Thousands of civil servants are facing financial uncertainty as Capita struggles to process pension payments. The company manages the pensions of 1.7 million public sector workers. Since taking over the administration of the Civil Service Pension Scheme in December 2025, Capita has failed to provide lump sums or regular payments to many individuals.
Key statistics:
- Approximately 86,000 people across the country are affected by the backlog of pension payments.
- The volume of calls to Capita’s service reached a peak of 25,000 per week.
- About 3,000 civil servants retire every month, with many not receiving their first pension payment since December 1, 2025.
The situation has drawn criticism from various MPs. 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?” These statements reflect the growing frustration among affected individuals.
In response to this crisis, the government announced interest-free “hardship loans” for those most impacted. Yet, Capita continues to face scrutiny for its administrative delays. The Public and Commercial Services Union (PCS) is pushing for accountability regarding these pension delays.
Additionally, Capita has been criticized for a data breach that exposed the personal details of 138 civil service pension scheme members. Fran Heathcote remarked, “This is yet another hammer blow to members’ confidence in the administration of their pensions.” This incident adds another layer of concern for those relying on public sector pensions.
Officials have not confirmed a specific timeline for resolving the backlog. It is uncertain if Capita will meet its target to clear the pensions backlog by the end of June. As this situation unfolds, many civil servants remain in a precarious financial position.
