Army pensioners told to repay thousands overpaid by mistake

By the Editorial Team · Monday, July 27, 2026

Hundreds of UK military veterans have been told to repay tens of thousands of pounds due to errors that caused inflation increases on their final-salary pensions to be applied twice, resulting in overpayments. The Ministry of Defence is seeking repayment despite veterans not being at fault, prompting calls from charities for the government to write off the £5.1 million to avoid financial strain on retirees.

Hundreds of military veterans in the United Kingdom have been instructed to repay tens of thousands of pounds following errors in the calculation of their pensions, leading to overpayments. The Ministry of Defence (MoD) acknowledged that the mistakes affected the Armed Forces’ two final-salary pension schemes, which provide lifetime income for approximately 432,000 retired service members.

The issue centers on inflation adjustments to pensions. Normally, veterans’ final-salary pensions increase annually in line with inflation. However, in some instances, these inflationary rises appear to have been applied twice in a given year, resulting in overpayment. Despite the errors not being the veterans' fault, public sector rules require that overpaid funds be recovered.

The MoD identified the overpayments in November 2024, but affected veterans were only notified earlier this year. Among those impacted is James Uncles, 71, a retired Royal Navy warrant officer who served as an aircraft engineer. He reported receiving a letter in February demanding repayment of more than £40,000, accompanied by an immediate pension reduction exceeding £1,000 monthly—amounting to nearly a 25 percent cut. Additionally, £750 is set to be deducted monthly over the next five years to recoup the overpayments dating back to January 2021. Another affected individual, Michael Evans, 68, a retired Navy captain, was given just two weeks’ notice that his pension would be reduced by £414 monthly and informed he must repay approximately £16,000 over 18 months.

The Forces Pension Society, a charity providing advice to veterans, confirmed there are currently 398 confirmed cases linked to these errors but indicated awareness of about 1,000 additional instances involving other types of overpayments. Responsibility for administering the pension schemes lies with Defence Business Services, a department within the MoD. Veterans UK handles entitlement assessments and record keeping, while payments are processed by finance firm Equiniti.

Major General Neil Marshall of the Forces Pension Society expressed concern that veterans are not being provided with clear calculations regarding how overpayments and repayments are determined, leaving them unable to verify the accuracy of corrections. Representatives from Equiniti have stated they are working to provide affected veterans with accurate information and appropriate support throughout the repayment process. Campaigners are urging the Treasury to consider writing off the £5.1 million total amount identified as overpaid to prevent undue hardship on veterans.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.