Opposition slams government for pension systems failure

Opposition parties are calling for an investigation into the potential £15bn state pension shortfall caused by problems with the Inland Revenue’s computer systems.

Work backlogs caused by the switch to the National Insurance Recording System (Nirs2) in 1998 led to the Revenue stopping reminder notices for five years to some 10 million low-paid workers whose national insurance contributions needed top-ups in order to qualify for the basic state pension.

The Conservative Party said the government had failed to listen to warnings about problems with Nirs2.

“This is another savage twist in the pensions crisis. Yet again it is a result of the government’s own mistakes. We’ve been pressing them for years to tackle the problems of the National Insurance Recording System and they have failed to do so,” said David Willetts, Shadow Secretary of State for Work and Pensions. Liberal Democrat MP Steve Webb questioned why it had taken so long for the Revenue to act and called for an urgent investigation.

He said: "This latest Inland Revenue pension blunder smacks of a cover-up. There must be an urgent investigation into how this problem was allowed to go on for so long."

He added: "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."