Royal Artillery veteran Ray Lawton has been ordered to repay £8,000. Hundreds of former members of the military have had their pensions reduced after receiving letters instructing them to repay thousands of pounds due to a clerical error. The Ministry of Defence (MoD) confirmed to the BBC that more than 1,000 retired service personnel are being pursued for debts. The majority, 335 veterans, were overpaid a total of £5.1 million as a result of incorrect National Insurance calculations. The Forces Pension Society stated it is aware of a small number of veterans whose debts were canceled after filing a formal complaint.
Ray Lawton, 70, was informed in July that he owed £8,000 following six years of overpayments. Shortly thereafter, his monthly military pension was reduced from £550 to £365. "I haven't got £8,000 to pay out," said Lawton, who served 16 years in the Royal Artillery. "I've got a little bit put aside but nowhere near that much."
Lawton's notification was sent from Equiniti, the company administering the pension scheme on behalf of the MoD. The letter indicated that an error in the system had resulted in years of overpayments. Lawton is among many veterans from across the UK who have contacted BBC Your Voice after receiving unexpected letters demanding repayment.
The Forces Pension Society, a not-for-profit organization that supports military retirees, reported that many overpayment cases involve sums running into the tens of thousands of pounds, with a few veterans being informed they owe six-figure amounts. The MoD confirmed that errors related to National Insurance adjustments, Pension Sharing Orders (PSO), Early Departure Payments (EDP), and State Pension Age (SPA) are being investigated on a case-by-case basis. Of the 335 veterans affected by National Insurance errors, a third have fully repaid their debts, and 52 have established repayment plans. So far, £304,000 of the £5.1 million has been repaid.
Veterans have expressed a desire for more clarity regarding the debt and its calculation, with some advocating for the debts to be canceled. The government stated it has a responsibility to recover the funds. An MoD spokesperson acknowledged that errors in pension payments "may cause uncertainty," and indicated that the department is reaching out to veterans and providing support as needed. "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," the spokesperson added.
Former Conservative defense secretary Penny Mordaunt remarked that while public bodies have a duty to recoup such costs if it is financially sensible, no such assessment has been made in these cases, and there is a compelling case for many debts to be canceled.
Royal Navy veteran Andrew Thorburn has been informed that he owes more than £26,000. Lawton stated he does not want taxpayers to bear the burden, expressing willingness to have his pension adjusted to the correct amount but believes the private company should cover the costs of what he perceives as their mistake. "I think they should take responsibility for it because it's not my fault," he said. Thorburn, who served 36 years in the Royal Navy, has seen his pension reduced by approximately £650 per month due to his debt.
Barrie Goodwin, an RAF veteran, reported being told he must repay £32,188 after receiving higher payments than expected. He mentioned that he had previously confirmed the accuracy of his payments and is now facing financial difficulties as a result of the repayment demand. "If the debt isn't waived, I will really struggle," he said.
Equiniti stated it could not discuss individual cases but acknowledged the concerns raised by pensioners. A spokesperson noted that the decision to recover taxpayer money was not their responsibility, explaining that administering a scheme of this scale involves multiple organizations, systems, and processes over many years. Technology company Sopra Steria has managed the veterans' pension scheme since 2023 and subcontracted the administration to Equiniti. A Sopra Steria spokesperson indicated that the errors leading to incorrect pension payments occurred over a decade before their contract began and assured that they are collaborating with the MoD and Equiniti to implement long-term safeguards.
The Forces Pension Society advises anyone receiving an overpayment letter to verify its authenticity, request additional information from Equiniti, and utilize the right to file a complaint through the Internal Disputes Procedure.