Thousands of civil servants are facing financial uncertainty as Capita struggles to process pension payments. This situation has led to widespread hardship and criticism from MPs.
Since taking over the administration of the Civil Service Pension Scheme in December 2025, Capita has been unable to provide lump sums or regular payments. Approximately 86,000 people are affected by this backlog.
As of early Tuesday, the volume of calls to Capita’s service peaked at 25,000 per week. Many civil servants—about 3,000 retire each month—have not received their first pension payment since December 1, 2025.
The government announced interest-free “hardship loans” for the worst-affected individuals. However, no timeline has been shared regarding when the backlog will be resolved.
Criticism is mounting against Capita. Anneliese Midgley stated, “Capita’s management of the Civil Service pension scheme has been an absolute shambles.” Lisa Blundell added, “People are not getting their pension. People are struggling to pay basic bills and get by day-to-day. How is any of that not urgent?”
The Public and Commercial Services Union (PCS) is advocating for accountability from Capita regarding these delays. Fran Heathcote remarked that this situation is a “hammer blow to members’ confidence in the administration of their pensions.”
Moreover, Capita faces scrutiny for a data breach that exposed personal details of 138 civil service pension scheme members. Officials have not confirmed if they will meet their target to clear the pensions backlog by the end of June.
The Civil Service Pensioners’ Alliance (CSPA) represents those affected by these issues and continues to push for improvements in the management of public sector pensions.