Minister sorry for pensions error

Some pensioners were underpaid by about £340

Pensions Minister Jeff Rooker has apologised to thousands of pensioners who have missed out on millions of pounds in benefit entitlements.

More than 128,000 pensioners have lost around £340 each because of computer problems at the Department of Social Security.

Opposition parties describe the situation as a shambles and have accused the government of allowing the elderly to be short-changed for years.

Mr Rooker had earlier admitted that the controversial NIRS2 computer system, which broke down in 1998, was still causing problems.

On Saturday he apologised and expressed regret that his review of benefit claims affected by the delays would not be completed by the end of the year as originally promised.

Steve Webb says ministers are not taking the problem seriously enough

Liberal Democrat social security spokesman Steve Webb said the apology was long over due and had been dragged out of ministers who had failed to take the problem seriously.

"Thousands of pensioners have been cheated in their hard-earned retirement," he said.

"This is a problem the government have known about for years. They are simply not taking it seriously enough.

"Pensioners are paid little enough without being short-changed by DSS computers.

"They want security. But this shambles means pensioners are waiting and worrying for months and sometimes years before their pension is sorted out."

We are very angry about what the government has now admitted

Age Concern

Age Concern spokesman Gordon Lishman said: "We are talking about a very large number of people and about a level of poverty which in any case is unacceptable."

In a statement released on Saturday Mr Rooker blamed the Conservatives for not investing in computers when they were in power.

"The vast majority of pensioners are getting the right pension at the right time," he said.

"We are working to sort out the remaining problem."

He has already disclosed that 5,300 pensioners have been overpaid a total of £920,000.

The average underpayment was £340 and the average overpayment £174.

Jeff Rooker has branded his department's computers "rubbish"

In a Commons debate earlier this month, he branded as "rubbish" computers used by the Department of Social Security and blamed lack of investment in the past for this "sorry state".

The latest disclosures came after pensioners learnt they are to benefit from £2.6bn extra in Chancellor Gordon Brown's pre-Budget report.

All pensioners will receive an increase of £5 per week for a single person, and £8 per week for couples from 1 April, and a further increase of £3 per week and £4.80 per week respectively in the following year.

The winter fuel allowance is also being increased to £200 per year.

Earlier in November a demonstration was staged outside parliament calling for a higher state pension.