Thousands of civil servants facing delays with their pension payments are now being offered emergency loans from the government as the issue reaches crisis point. Nearly 90,000 cases are backed up, leaving hundreds of retirees without an income for months.
The situation has forced many to turn to family members for financial support, with some even having to rely on universal credit due to the lack of income. One woman, who wished to remain anonymous, reported using up her savings within four months and is now taking antidepressants due to stress.
Another retiree, who submitted a claim in January 2025 but hasn't received any payments yet, expressed desperation, stating that she can no longer afford heating and has had to ask her children to buy her food. Her pension entitlement was due to start last October, but the delay has left her facing an uncertain financial future.
The problem lies with the Civil Service Pension Scheme's administration by outsourcing company Equiniti (now Capita) more than a decade ago. The contract transition period was only two years long, yet the system is now struggling with a backlog of 86,000 cases.
Many members have reported difficulties logging in to their accounts and receiving unanswered emails or long waits on phone lines. Some even received shock tax bills due to incorrect tax codes recorded by Capita.
In response to the crisis, interest-free "hardship loans" worth up to £10,000 will be made available to thousands of affected individuals. Additionally, some may also qualify for compensation.
Cabinet Office Minister Nick Thomas-Symonds described the delays as "completely and utterly unacceptable." However, he acknowledged that the government had accepted that many retired civil servants would not receive their first pension payments since December 1st last year.
The issue has now reached a point where it is being recognized by lawmakers. In Parliament's Public Accounts Committee report from last October, concerns were raised about Capita's readiness to take over the scheme – and suggestions were made to bring administration in-house.
As thousands of retirees struggle with the financial implications of these delays, it remains to be seen how effectively the government will address this crisis and support those most affected.
The situation has forced many to turn to family members for financial support, with some even having to rely on universal credit due to the lack of income. One woman, who wished to remain anonymous, reported using up her savings within four months and is now taking antidepressants due to stress.
Another retiree, who submitted a claim in January 2025 but hasn't received any payments yet, expressed desperation, stating that she can no longer afford heating and has had to ask her children to buy her food. Her pension entitlement was due to start last October, but the delay has left her facing an uncertain financial future.
The problem lies with the Civil Service Pension Scheme's administration by outsourcing company Equiniti (now Capita) more than a decade ago. The contract transition period was only two years long, yet the system is now struggling with a backlog of 86,000 cases.
Many members have reported difficulties logging in to their accounts and receiving unanswered emails or long waits on phone lines. Some even received shock tax bills due to incorrect tax codes recorded by Capita.
In response to the crisis, interest-free "hardship loans" worth up to £10,000 will be made available to thousands of affected individuals. Additionally, some may also qualify for compensation.
Cabinet Office Minister Nick Thomas-Symonds described the delays as "completely and utterly unacceptable." However, he acknowledged that the government had accepted that many retired civil servants would not receive their first pension payments since December 1st last year.
The issue has now reached a point where it is being recognized by lawmakers. In Parliament's Public Accounts Committee report from last October, concerns were raised about Capita's readiness to take over the scheme – and suggestions were made to bring administration in-house.
As thousands of retirees struggle with the financial implications of these delays, it remains to be seen how effectively the government will address this crisis and support those most affected.
I mean, 90k cases backed up? That's just mental. These civil servants worked hard for decades and now they're being left high and dry because of some outsourcing mess. It's like the system was set up to fail from day one.
. But hey, at least the government is trying to step in with some emergency loans... interest-free, £10k or less, so that's something. I just hope they get this sorted out ASAP and don't leave anyone high and dry 
The gov is finally offerin loans but thats not gonna make up 4 the stress ppl r goin thru. We need 2 see some real change ASAP 
I'm literally shaking my head over this one... 90k+ civil servants being left without a steady income due to some major administrative fail on Equiniti's part is just heartbreaking. It's not like these people are expecting gold platters, they're counting on their pensions to live comfortably in retirement. The fact that some are having to rely on family members for financial support or even universal credit is just devastating 
. It's just common sense to have a stable system in place for something as important as pension payments. I hope the government steps up their game ASAP before more people get hurt financially 
We need some serious government intervention, stat! 
Like, bring in-house admin and get this sorted ASAP. The gov needs to show they care about the people who served our country 
. This is like a crisis mode, for real! 
its not like they asked for this kinda situation to happen
I cant even believe what's happening to all these civil servants 
Like, four months is way too long to not get your pension 
And what about the ones who can't afford heating or food?! 
They should've taken over the scheme inhouse like Parliament suggested 
Now they're saying interest-free loans will be available, but how many people will qualify for that? 
! They need to take responsibility for what happened with Equiniti's administration and fix it once and for all 
. I'm glad they're offering interest-free loans, but what about those who aren't eligible or can't get them? 
. The contract transition period was only two years long, so why didn't the government see it coming? 
It's all so frustrating and I just hope they can get this sorted out soon 
.
This is getting out of hand... think about all those retired civil servants who are struggling to make ends meet because of a company's incompetence! I mean, who thought outsourcing the admin of a pension scheme was a good idea?