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| The Express, 10 March 2006 |
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| MILLIONS of hard-pressed pensioners face having their income slashed because of a catalogue of blunders by the Government. |
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| New figures obtained by the Daily Express last night show that the cost of mistakes in Pension Credit has more than trebled over the last three years. |
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| More than GBP 130million has been paid out in error. Now many of those who depend on the cash as a vital lifeline could be forced to pay money back, even though the mistakes are not their fault. Some households could lose as much as GBP 30 a week as Whitehall officials attempt to recoup the overpayments from next month. |
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| More than two million pensioners are already failing to claim the cash because of the baffling complexity of the system, which includes 40 pages of claim forms and explanatory notes. And figures show that many are struggling with the freephone Pension Credit helpline, with up to 3,600 calls abandoned every month as claimants are placed on hold by a computer answering system. |
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| The fresh blow for pensioners comes on top of soaring bills for council tax, gas and electricity. |
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| Tory MP David Ruffley, the Shadow Minister for Welfare Reform, said: "These new figures prove that ministers are running the Pension Credit system incompetently. |
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| "Many people over 60 face the prospect of being rung up by the Department for Work and Pensions asking for its money back. |
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| "The Government needs to explain why overpayments have trebled and give reassurances to affected pensioners that they will not be harassed and treated insensitively by Government officials." |
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Mr Ruffley, who uncovered the overpayments scandal in a written parliamentary answer, added: "Many elderly claimants potentially face the cash being snatched back. This Government has got form when it comes to clawing back overpayments. Ministerial incompetence brought us the shambles of tax credit overpayments."
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| Pension Credit was introduced by Labour to guarantee people aged over 60 a minimum income. Under the system, single old folk are entitled to have their weekly income topped up to GBP 109.45, while couples should get GBP 167.05. |
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| The benefit provides desperately needed extra cash on top of the basic state pension, currently GBP 82.05 for a single person and GBP 131.20 for a couple. |
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| The personal details needed to process the claims are so complicated, however, that more than 1.8million people eligible for Pension Credit do not bother applying. |
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| Many complain that the forms are intrusive, requiring an astonishing level of detail. |
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| Under Government rules, forced repayments may be waived if it would cause hardship. But the rules add: "Hardship must not be confused with inconvenience." |
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| Paul Bates, of Help The Aged, said last night: "The figures show in the starkest possible terms that the Government is failing in its efforts to improve take-up of Pension Credit among some of the most vulnerable people in the country." |
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| Age Concern said: "Many older people miss out because they don't realise that they are entitled to extra cash, don't know how to claim, find the process too intimidating and lengthy or feel there is a stigma attached." And Neil DuncanJordan, of the Pensioners Convention, said: "Pensioners feel the system is intrusive and they don't like dealing with officials. |
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| Complexity puts people off." |
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| Whitehall officials yesterday admitted to "teething problems" with Pension Credit, which was introduced three years ago. But Benefits Minister James Plaskitt said: "A number of initiatives have been introduced to focus on error. |
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| "The checking regime is more rigorous. These figures refer to a period before these measures were introduced." |
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| Protests over the low level of state pension are planned next week, which has been dubbed Pensions Action Week. |
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