Military veterans told they owe thousands of pounds over clerical error

Hundreds of former military personnel are facing demands to repay thousands of pounds after their pensions were reduced due to a clerical error. The Ministry of Defence (MoD) has confirmed to the BBC that over 1,000 retired service members are being pursued for debts. A significant portion, 335 veterans, were overpaid a total of £5.1 million due to incorrect National Insurance calculations.

Ray Lawton, a 70-year-old Royal Artillery veteran, is among those affected, having been ordered to repay £8,000. In July, he was informed of the debt, accumulated over six years of overpayments, and subsequently saw his monthly military pension cut from £550 to £365. Lawton, who served 16 years, stated, "I haven't got £8,000 to pay out. I've got a little bit put aside but nowhere near that much." The Portsmouth-based veteran expressed his dismay, telling the BBC, "I've trusted the army all my life even when I left and I trusted my pension would be right. Then this letter comes and it's just blown it all out."

Lawton's letter, sent by Equiniti, the company administering the pension scheme for the MoD, attributed the overpayments to a system error. He is one of many veterans across the UK who contacted BBC Your Voice after unexpectedly receiving letters demanding money they were unaware they owed.

The Forces Pension Society, a non-profit supporting military retirees, has noted numerous overpayment cases, some reaching tens of thousands of pounds, with a small number of veterans being told they owe six-figure sums. The MoD has acknowledged errors related to National Insurance adjustments, Pension Sharing Orders (PSO), Early Departure Payments (EDP), and State Pension Age (SPA), stating it is investigating each case individually.

Of the 335 veterans impacted by National Insurance errors, one-third have fully repaid their debt, and 52 have established repayment plans. So far, £304,000 of the £5.1 million has been recovered. Veterans are seeking greater clarity on the debt calculations and some have called for the debts to be waived.

The government maintains its responsibility to recover these funds. An MoD spokesperson informed the BBC that they recognize the "uncertainty" caused by pension payment errors and are contacting veterans to "provide support for anyone who requires it." 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."

However, former Conservative defence secretary Penny Mordaunt argued, "While public bodies have a duty to recoup such costs if it makes financial sense to do so, no such assessment has been made in these cases. There is a compelling case in many instances for the debt to be wiped."

Ray Lawton believes the private company responsible for the error should cover the cost, not the taxpayer. "I think they should take responsibility for it because it's not my fault," he said.

In Truro, Royal Navy veteran Andrew Thorburn, who served 36 years, shares this sentiment. He has been told he owes £26,438, resulting in a monthly pension reduction of approximately £650. "I think it's despicable that they are now saying 'yes, we've made this mistake however you're going to pay for it'. How can I forgive the government for that?" he questioned, describing the financial shock as "absolutely devastating and it's still ongoing."

RAF veteran Barrie Goodwin also faces a significant repayment of £32,188. Six years ago, he contacted Equiniti after receiving a higher payment than expected and was assured it was correct due to reaching state pension age. Now, he must repay the overpayment. "I checked, was told it was all correct and now have to repay it," he said. "I'm already cutting back on luxuries. I was helping one of my grandchildren through nursery - that's had to change. If the debt isn't waived, I will really struggle."

Equiniti, while unable to discuss individual cases, acknowledged the concern among pensioners. A spokesperson stated that the company is not responsible for the decision to recoup taxpayer money, but noted that "administration of a scheme of this scale involves multiple organisations, systems and processes over many years."

Sopra Steria, the technology company that took over the veterans' pension scheme in 2023 and subcontracted administration to Equiniti, stated that "errors that led to incorrect pension payments originated over a decade before Sopra Steria took over the contract." The company affirmed it is "working closely with the MoD and Equiniti to ensure robust safeguards are in place for the long term."

The Forces Pension Society advises any veteran receiving an overpayment letter to verify its authenticity, request further information from Equiniti, and exercise their right to complain through the Internal Disputes Procedure. The society also noted that a small number of veterans have had their debts wiped after filing a formal complaint.