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Thousands of retired civil servants face late or missing pensions – here’s why

Related: Martin Lewis issues pension warning
  • Outsourcing firm Capita is facing intense scrutiny over severe delays and backlogs in administering the civil service pension scheme, which serves 1.7 million members.
  • The Cabinet Office has deployed a taskforce of over 140 staff and introduced interest-free emergency loans of up to £20,000 for affected individuals, with all costs to be recovered from Capita.
  • The government has withheld £9.9 million in payments to Capita, which also had its contract for the Royal Mail statutory pension scheme terminated earlier this year for failing to meet key milestones.
  • Thousands of civil servants, retirees, and bereaved families remain impacted by missing payments and unissued quotes, prompting many staff to delay their retirements due to stress and financial anxiety.
  • Capita has apologised for the ongoing service issues and announced it completed its first remediation milestone on 1 September, as it continues work to clear outstanding high-priority cases.
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