Cable: Government must come clean on pension overpayments

4.50.00pm GMT Tue 16th Dec 2008

Responding to the Government’s admission that approximately 100,000 public service pensions have been overpaid across the UK over 30 years, Liberal Democrat Shadow Chancellor, Vince Cable said: "These figures highlight decades of incompetence. Ministers apparently knew about this in March but completely failed to come clean."

"The Government must not claw back any money from the workers affected. Pensioners should not have to pay the price for government error. Ministers must ensure that any claims already made are withdrawn.

"The Government must confirm whether local government, fire and police pensions have been affected, as they have been in Scotland.

"There must be an immediate investigation to find out if there are problems with any other pension payment contractors and establish whether the Government or private contractors are responsible.

"If there are big reductions to pensions when the changes are introduced in April, ministers should look at ways of staggering the new rates, while ensuring that in the end people are paid no more and no less than the pension they are entitled to."