Veterans told to repay thousands after pension overpayment errors

Hundreds of military veterans are facing demands to repay thousands of pounds after their pensions were overpaid because of a clerical error. Many say they are living in financial limbo and facing debts they did not know they owed.

Barry, who served in the RAF from 1977 to 1993, saw his pension increase by a few hundred pounds six years ago. He queried the rise at the time. "I queried why I was receiving this money. It was not my mistake. I received that money in total good faith," he said. He has now been told to repay £32,188.55. The stress has hit him while he recovers from prostate cancer for a second time.

Andrew, from Truro, was told to repay £26,500. "This is hanging over us and the stress of it. I just cannot describe to you," he said. His two sons have served in the military, one still serving. He said the treatment of veterans sends the wrong message to young people considering a career in the armed forces.

Ray, in Portsmouth, received a letter demanding repayment of £8,000. "I was shocked. There's no way I could pay back that 8,000 pounds," he said. "I've trusted the army all my life, even when I left, and then this letter comes and it's just torn it all out."

The veterans minister has asked for more information from the companies running the pension scheme. Sopra Steria manages the scheme on behalf of the Ministry of Defence and subcontracted the administration to a financial services firm called Equinity. Both companies have said they were not responsible for the decision to recoup the money. Sopra Steria said it regretted the distress caused and that the errors originated over a decade before it took over the contract. It said it sought guidance from the MOD as soon as the issue was identified.

The Ministry of Defence said that where payments have been made in genuine error, it has a responsibility to recover taxpayer funds and will always seek to do so in a sensitive and proportionate way.

All the veterans who contacted the BBC said they are happy for their pensions to be cut to the correct level, but do not believe they should have to cover the overpayment. "I think it's despicable. They're now saying, yes, we've made this mistake. However, you're going to pay for it," one said. As the MOD investigates on a case-by-case basis, the veterans are left with huge financial and emotional uncertainty.