Liberal Democrats in Business

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PENSION BLUNDER SMACKS OF INLAND REVENUE COVER UP - WEBB

1.10.15pm BST (GMT +0100) Thu 15th May 2003

The latest Inland Revenue pension blunder smacks of a cover up, Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, said today.

Millions of people will have to pay up to £1,500 in extra contributions if they are to get their full state pension after problems with the Inland Revenue computer system.

Commenting, Steve Webb MP, said:

"This latest Inland Revenue pension blunder smacks of a cover-up. "

"The Inland Revenue must have known for years that it was not sending letters out because of computer failure. Instead of acting, they left millions of people in the dark and did nothing to warn people to keep an eye on their National Insurance contributions.

"Those on low incomes and particularly those who have just retired will be hit hardest because many will be unable to make up the shortfall of cash."

"There must be an urgent investigation into how this problem was allowed to go on for so long."

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