Military veterans told they owe thousands of pounds over clerical error

More than 1,000 UK military veterans are facing reduced pension payments and demands to repay thousands of pounds following a series of clerical errors by pension administrators, the Ministry of Defence has confirmed.

The majority of the debt stems from 335 retirees who were collectively overpaid £5.1 million due to incorrect National Insurance calculations. The Ministry of Defence (MoD) confirmed that other administrative errors relate to Pension Sharing Orders, Early Departure Payments, and State Pension Age adjustments.

The Forces Pension Society, a support organization for military retirees, reported that many veterans are facing overpayment demands ranging from tens of thousands of pounds to six-figure sums, with monthly pension payouts immediately reduced to recoup the funds.

Ray Lawton, a 70-year-old Royal Artillery veteran who served 16 years, was informed he owed £8,000 following six years of overpayments. Days later, his monthly pension was cut from £550 to £365. Lawton expressed frustration, stating he trusted the military and pension administrators, and argued that the private administration company should take financial responsibility for the mistake.

Other former service members report similar hardship. Royal Navy veteran Andrew Thorburn, who served 36 years, was told he owes £26,438, resulting in his pension being cut by approximately £650 per month. Thorburn described the financial shock as ongoing and devastating. Royal Air Force veteran Barrie Goodwin owes £32,188, despite having contacted administrators six years ago to query higher payments, at which point he was told the figures were correct.

An MoD spokesperson acknowledged that pension payment errors cause uncertainty and stated the department is offering support to affected veterans. The spokesperson added that where payments were made in genuine error, the government has a responsibility to recover taxpayer funds in a sensitive and proportionate manner. According to the MoD, £304,000 has been recovered so far, with a third of those affected by National Insurance errors paying in full and 52 veterans agreeing to repayment plans.

However, former Defence Secretary Penny Mordaunt publicly questioned the recovery efforts, stating that public bodies have a duty to consider whether recouping costs makes financial sense. Mordaunt added that there is a compelling case for the debt to be wiped in many instances.

The veterans' pension scheme has been managed since 2023 by technology firm Sopra Steria, which subcontracted administration to the firm Equiniti. A Sopra Steria spokesperson stated that the errors leading to incorrect payments originated more than a decade before the company assumed the contract. Equiniti stated it could not discuss individual cases but noted that administering a scheme of such scale involves multiple organizations and processes over many years.

The Forces Pension Society is advising affected veterans to request detailed calculation breakdowns from Equiniti and to challenge the demands through the Internal Disputes Procedure, noting that a small number of veterans have successfully had their debts wiped after submitting formal complaints.