoD) confirmed that over 1,000 retired service personnel are being pursued for these debts.
The majority of these cases, 335 veterans, were overpaid a total of £5.1m because of incorrect National Insurance calculations. Other errors relate to Pension Sharing Orders, Early Departure Payments, and State Pension Age adjustments. The MoD is investigating these issues on a case-by-case basis.
Ray Lawton, 70, was informed in July that he owed £8,000 following six years of overpayments, leading to his monthly military pension being cut from £550 to £365. Another veteran, Andrew Thorburn, has been told he owes £26,438, resulting in a pension reduction of around £650 per month.
The government states it has a responsibility to recover taxpayer funds. However, former Conservative defence secretary Penny Mordaunt has suggested there is a compelling case for some debts to be wiped, arguing that no assessment has been made on whether recouping costs makes financial sense in these instances.
Equiniti, which administers the pension scheme for the MoD, stated it is not responsible for the decision to recoup funds but acknowledged the concern caused. Sopra Steria, the technology company in charge of the scheme since 2023, noted that the errors originated over a decade before they took over the contract.