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An estimated 95,000 people have been overpaid a total of £126m over 30 years as a result of errors in public sector pensions, the Cabinet Office has said.
Retired civil servants, NHS workers, teachers, judicial and armed services personnel were given too much money.
The government said the money need not be repaid, as this would not be cost-effective, but many face pension cuts.
But the SNP says retired council, fire and police workers in Scotland will not see their pensions reduced.
The party's work and pensions spokesman John Mason said overpayments will not be removed next year in the areas where the Scottish government has powers to act.
'Bureaucratic bungle'
They said the Treasury had refused consent to amend pension regulations for 6,000 retired teachers and NHS staff in Scotland. They, and retired armed services, judicial staff and civil servants in Scotland will see their pensions cut.
Mr Mason said the Treasury "must reconsider" adding: "It's time for common sense to prevail. No pensioner should have to suffer for this bureaucratic bungle."
Letters are being sent are being pensioners across the UK explaining how they will be affected.
The overpayments, averaging about £1,300 per person in total, began in 1978 and were caused by an "incorrect indexation" of pensions.
If evenly spread over the 30 years it would equal overpayments of about £3.70 a month each.
In a statement to MPs, Cabinet Office minister Liam Byrne said an estimated 5% of public service pensioners had been affected, but there had been "no single cause" for the errors.
He promised that the National Audit Office would carry out an investigation.
Banking bailout
Asked about the situation at his monthly press conference, Conservative leader David Cameron said: "You have to ask why this was allowed to go on for such a long time.
"This government has been in power for a lot of years. They have to get a better grip.
The issue was raised in the House of Commons on Monday by Liberal Democrat Treasury spokesman Vince Cable, who was informed about the problem 10 days ago by a BBC journalist.
He said: "This is small beer by comparison with the banking bailout but it's a lot of money to a lot of people."
On Monday Chancellor Alistair Darling said the money would not have to be repaid, but he added: "It will be necessary to adjust what's paid for the future. It does need to be put right from next year.
Mervyn Kohler, of Help the Aged, said the government's response "seems fair and responsible".
"We're pleased pensioners are not being asked to pay for a mistake that wasn't theirs," he said, urging those pensioners who find themselves worse off to check if they are entitled to benefits.
This government has been in power for a lot of years. They have to get a better grip 
David Cameron
Conservative leader
Source >>> BBC NEWS | Politics | 95,000 pensioners 'were overpaid'
Sigh, I can't say I'm surprised after reading this article, the Government are always bungling. They did the same with Working and Children s Tax Credits..
bfxx
Retired civil servants, NHS workers, teachers, judicial and armed services personnel were given too much money.
The government said the money need not be repaid, as this would not be cost-effective, but many face pension cuts.
But the SNP says retired council, fire and police workers in Scotland will not see their pensions reduced.
The party's work and pensions spokesman John Mason said overpayments will not be removed next year in the areas where the Scottish government has powers to act.
'Bureaucratic bungle'
They said the Treasury had refused consent to amend pension regulations for 6,000 retired teachers and NHS staff in Scotland. They, and retired armed services, judicial staff and civil servants in Scotland will see their pensions cut.
Mr Mason said the Treasury "must reconsider" adding: "It's time for common sense to prevail. No pensioner should have to suffer for this bureaucratic bungle."
Letters are being sent are being pensioners across the UK explaining how they will be affected.
The overpayments, averaging about £1,300 per person in total, began in 1978 and were caused by an "incorrect indexation" of pensions.
If evenly spread over the 30 years it would equal overpayments of about £3.70 a month each.
In a statement to MPs, Cabinet Office minister Liam Byrne said an estimated 5% of public service pensioners had been affected, but there had been "no single cause" for the errors.
He promised that the National Audit Office would carry out an investigation.
Banking bailout
Asked about the situation at his monthly press conference, Conservative leader David Cameron said: "You have to ask why this was allowed to go on for such a long time.
"This government has been in power for a lot of years. They have to get a better grip.
The issue was raised in the House of Commons on Monday by Liberal Democrat Treasury spokesman Vince Cable, who was informed about the problem 10 days ago by a BBC journalist.
He said: "This is small beer by comparison with the banking bailout but it's a lot of money to a lot of people."
On Monday Chancellor Alistair Darling said the money would not have to be repaid, but he added: "It will be necessary to adjust what's paid for the future. It does need to be put right from next year.
Mervyn Kohler, of Help the Aged, said the government's response "seems fair and responsible".
"We're pleased pensioners are not being asked to pay for a mistake that wasn't theirs," he said, urging those pensioners who find themselves worse off to check if they are entitled to benefits.
This government has been in power for a lot of years. They have to get a better grip David Cameron
Conservative leader
Source >>> BBC NEWS | Politics | 95,000 pensioners 'were overpaid'
Sigh, I can't say I'm surprised after reading this article, the Government are always bungling. They did the same with Working and Children s Tax Credits..
bfxx
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