Pensions staff secrecy warning

WHISTLEBLOWERS working on the Government's controversial pension modernisation scheme have been threatened with criminal prosecution.

Staff at call centres who are responsible for persuading retired people to give up their right to receive their pensions in cash have been warned of 'serious consequences' if they break their 'solemn promise' not to speak to outsiders.

A memo reminds staff that they are bound by the Official Secrets Act and that any breach 'will not be tolerated'.

It was issued on September 8 after Financial Mail reported mounting concern at the bullying and harassment of pensioners by staff working on the modernisation programme.

In some cases, past and present call centre staff broke their silence to tell of pensioners in tears as a result of heavyhanded tactics.

Vertex, the call centre operator owned by United Utilities, which is under contract to the Department for Work and Pensions, denied the memo was related to media investigations. A spokesman said: 'This is routine. We take the opportunity from time to time to remind staff of the confidentiality agreement that they signed on joining.'

This agreement applies to all 1,500 Vertex staff employed on the DWP pensions contract and covers information obtained about individual pensioners and about what goes on inside the call centres.

A catch-all provision requires staff to pledge not to divulge 'any other knowledge I acquire about the authority [the DWP] in the course of my work'.

Pensions Minister Chris Pond apologised earlier this year for any instances in which staff had failed to be 'polite and courteous' to the retired people with whom they are dealing.

This followed widespread reports of pensioners being bullied and misled about their right to continue to be paid in cash after the traditional pension book is phased out next year. Thomas Rund, 71, a former national serviceman with the Royal Engineers 50 years ago, is entitled to a small pension from the Ministry of Defence's Veterans Agency. But Thomas, who lives near Pontefract, West Yorkshire, wants to carry on collecting his pension in cash.

However, the Veterans Agency has told him that the pledge applies only to 'emergency situations' and is not 'a long-term method of payment'.

A defiant Thomas said: 'I'm insisting on all future payments being made either by payment book or Giro cheque.'

Pond confirmed in Parliament on May 11 that those who wished could be paid by Giro cheques that could be cashed at a Post Office.

But since then, this pledge has been undermined by the actions of staff working for the DWP.

Neil Duncan-Jordan of the National Pensioners' Convention said: 'It's hardly surprising that call centre staff have turned to the media if their employer and the Government will not listen.'

He said the convention would be meeting Pond on November 16 to raise concerns. These include widespread allegations of bullying and misrepresentation by staff working on the modernisation programme.