Prospect has slammed ministers’ lack of knowledge about the number of people who have not received pension payments in recent months.
The union raised the alarm after a Cabinet Office minister said the department did not know how many members of the Civil Service Pension Scheme were awaiting delayed retirement quotations or pension payments.
The union, which represents specialist civil servants, said it believes that thousands of people may be affected by significant delays to pension payments, including monthly payments and lump sums.
It said many people have been waiting for months, causing significant financial hardship including having to borrow money, struggling to meet mortgage obligations, and having to sign up for Universal Credit. Many CSWÂ readers have been in touch to raise similar concerns since the scheme transferred over from MyCSP to Capita last month. The issues also reflect those that occurred following the transfer from Capita to MyCSP in 2014.Â
The Cabinet Office was asked by Conservative Party MP Andrew Snowden on 13 January how many members of the Civil Service Pension Scheme are ”awaiting retirement quotations or commencement of pension payments beyond expected timescales”.
Responding on Monday, Cabinet Office minister Anna Turley said: “The administration transferred to Capita on 1 December 2025 and the first payroll ran successfully in the same month.
“At this time Capita has not provided this information to the Cabinet Office. The focus is on working with the Cabinet Office in order to resolve queries and delays and to move to a stable service as quickly as possible.
“We acknowledge and recognise that there are delays and are working closely with Capita in order to move to the expected service levels as quickly as possible. This includes providing additional support to Capita, increasing staffing by c50% over and above the number that transferred from MyCSP. It is also prioritising urgent cases.”
Highlighting this response, Steve Thomas, Prospect’s deputy general secretary, said: “This is a real scandal and, shamefully, the government doesn’t even know how many people are affected.
“This completely unacceptable situation has left people at the end of their career of dedicated public service unable to pay their mortgage, with no idea how long the situation will continue. Prospect alone has supported members in so many cases that we believe thousands could be affected.”
Thomas added: “This matter must be addressed immediately, compensation paid automatically, and steps taken to ensure this never happens again.”
A Cabinet Office spokesperson said: “We are aware of the issues some members have faced and we have instructed Capita to fix them urgently. We remain committed to working with Capita to ensure the scheme’s success and safeguard the interests of all members.
“We understand how important this is for members and taxpayers, and we have strong contractual levers in place to ensure Capita delivers, alongside strengthened controls over the scheme to ensure a more reliable and efficient service.
“We have been assured that Capita is rolling out targeted fixes to better meet the demands of members and employers.”
A spokesperson for Capita said it’s teams are “working tirelessly” to clear a backlog inherited from MyCSP that was more than double the expected size.
Prospect is one of several unions calling for urgent action.
The Prison Officers’ Association said it has written to the Cabinet Office along with fellow Trades Union Congress members, calling for “urgent and effective action” to address continuing failures in the administration of the Civil Service Pension Scheme.
The POA said “many members are experiencing unacceptable payment delays” and “these failures are causing serious financial hardship and distress” and “undermining confidence in the pension scheme”.
The union said it expects the Cabinet Office to set out a clear and firm timetable for clearing the backlog and resuming work on McCloud Remedy cases, and wants assurance that Capita will prioritise work to release all delayed pension and lump sum payments.
It also added to Prospect’s call earlier this month for a compensation scheme for those affected by prolonged delays.
The POA also called for a method to be put in place to prioritise hardship cases, those who are imminently retiring/partially-retiring, and bereavement cases, as well as any suggested changes in beneficiary.
CSW understands Capita is prioritising to reduce this backlog in order of priority cases, with an initial focus on those awaiting pension or exit payments.Â
The POA said members are “legally entitled to their pension benefits in a timely manner” and it will “continue to pursue this matter robustly and will consider all available options, including legal avenues, both on an individual and collective basis, to protect members’ interests”.
It also urged POA members to raise concerns with their local MP if they are currently affected by these issues.
A Capita spokesperson said: “At the time of contract signature, the volume of work in progress items left by the previous provider was agreed to be 37,000. Once we took over the scheme in December, however, we discovered that the backlog we were inheriting was in fact 86,000. As a result, we have experienced several times the normal volume of member queries since launch.Â
“Capita has over 500 full-time employees working to deliver the Civil Service Pension Scheme, an increase of 50% on the previous provider. Since the start of December, payments of over ÂŁ763m have been made. Our teams are working tirelessly to clear the backlog we inherited and resolve member queries as quickly as possible. We sincerely apologise for the inconvenience caused to our members.”Â
The spokesperson added: “Our programme of enhancements for CSPS members will continue to be rolled out over the coming months which will streamline the administration process and offer more tailored support structures to members.”Â
Earlier this month a spokesperson for Equiniti, which was the majority shareholder of MyCSP, told CSW that it had “worked closely with Capita and the Cabinet Office throughout the transition period ahead of the December 2025 cutover, including governance on handover arrangements and work in train”.
They said that, throughout its administration of the scheme, MyCSP “delivered consistently high service levels against agreed measures, while supporting the Cabinet Office through complex evolutions to the contract following government changes to public service pensions”.