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| The Times, 10 March 2006 |
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| THOUSANDS of elderly people may have to pay back part of their pension credit after officials gave out millions of pounds extra by mistake. |
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| The level of overpayments of the means-tested pension credit and income support for pensioners has risen threefold in just four years, from £ 40 million in 2001-02 to £ 130 million in 2004-05. |
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| The Department for Work and Pensions attempted to reassure pensioners last night that they would not be plunged into penury if they have been overpaid. |
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| The DWP said that it would not attempt to reclaim the cash if this would cause hardship. The rules state that repayment can be waived "if it would cause hardship -but hardship must not be confused with inconvenience". |
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| A spokesman also admitted that part of the rise in overpayments was due to "a transition period" when new staff were being trained. |
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| If it was proved that the overpayment was due to official error, the money could not be clawed back. However, if the overpayment was due to a pensioner filling out the form incorrectly, the Government had the right to ask for its money back. |
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| Treasury efforts to reclaim tax credits have led to outrage as poor families were plunged into debt and hardship by unexpected demands for the return of long spent money. The Treasury may have to write off millions of pounds of taxpayers' money. |
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| David Ruffley, the Conservative welfare spokesman, said that the figures showed that ministers were running the pension credit system "incompetently". He said: "This Government has got form when it comes to clawing back overpayments. |
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| Ministerial incompetence brought us the shambles of tax credit overpayments. |
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| "These new figures showing a trebling of overpayments prove that Ministers are running the Pension Credit system incompetently." |
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| However, the Government said that pensioners were clearly benefiting from the system. |
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| "Pension Credit continues to deliver more money to the poorest pensioners with over three million getting more money as a direct result," said James Plaskitt, the Benefits Minister. |
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| "These figures refer to a period before these measures were introduced and during a time of massive change." |
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| Employers will be banned from forcing workers to retire before 65 as part of age discrimination laws announced by the Government yesterday. |
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| Older workers will also be able to ask if they can stay on beyond the age of 65, and will get protection from unfair dismissal and redundancy. |
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