EX-SERVICEMEN'S organisations last night reacted angrily to a new pensions blunder by the Ministry of Defence.

The MoD admitted that a mistake which led to thousands of disabled soldiers having their pensions taxed had also affected the Royal Navy.

The original mistake emerged earlier this year when the Government said veterans who were invalided out of the Army would be refunded about £30m.

Yesterday, it emerged that Royal Navy invaliding pensions awarded between 1973 and 1999 had also been wrongly taxed.

Colin Northridge MBE, county field officer for the Royal British Legion in North Yorkshire and Cleveland, said: "We are very concerned to hear the MoD has admitted to further tax errors and hope they will now move quickly to identify and refund all those affected."

Mr Northridge, who handles welfare inquiries for about 90 Royal British Legion branches representing 10,000 members, said he would be writing to members to alert them to the problem.

It is thought that the disability pensions of up to one thousand former Royal Navy servicemen who were discharged as a result of illness or injury could be affected. The cost of refunds as a result could run into tens of millions of pounds.

Michael Worrall, divisional secretary of the Darlington branch of Soldiers, Sailors and Airmen's Families Association, said: "It is time the civil servants at the MoD got a grip."

The ministry said further investigations were taking place.

An MoD spokeswoman said that, despite reports to the contrary, RAF invaliding pensions were not affected.

It would be helping servicemen and their families who had lost money to make a claim to recover it.

Anyone concerned they may be affected should call (0207) 8209988 for help.