By Julian Goldsmith, 5 November 1998 17:34
NEWS The UK government has admitted that technical problems with the National Insurance database (NIRS2) have caused state pensions to be under-paid. In a Commons written answer, the Secretary for the Department of Social Security, Alistair Darling, explained the problems had been caused by the transfer of claimants' files to NIRS2 last June, but that no data has actually been lost or destroyed. Darling did admit however, that there are problems with functions critical to the benefits system. "These include the calculation of benefit entitlement in some cases - these are currently under investigation by [the contractor] Andersen Consulting," he said. The system has been unable to accept information on National Insurance contributions made over the 97/98 fiscal period. A department spokeswoman admitted: "We are still trying to load the information on to the database, but so far we have not been successful." The problems have resulted in 97 per cent of pensioners only receiving the payment they were entitled to up to mid-1997. The remaining 3 per cent could stand to lose up to £100 per week as the benefits agency has no record of their contributions for the last year. The minister finished off by saying that it was unlikely the problem will be solved until next April, and it could take even longer to clear the backlog. Andersen Consulting declined to comment.
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