Over 1 million elderly people receive incorrect benefits » Central Government » 24dash.com

One in three pensioners is getting the wrong benefit payments, the Government admitted today.

More than one million elderly people received incorrect pension credit payments last year, figures released by the Department for Work and Pensions revealed.

The incorrect payments made up 36.5% of all pension credit payments last year. In 84% of cases, mistakes were caused by official error rather than by fraud or customer error.

Last year, £200 million was overpaid and £90 million was underpaid.

Liberal Democrat work and pensions spokeswoman Jenny Willott, who obtained the figures, said: "Pension credit is so complex even officials can't understand it. It is no wonder that so many people are put off claiming it.

"It is outrageous that money that should be going to hard-up pensioners is not reaching them."

Pension credit is a benefit for pensioners on very low incomes that gives elderly people the difference between their income and £124.05 a week if they are single or £189.35 if in a couple.

Currently 2.6 million pensioners claim pension credit.

The latest figures showed that between April 2007 and March 2008, a total of £380 million was overpaid in pension credits - £200 million of this was due to official error.

Since pension credits were introduced in 2003, official mistakes have led to £760 million being overpaid and £412 million being underpaid.

Ms Willott added: "The Government must scrap complicated benefits for pensioners and introduce a universal, higher state pension which increases in line with wages. This is the only way to deliver a fair deal for all pensioners."