What is causing the delays in civil service pension payments?

The delays are due to a massive backlog of cases, which has now reached 120,000, exacerbated by the transition to Capita as the new administrator of the scheme.

What help is available for civil servants affected by pension payment delays?

The government is making interest-free loans available, ranging from £5,000 to £10,000 in exceptional cases, to provide immediate financial support to those experiencing hardship.

When will Capita resolve the civil service pension backlog?

Capita expects to restore service levels for the most urgent cases by the end of February 2026, with full recovery of the remaining priority cases to follow.

Home / Business and Economy / Pension Chaos: 120,000 Cases Delayed

Pension Chaos: 120,000 Cases Delayed

11 Feb

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Summary

Over 120,000 pension cases are now in backlog.
Retired civil servants face months of waiting for payments.
Emergency loans offered due to severe financial hardship.

The civil service pension scheme in Britain is in crisis, with a backlog of cases exploding to 120,000. This situation has left tens of thousands of people, including retired civil servants, waiting for months to receive their pension payments and lump sums. Some individuals have been left without any retirement income, leading to severe financial distress, rent arrears, and the jeopardizing of future plans.

The government is now exploring the provision of interest-free loans, ranging from £5,000 to £10,000 in exceptional cases, to help alleviate the hardship faced by those experiencing delays. This unfolding scandal has prompted an urgent recovery plan, with senior officials working to stabilize the service and ensure current and former civil servants receive the support they are due.

The problems were exacerbated when Capita took over the administration of the scheme in December 2025, inheriting an 86,000-case backlog from the previous administrator, MyCSP. Capita reports that it has over 500 staff working on these pensions and is increasing resources to improve response times, aiming to restore service levels for urgent cases by the end of February 2026. However, concerns remain about the company's performance and its suitability to manage such a critical public service.