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| Daily Mail, 10 March 2006 |
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| THOUSANDS of pensioners may face the misery of having to hand back money to the Government in a new scandal of overpaid benefits, it was predicted last night. |
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| Figures show that overpayments of Labour's flagship pension credit have trebled in the last three years. |
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| As many as one in 50 of those who qualify for the top-up around 165,000 could have been given too much money. |
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| The Tories warned that many could expect demands to return the money, given the Government's record of clawing back overpaid benefits. |
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| Tory welfare spokesman David Ruffley, who uncovered the figures through Parliamentary questions, said: 'Pension credit overpayment has trebled in the last three years from Pounds 40million in 2001-2002, to Pounds 50million in 2002-2003, Pounds 100million in 2003-2004 and now Pounds 130million in 2004-2005. |
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| 'This is 2.1 per cent of pension credit payments. Many elderly claimants potentially face a clawback of overpaid money.' The Department for Work and Pensions insisted no attempt would be made to recoup overpaid benefits except in the most obvious cases, in which recipients should have realised they were being paid far too much. |
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| A spokesman added: 'We understand that people are on low incomes and we would always ask for the money to be paid back sensitively. Generally, we wouldn't ask for money back when it's our fault and it's not obvious.' But Mr Ruffley said the Government's own accounting rules meant repayment could be waived only if it would cause serious hardship, which 'must not be confused with inconvenience'. |
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| He added: '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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| 'Ministers are running the pension credit system incompetently. |
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| The Government needs to explain why overpayments have trebled and needs to give reassurances to affected pensioners that they will not be harassed and treated insensitively by Government officials.' Campaigners have called on ministers to write off all the debts, saying many elderly people would struggle to pay the money back. |
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| Mervyn Kohler, of Help the Aged, said: 'It is not their fault the Government is not doing its sums properly. It's a Byzantine system. I don't believe anybody would have the slightest idea whether they were being overpaid or underpaid. |
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| 'To chase anyone for recovery of this money when it's the Government's mistake would be a bit on the heartless side.' Pension credits were introduced by Chancellor Gordon Brown to help those on the lowest incomes. |
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| The row over the payments follows chaos in Labour's tax credits system, introduced in 2003 to help low earners. |
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| In 2004, around one third of the six million households eligible for tax credits received overpayments. |
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| The Revenue's attempts to claw back the money at least Pounds 2billion caused some serious hardship. |
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| Pensions minister James Plaskitt said: 'Pension credit continues to deliver more money to the poorest pensioners, with more than three million getting more money as a direct result. |
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| 'A number of initiatives have been introduced to focus on error. The checking regime is more rigorous.' |
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| COMPANIES could be banned from forcing workers to retire at 65, the Government said yesterday. |
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| Retirement ages could be scrapped under proposals revealed as part of a crackdown on age discrimination. |
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| The Department of Trade and Industry said a review would be held in five years to consider whether to 'abolish retirement ages'. However, from October, if approved by Parliament, rules forbidding a retirement age of less than 65 will apply. |
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| Those wanting to work beyond 65 will have the right to ask to stay on. But companies will only be legally obliged to 'consider' the application and will have the right to refuse it. |
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| Trade Secretary Alan Johnson described it as 'not work till you drop but choose when you stop'. |
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| But business leaders said a ' cutoff point' was essential. |
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| Susan Anderson, a director at the CBI, said: 'Employers need to have the right to say: "Now is the time for you to go with dignity".' Without a retirement age, companies would be forced to sack workers if they insisted on keeping their jobs, but were no longer up to the task. |
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