Despite making progress, the government must do more to deal with past problems in the state earnings related pension, parliament's spending watchdog has said.

In a report released today, the National Audit Office praised much of the action taken by the Department for Work and Pensions to provide accurate information about a problem caused by the publication of incorrect information.

But it added that more could have been done to explain to the victims what compensation they were entitled to.

Forum Response: Counsel and Care

Martin Green, chief executive of Counsel and Care, told ePolitix.com: "In any situation where there had been a major problem with pensions, one of the government's first priorities should be to explain the problem and offer some form of redress."

Forum Response: Age Concern

Gordon Lishman, director general of Age Concern, told ePolitix.com: "Age Concern was the first organisation to identify this major failure of administration in 1998 and we were delighted for those pensioners and those close to retirement age who would no longer be affected by the rules because of the changes announced in 2000.

"We are pleased to see the DWP has in general taken the recommended action needed to inform the public of the changes, and we hope that this will be monitored on a continuous basis.

"Information is a central plank of the government's pensions Green Paper, yet we still do not have a system where people will be automatically told if changes are made to benefits rules.

"Where changes are made, people should be told on an individual basis to ensure that this kind of blunder never happens again.

"The importance of people having clear and up-to-date information about their pension position has been highlighted recently by the hundreds of women who feel they have been short-changed by paying the married woman's stamp.

"Many feel they should have had better information and advice at the time to help them make important decisions about their future income.

"It is vital the government ensures people have more accurate information about benefits and pension options to help them make appropriate plans for a decent income in retirement."

Forum Response: Help the Aged

Richard Wilson, incomes policy officer at Help the Aged, told ePolitix.com: "The DSS (now the DWP) has had an appalling record when it comes to giving accurate and clear information to the public about their State Pensions.

"Whilst they are now working to improve the way they communicate, the recent examples of confusing DWP letters highlighted by the NAO show there is still a lot of work to do. The government must ensure that everything they send to the public is independently checked for accuracy and clarity, to ensure there are no further blunders."