“Shameful” lack of insight as government doesn’t know how many affected by non-payment of pension

The government has shown a “shameful” lack of insight as it revealed it doesn’t know how many people are affected by a catastrophic failure in the administration of the Civil Service Pension Scheme. 

In a Parliamentary Question, Andrew Snowden MP asked the government how many people had been affected by the problem. The government acknowledged the problem but shockingly doesn’t have information on the number of people affected. 

Prospect believes that thousands of people may be affected by significant delays in the commencement of pension payments. This applies to both monthly payments and lump sums. Many people have been waiting for months, causing significant financial hardship including having to borrow money, struggling to meet mortgage obligations, and having to sign up for Universal Credit. 

Prospect, along with other unions, has called for the government to ensure adequate resources to address the backlog and fix the problem, and for the Cabinet Office to agree to pay compensation automatically to those affected. It has also warned that unless the matter is addressed some government employers will have no choice but to pause voluntary exit schemes, throwing both their workforce planning, and people’s retirement plans, into disarray. 

Steve Thomas, Deputy General Secretary of Prospect, said:  

“This looks like a real scandal and, shamefully, the government doesn’t even know how many people are affected. 

“This completely unacceptable situation has left people at the end of their career of dedicated public service unable to pay their mortgage, with no idea how long the situation will continue. Prospect alone has supported members in so many cases that we believe thousands could be affected.  

“This matter must be addressed immediately, compensation paid automatically, and steps taken to ensure this never happens again.”