Retired civil servants who’ve been left struggling due to extreme delays to their pension funds can now apply for curiosity‑free emergency loans of as much as £10,000, ministers have confirmed.
The transfer comes after 1000’s of former employees reported prolonged waits for cash owed to them following a change within the administration of the Civil Service Pension Scheme.
Throughout a parliamentary listening to, Cupboard Workplace Minister Nick Thomas‑Symonds condemned the state of affairs, telling MPs on the Public Administration and Constitutional Affairs Committee that the delays have been “fully and completely unacceptable”.
The issues started after outsourcing agency Capita took over duty for the scheme in the beginning of December, with round 8,500 folks experiencing points for the reason that handover.
Catherine Little, the civil service chief working officer, outlined the emergency mortgage preparations to MPs.
She defined that almost all loans might be capped at £5,000, whereas the upper £10,000 restrict will apply solely in distinctive instances.
Particular person authorities departments will oversee purposes, and ministers say the assist is meant for pensioners dealing with quick monetary problem.
The results of the delays have been extreme for a lot of. Sandra Jackson, 59, from Wiltshire, who left the civil service in March 2025 because of sick well being, stated she had anticipated her pension to start in November however acquired nothing after Capita took over.
Hundreds affected after Capita takeover triggered fee backlogs
|
GETTYDescribing the expertise as “hell”, she stated she had been compelled to borrow cash from her mom to cowl primary prices, however that assist has now run out.
“This month we’re simply struggling alone,” she stated.
Related accounts have emerged from different former civil servants.
Anthony Worth, 58, from St Helens, who left the jail service on well being grounds in June, stated he’s nonetheless ready for an agreed compensation fee and spent greater than 4 hours on maintain attempting to achieve Capita.
Capita has admitted that the backlog it inherited was far bigger than anticipated
|
GETTY
He has relied on family to cowl lease and payments and described the state of affairs as humiliating, including that “Christmas and New Yr have been cancelled”.
Capita has admitted that the backlog it inherited was far bigger than anticipated.
The corporate stated it found 86,000 excellent instances after taking on the contract, in contrast with the 37,000 it had anticipated.
In a joint assertion with the Cupboard Workplace, Capita apologised for the “fear, frustration and misery” precipitated, significantly for these coping with bereavement or sick well being.
Officers say probably the most pressing instances, these involving bereavement, critical sickness or acute monetary hardship, might be prioritised, with ministers anticipating them to be resolved by the tip of February.
Capita has additionally elevated staffing ranges in an effort to scale back the backlog, recruiting greater than 150 further staff and bringing the overall workforce on the scheme to over 650.
Commerce unions proceed to push for additional motion.
The PCS union, which represents civil servants, is asking for a compensation scheme to cowl curiosity on late funds and extra prices incurred due to the delays.
The union can also be urging ministers to return the pension scheme to public sector management.
|
GETTY
Common secretary Fran Heathcote stated the state of affairs is inflicting “critical monetary and emotional hardship” for individuals who have contributed to their pensions all through their working lives, insisting that pensioners shouldn’t be left ready months for cash they’re legally entitled to.
The union can also be urging ministers to return the pension scheme to public sector management.
Capita secured the seven‑yr, £239million contract to manage the scheme, taking on from MyCSP on the finish of November 2025.
The Public Accounts Committee had already raised issues concerning the transition, warning in October that Capita won’t be absolutely ready to imagine management by December.
Ministers say efforts are persevering with to stabilise pension funds and restore confidence within the system.
