Capita Delays Push 18,425 UK Retirees Into Lump Sums as Government Withholds £9.9 Million
Updated
Updated · HeraldScotland · Jul 18
Capita Delays Push 18,425 UK Retirees Into Lump Sums as Government Withholds £9.9 Million
1 articles · Updated · HeraldScotland · Jul 18
Summary
18,425 retired civil servants were paid lump sums instead of monthly pensions after months of disruption in the UK civil service scheme, with another 5,700 still waiting for pension quotations.
December’s transfer of administration to Capita triggered the backlog; the company has repeatedly missed recovery deadlines, including an end-June target, and says normal service is unlikely before September.
£9.9 million in contract payments has been withheld by the Cabinet Office, which called Capita’s performance unacceptable and said it is shaping a plan to bring the £189 billion scheme back in-house.
£40 million is the earnings hit Capita expects in 2026 from the pensions crisis, which had been flagged before the handover by warnings that the contractor might not be ready and planned leaner staffing.
1.7 million public servants are covered by the scheme, and critics say the delays have left retirees in financial distress, with some reportedly taking post-retirement work while waiting for regular payments.