Thousands of civil servants are facing financial uncertainty as Capita struggles to process pension payments, leading to widespread hardship and criticism from MPs. The situation has escalated since Capita took over the administration of the Civil Service Pension Scheme in December 2025.
As of early Tuesday, approximately 86,000 people across the country have not received their pension payments. This backlog has resulted in a peak volume of calls to Capita’s service reaching 25,000 per week.
Approximately 3,000 civil servants retire each month. Many of these retirees have not received their first pension payment since December 1, 2025. This delay has left them struggling to meet basic financial obligations.
The government announced interest-free “hardship loans” for those most affected by the delays. However, it remains uncertain how effective these loans will be in alleviating the immediate financial pressures faced by retirees.
Criticism has mounted against Capita, with Anneliese Midgley stating that their management of the Civil Service pension scheme has been an “absolute shambles.” Lisa Blundell echoed this sentiment, highlighting that people are struggling to pay basic bills.
The Public and Commercial Services Union (PCS) is advocating for accountability from Capita regarding the ongoing delays. Meanwhile, Capita has stated they are working with the Cabinet Office to reduce the backlog.
Further complicating matters, Capita recently faced criticism for a data breach that exposed personal details of 138 civil service pension scheme members. This incident has further eroded trust among retirees.
No timeline has been shared for when Capita expects to resolve the backlog completely. Officials have not confirmed if they will meet their target to clear it by the end of June.
