War veterans who were wrongly deprived of millions of pounds in pension payments have still not been reimbursed.

The Ministry of Defence (MoD) promised in January to put right its "terrible mistake".

But six months on, some pensioners have yet to see a penny of the cash they are owed.

Army personnel who retired through injury in the past 50 years, and their widows, are entitled to tax-free pensions.

'Oversight'

But an error by the MoD has led to tax being wrongly deducted from payments to more than 1,000 former soldiers.

The mistake was acknowledged last year following a campaign by former Royal Artillery Major John Perry, who refused to accept everything was in order.

In January Defence Minister Lewis Moonie told the House of Commons millions would need to be repaid.

It's our own money in the bank of the MoD Major Richard Perkins

This week pensioners were raising the issue again.

Major Richard Perkins, who has been retired from the Army for 42 years, is among those still waiting for a repayment.

"That's 42 years of rebates due to me," he told Today on Wednesday.

He said the MoD and Inland Revenue were "fighting like ferrets in a sack" over who should pay and meanwhile they were "destroying the remaining years" of people like him.

"These are not claims for an award - it's our own money in the bank of the MoD and Inland Revenue."

1952 law

The MoD said it had already repaid deducted tax to more than 1,000 former Army and Royal Navy personnel and was working "as quickly as possible" to sort out the other claims.

A spokesman said: "Any stalling is regrettable. But pensions are very complicated and Major Perkins' is particularly complicated."

Under the 1952 Income and Corporation Taxes Act pensions were made tax free if they were granted on account of medical unfitness "attributable" to naval, military or air force service.

Civil servants managing Army pensions failed to take this into account and continued to deduct tax from payments to injured veterans from most of the major conflicts since World War II.

The files of those affected have been passed onto the Inland Revenue to be reimbursed and some have already had the money paid back.

It has been reported the total cost could be about �50m, a figure described by the MoD as "pure speculation".