Campaigners are demanding urgent action to help thousands of people who have not received their pension payments due to what they describe as persistent failures by government contractor Capita. MPs have warned that constituents face losing their homes, while others have delayed retirement or taken minimum-wage jobs to make ends meet.
Scope of the Crisis
A total of 6,700 members of the Civil Service pension scheme, administered by Capita, are waiting for pension quotations that set out how much they are entitled to. Additionally, 4,500 bereaved relatives of pension scheme members are waiting for payments. The delays have caused severe financial hardship for many.
Jonathan Safir, deputy general secretary of the Civil Service Pensioners’ Alliance, said: “Civil Service pensioners need more than apologies and revised timetables. They need payments processed, communication improved, and confidence restored in the administration of the scheme. What is needed now is not another set of assurances, but clear leadership and urgent action from both Capita and the Government. Civil Service pensioners and their families deserve to know that fixing these problems is being treated as a matter of priority.”
Government Response
Cabinet Office minister Nick Thomas-Symonds told the House of Commons he had been forced to intervene directly “because of Capita’s persistent failures” and had appointed 140 officials to try to ensure money was paid. The Government is also offering interest-free loans of up to £10,000 to people affected.
Despite these measures, MPs highlighted the severe hardship suffered by constituents. Labour MP Paula Barker said: “I have constituents who have faced unacceptably long delays, including a terminally ill lady who has been left waiting for months, a man in severe financial hardship who was due his first payment in December 2025, but, shockingly, is being forced to wait until 2027, and a lady, whose brother died in service in 2024, who is unable to settle his estate due to the delay.”
Stories of Hardship
Katrina Murray, another Labour MP, said: “My case team keep hearing about people who are about to lose their house.” SNP MP Brendan O’Hara told the House of Commons: “My constituent Jamie Dalgleish served 25 years in the submarine service, followed by 23 years in the Ministry of Defence Police. He retired last year, but is still waiting for his monthly pension to start. Such is his financial hardship that at 65 years of age, Jamie has now taken a civilian job back with the MoD Police, cleaning out the dogs’ kennels for minimum wage.”
Lib Dem MP Zöe Franklin said: “My constituent Anita was widowed suddenly in December 2025, and Capita has failed to calculate her lump sum and pension payments. She is living in desperate hardship – she has exhausted all her credit cards, and there are no friends and family left who can support her.”
Capita's Response and Market Impact
Capita’s shares have fallen 25% in the past month amid suggestions that it could be denied further government contracts. A Capita spokesperson said: “We continue to work at pace to resolve the operational issues in collaboration with the Cabinet Office. Despite the progress made to date, we recognise the service has not been good enough, particularly for members waiting on bereavement, retirement and quotation cases, and we are sorry for the distress and inconvenience experienced by those members. We now have the processes, automation and technology in place to work through the backlog.”
