Cabinet Office update on Civil Service pension scheme delays

The Cabinet Office has provided an update on the serious problems affecting the administration of the Civil Service Pension Scheme following the transfer to Capita.

Thousands of recently retired civil servants are facing delays to the start of their pension payments. The Cabinet Office has confirmed that around 8,500 people are currently affected. In many cases, members have received their lump sum but are still waiting for regular pension payments to begin.

Pensions already in payment are not affected, and the scheme itself remains secure. The issues relate to new retirements and administrative processing.

Following sustained pressure from Prospect and other trade unions, the Cabinet Office has confirmed that it is working with departments and Capita to address the backlog and to put urgent support in place for members experiencing financial hardship.

The Cabinet Office has indicated that, once implemented, members who retired within the last 12 months and are experiencing hardship will be able to seek support from their former department, while those who left more than 12 months ago will be directed to Capita. Prospect is seeking further detail on how these arrangements will work in practice and how quickly support will be provided.

The Cabinet Office has also confirmed that bereavement cases are being prioritised, with Capita committing to restore service levels for death-in-service cases by 12 February.

Prospect has written to members setting out this update and will continue to press the Cabinet Office and Capita for clear timelines, consistent hardship arrangements across departments, and a resolution to the delays. We will be providing further updates once we have more information.