Revenue officials admitted they will hit 15,000 people who have small occupational pensions with a higher tax bill.

But the tax hit will only be temporary because these people are exempt.

That means the taxman will take the money — for a while — and then return it to the pensioners.

The bizarre decision raises serious questions about Revenue’s handling of what has now become a fiasco.

However, the reality for thousands of elderly people now is confusion and a sense of alienation, according to Pensions Ombudsman Paul Kenny.