Capita’s Pensions Chaos: The clock is ticking

Since the decision was taken to hand the administration of the Civil Service Pensions Scheme - complete with its 1.7 million members - to the outsourcing giant Capita, it has been one disaster after another.

In the first seven weeks, the already unacceptable backlog of 86,000 cases – inherited from the earlier failed privatisation – rocketed by 40% to 120,000 cases.

Thousands of retiring and partially-retiring members of staff didn’t get their pension and were plunged into financial crisis. Many more staff who were waiting for compensation scheme quotes were also left in limbo.

A ‘recovery team’ was set up by the Cabinet Office and around 150 civil servants from HMRC’s ‘surge’ team were parachuted in to try to bail out the failing private sector company. Despite all this additional resource, Capita missed deadline after deadline: assurances that bereavement cases would be cleared by 12 February and ill-health retirement cases cleared by 27 February fell by the wayside; promises that the pensions modeller would be delivered by March spectacularly crashed and burned; and the minister’s demand that they cleared the huge backlog by the end of April fell on deaf ears.

In April, the Paymaster General and Minister for the Cabinet Office gave Capita until 30 June 2026 to return the Civil Service Pension Scheme to normal contractual levels.

18 days and counting

There are now 18 days to go. The time for Capita’s ducking and diving is over; and between now and 30 June, PCS will be constantly reminding the company - and the Cabinet Office - that the countdown clock is ticking.

Our campaign has already had great parliamentary support, and a ministerial meeting is now on the cards. Keep a lookout for our countdown and for news about how members can help keep the necessary pressure on. 

Fran Heathcote, PCS general secretary said: “For months, pensioners have been told that by 30 June this backlog would be resolved and that people would finally receive the pensions they are owed. That date is now only a matter of days away, and the countdown is firmly on.

"Our members and the pensioners they serve have borne the brunt of a crisis they did not create. Delays, uncertainty, and repeated broken promises have caused unacceptable stress for people who depend on these payments to live.

"This debacle is also a stark reminder of the risks of outsourcing essential public services. When contracts are driven by cost-cutting rather than delivering for the public, it is pensioners and frontline workers who pay the price.

"There can be no excuses and no shifting of responsibility. Capita made a public commitment, and it must now deliver on it or be stripped of the contract.”