MP urges government to take action over pension clawback as result of contracting out errors

Jonathan Stapleton
clock • 1 min read

The prospect of public sector workers losing some of their pension because of mistakes made by the government is "disgraceful", the Liberal Democrat work and pensions spokesman says.

Stephen Lloyd, the political party's MP for Eastbourne, said workers in the NHS, armed forces, teachers and thousands of local government employees, could have some of their pension "clawed back".

He said the problem has arisen because many workers who were contracted-out have now been found to have received an overpayment - something he says was "no fault of their own".

Lloyd said government departments with affected workers must now chose whether or not to "clawback" the overpayments - and has written to the secretaries of state for health; education; and housing, communities and local government to urge them not to claw back the pension over payments.

He said: "I think clawing back the pension overpayments would be this government profiting from its past failures."

More on Law and Regulation

Omission may leave trustees unable to select CDC as guided retirement option

Omission may leave trustees unable to select CDC as guided retirement option

Retirees could be defaulted into annuity purchase default over CDC at retirement

Jonathan Stapleton
clock 24 October 2025 • 1 min read
Torsten Bell: Leave aside cynicism and get on with the job of making CDC work

Torsten Bell: Leave aside cynicism and get on with the job of making CDC work

Minister says CDC has important role in task of finishing pensions settlement

Jonathan Stapleton
clock 23 October 2025 • 4 min read
Government green-lights CDC scheme expansion

Government green-lights CDC scheme expansion

UMES regs to be laid in parliament this week and DWP to consult on retirement CDC policy

Jonathan Stapleton
clock 22 October 2025 • 5 min read
Trustpilot