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Civil service pension delays: who’s affected and what to do
Civil service pension payments are being delayed following Capita’s takeover of the scheme
With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.
Thousands of former public sector workers are facing delays to their first pension payments after problems with the company now running the Civil Service Pension Scheme (CSPS).
Since outsourcing firm Capita took over administration of the scheme in December, new lump sums and pension payments have been subject to significant delays, with some members reporting financial hardship.
The government has confirmed that members whose payments are overdue can apply for an interest-free emergency loan of up to £10,000.
Here, Which? explains what has happened, why delays have occurred, and how to apply for support if you've been affected.
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Why have pension payments been delayed?
In 2023, the Cabinet Office gave Capita a £239m, seven-year contract to run the Civil Service Pension Scheme (CSPS). Taking over from a firm called MyCSP, the scheme manages the pensions of 1.7 million public sector workers in the UK.
Capita has said it expected to inherit around 37,000 outstanding cases when it took over the contract. However, in a joint statement published on 28 January, the Cabinet Office and Capita confirmed that the actual backlog stood at 86,000 cases at the point of transfer, many of which were already overdue. Capita has since told MPs that the backlog has risen to 120,000.
As part of the transition, Capita also launched a new online member portal. Some members have reported problems, including difficulty logging in, broken links and incomplete pension information.
- Find out more: what is a public sector pension?
How many people have been affected?
The backlog includes around 8,500 retired staff who are waiting for their full pension payments. A further 6,300 cases involve members who have died, and families are waiting for lump sums or survivor pensions. Around 1,500 of these cases have arisen since December.
There are also 3,400 civil servants planning to leave under voluntary exit schemes who require paperwork and payments to be completed by the end of next month. Capita has said it can't guarantee that all of these cases will be finalised by that deadline.
The government says pensions that were already in payment before the transfer to Capita shouldn't be affected by the delays.
'I don’t know what income I’ll have or when I'll get it'
Which? has spoken to members affected by the delays, some of whom say they have been waiting months for payments.
One Which? member, who retired from the civil service in September, said she had been warned of a four-month delay before submitting her paperwork. She received a payment in January, four months after retiring, but said it was unclear whether this was her first monthly pension payment or a lump sum, as she had received no communication from Capita or her former employer.
The delay didn't affect her main source of retirement income, as she had worked in the civil service for only a short period. ‘I would be a lot more upset about it if it was my main pension,’ she said.
Another Which? member, who is due to retire in April, told us he's concerned that his pension payments could be delayed. He said he has received updates from his employer and understands that urgent cases are being prioritised.
However, he doesn't know when to expect his pension quote or first payment and has been unable to access the online portal.
‘You can’t plan,’ he said. ‘At the moment, I don’t know what income I’ll have or when I’m going to get it. I would have expected to book a holiday to celebrate retirement, but I don’t want to spend my savings if I don’t know how long they’re going to have to last.’
He added that the situation has affected his confidence in the administrator. ‘When the quote comes in, I’m really going to have to crawl over it. It feels like the onus is on me to look at my records to make sure it’s OK.’
What does Capita say?
Capita has apologised for the disruption and acknowledged that some members had experienced financial hardship as a result of delays. In a statement to Which?, it said: 'Capita and the Cabinet Office are deeply sorry for the worry, frustration and distress this is causing. Both take this responsibility very seriously and are urgently working together to put this right.'
The statement confirmed that bereavement cases, ill-health retirements and hardship situations are being prioritised. It also said that a surge team of more than 150 additional staff has been deployed to help clear correspondence backlogs, bringing the total workforce to more than 650.
Capita says it expects to restore service levels for the most urgent cases by the end of February, with services improving 'week by week'.
It added: 'Nobody is waiting more than an hour to have their call answered. Calls regarding bereavement are being answered within a minute.'
Capita told the Public Accounts Committee that it hopes to return to normal levels of customer service by the end of March, with recurring payments paid as normal by the end of April.
How to get an emergency loan
The Cabinet Office has confirmed that members whose pension payments are overdue can apply for an interest-free loan while their case is being resolved.
Most eligible members will be able to borrow up to £5,000, rising to £10,000 in exceptional cases. The loan is expected to be repaid within 28 days of pension payments being made, although payment plans will be available if needed. You will be eligible if:
- you retired on or after 1 January 2025 and are still waiting for your first pension payment
- you have already been paid your lump sum but are now overdue your monthly payments
- you've taken partial retirement and are still working.
If you retired more than 12 months ago, or you're waiting for a payment following the death of a family member, you won't be eligible for the loan.
To apply, contact your former department’s HR team. The government says departments are reaching out to affected members, but you should get in touch directly if you believe you're eligible and have not been contacted.
Once the loan is approved, the government says payments should be made within a few days, although in some cases it may take up to 28 days.
If you don't meet the criteria but are experiencing financial hardship, the joint statement says you should raise your concerns directly with Capita.
Capita advises members to use the ‘Contact Us’ form on its website or via the pension portal for non-urgent queries. Members who can't access the internet can call the helpline on 0300 123 6666, but should expect delays.
How to make a complaint
If you're unhappy with the service you've received, you can make a formal complaint.
Start by raising your complaint with Capita. You can do this using the contact form on the Civil Service Pensions website or by writing to Capita directly.
If you're not satisfied with the response, you can ask for your case to be reviewed under the scheme’s formal dispute resolution process. This is the next stage of the scheme’s internal complaints procedure.
If your complaint is still not resolved after completing the scheme’s dispute process, you can take your case to the pensions ombudsman. The ombudsman can investigate complaints and disputes about pension schemes and has the legal power to require corrective action or award compensation where appropriate. Its determinations are legally binding.
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