Have you been overpaid in the government’s latest gaff? According to the National Audit Office (NAO) and BBC Online £90m extra has been paid to public sector pensions. Retired soldiers, teachers, doctors and nurses have all be affected by the error, and 31,000 of whom will see their income drop as a result next year. However, the number affected is expected to rise.

The overpayments have been sourced back to 1978 when there was a mix up with the indexation of certain pensions. Some schemes did not have the required information recorded which meant that they did not apply the correct annual cost of living.

The real worrying issue is that the problem was highlighted years ago but the agencies who were involved refused to take responsibility for the situation. NAO pointed fingers at HM Revenue and Customs, the five pension schemes, and the Pension, Disability and Carers Service for passing the buck on.

The NAO has urged for these groups to work closer together as it feared there were continual risk of further payment errors. In particular the NAO has suggested it wanted to have a review to see if the process can be simplified.

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