Question to the Ministry of Defence:

To ask His Majesty's Government what assessment they have made of the ability of Equiniti and Sopra Steria to pay Ministry of Defence pensions to service personnel.

Equinity is a sub-contractor of Sopra Steria and pays approximately 477,000 Armed Forces Pensions annually on behalf of the Ministry of Defence. 335 individuals were overpaid a total of £5.1 million, owing to National Insurance (NI) abatement calculation errors by the paying agent Equinity. This represents a small proportion of payments and are not reflective of the overall payment service provided.

The Ministry of Defence (MOD) exercises oversight through established governance, contract management, assurance and audit arrangements. These include contractual performance monitoring, regular service reporting, quality assurance activity undertaken by the service providers, independent assurance reviews commissioned by the Authority, and external scrutiny through established audit processes. The Armed Forces Pension Scheme is also subject to review by the Government Internal Audit Agency and examination by the National Audit Office as part of wider governance, risk and assurance arrangements. Following identification of the National Insurance abatement issue, additional oversight arrangements were introduced to monitor corrective activity, review root causes, validate proposed corrections, track progress against remediation plans and strengthen preventative and detective controls designed to reduce the risk of similar issues arising in future.

The MOD first identified that there was a potential issue relating to the application of National Insurance abatements in November 2024. Further extensive work was subsequently undertaken to establish the full extent of the issue, determine the affected population and validate individual cases before corrective action could commence. Corrective activity commenced following identification of the affected population, completion of calculation and assurance activity, and approval of the proposed corrective approach. Revision of affected awards and notification of individuals commenced in January 2026.

We recognise that this situation may cause uncertainty for those affected and continue to provide comprehensive one-to-one welfare support from Veterans Services Welfare managers. Anyone who believes repayment may not be possible, or could cause financial hardship should contact the Ministry of Defence using the details provide in their letters.

Individuals can make a defence against recovery based on an assessment of their personal circumstances. Guidance on valid reasons for disputing repayment can be found in Managing Public Money - Annex 4.11. (https://www.gov.uk/government/publications/managing-public-money