Emergency payments scheme launched

The introduction of interest free loans of £5000 for pension scheme members, instead of the payments due to them from their civil service pensions, will hopefully alleviate the financial distress the Capita crisis is causing.

PCS has been working with our PCS parliamentary group on behalf of more than 8,000 members with delayed pension payments.

Our particular thanks go to Lorraine Beavers, MP for Blackpool North and Fleetwood for securing a Westminster Hall Debate, carried without opposition on Wednesday, which was well attended. Lord Davies of Brixton followed this up with a parliamentary question on Thursday.

Responding from the front bench, Baroness Anderson described the payments as bridging loans of £5000, or exceptionally £10,000, to get money into people’s bank accounts within days, not weeks or months.

Members are reporting to us that they are being asked for financial information in a humiliating telephone interview and then told a decision will be given in five days, but with a potential wait of 28 days to receive the payment.

In a meeting with the Cabinet Office on Thursday (5) we asked if the measure is a bridging loan or a hardship payment. In response, we were told that the measure is intended to provide payment where pension benefits are overdue and that proof of hardship would not be required. PCS is monitoring this closely and, based on the intention set out by the Cabinet Office, our advice is not to accept decisions where the application is declined unless it is because your pension is not yet overdue.

As the emergency payments are being processed as employer loans, pensioners are being directed to contact their former employer. If your employment ended more than 12 months ago, and for payments to beneficiaries, this facility cannot be provided by the employer and people should contact Capita direct.

Capita can be contacted via their website or on 0300 123 6666. The postal address is Capita Pensions Solutions, PO Box 713, Darlington DL1 9JZ.