Pension scheme could cost 1.5bn

A GOVERNMENT scheme to extend the old age pension to a small group of people may cost the Exchequer 1.5 billion.

The scheme, introduced in 2000, allowed people who made sufficient pay-related insurance contributions before 1953 but were otherwise not entitled to the pension to receive 78.50 per week, 50% of the maximum rate.

But an underestimation of how many would qualify has meant that the scheme cost 113.1 million last year, some 13 times more than the estimate of 8.9m per annum.