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£126m overpaid in pensions blunder

Dec 16 2008

Around £126 million has been overpaid to thousands of retired public sector workers in a huge pensions blunder, the Government said.

An estimated 95,000 people are affected and face having their payments cut or increased below inflation from April, according to Cabinet minister Liam Byrne.

However, it would not be "cost-effective" to try to claw back the money from individuals, he said in a statement to MPs.

The overpayments have been taking place since 1978, but Mr Byrne insisted there was "no single cause" for the errors.

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