“This fiasco is extremely distressing for those who have worked and paid into their pension all their working lives.”
From the Public and Commercial Services Union (PCS)
Thousands of retired civil servants are struggling financially due to unpaid pensions and lump sums.
PCS has been contacted by distressed current and former members since Capita took over administration of the Civil Service Pension Scheme on 1 December, reporting significant delays to lump-sum payments and first pension instalments – often the sole source of income for newly retired staff.
The union has heard from people who:
- cannot pay mortgages, rent or household bills
- have incurred bank charges and late-payment fees
- are being forced to borrow money or rely on family support
- are experiencing severe stress and anxiety in retirement
- are bereaved spouses waiting months for survivor pensions.
PCS has demanded that Capita be directed to prioritise hardship cases, including unpaid retirees, people retiring imminently, ill-health retirement cases and bereavement cases.
We are also calling for a compensation scheme to cover:
- interest on overdue pension payments
- additional financial costs caused by delays, such as mortgage or loan penalties
- the distress and inconvenience suffered by pensioners.
PCS general secretary Fran Heathcote said: “This fiasco is extremely distressing for those who have worked and paid into their pension all their working lives. PCS demands redress for the serious financial peril that many have been put in. Given the failures of the last contractor and the current situation with Capita, we have serious doubts about the private sector’s ability to administer the scheme.
“We believe that this work should be run by the civil service, under ministerial control, so that it can be properly resourced and pensions paid on time. And we call on the government to make good on its promise of ‘the biggest wave of insourcing of public services in a generation’.”
Read more about our campaigning on pensions.
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- This was originally published on the PCS website on 23 January 2026.
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