{"id":613482,"date":"2026-05-31T10:05:18","date_gmt":"2026-05-31T10:05:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/613482\/"},"modified":"2026-05-31T10:05:18","modified_gmt":"2026-05-31T10:05:18","slug":"pension-scheme-crisis-cabinet-office-doubles-maximum-hardship-loan-to-20000","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/613482\/","title":{"rendered":"Pension scheme crisis: Cabinet Office doubles maximum hardship loan to \u00a320,000"},"content":{"rendered":"

The Cabinet Office is increasing the upper limit for hardship loans being offered to members of the Civil Service Pension Scheme left waiting for payment because of the ongoing crisis. \u00a0<\/p>\n

It will double the maximum payment available under arrangements for emergency \u201ctransition support loan payments\u201d to \u00a320,000, according to an update from Civil Service Pensions Taskforce lead Angela MacDonald yesterday.\u00a0<\/p>\n

Hardship loan payments were introduced earlier this year to aid the thousands of former civil servants left without\u00a0lump sums and regular monthly payments<\/a> as a result of delays that emerged after Capita took over as scheme administrator in December. \u00a0<\/p>\n

MacDonald said yesterday that the upper limit on hardship loans had been agreed \u201cbecause there have been further delays\u201d.\u00a0<\/p>\n

\u201cThis really is not the situation we ever wanted to be in, but it continues to be [a] necessary intervention by civil service employers to step up to help their employees,\u201d she said. \u00a0<\/p>\n

According to the latest figures from the Cabinet Office, more than 1,300 transitional loans have so-far been extended to former civil servants who left their roles after 1 January last year and have been affected by the CSPS backlog. It said the total value of those loans is \u00a37.2m.\u00a0<\/p>\n

Civil service union Prospect warned last week that the Cabinet Office must prepare to deal with tens of thousands of compensation claims likely to arise from the backlog crisis<\/a> \u2013 and put the necessary resourcing into place.<\/p>\n

\u2018Disappointing\u2019 trend\u00a0<\/p>\n

Elsewhere in her update, MacDonald acknowledged her taskforce continues to see concerns being escalated from \u201cunderstandably distressed\u201d scheme members retiring because of ill health and from relatives of officials who have died in service or after retiring.\u00a0<\/p>\n

\u201cThis is an area where we had been informed that service had significantly improved and therefore it is very disappointing to see that this is not what is happening,\u201d she said. \u00a0\u00a0<\/p>\n

\u201cWe are working with employers and with Capita to identify relevant cases and address the poor service delivery. I am sorry this is happening, it is not acceptable.\u201d\u00a0<\/p>\n

Capita and the Cabinet Office are committed to returning the CSPS to its contracted service levels by the end of next month, however MacDonald\u2019s update stresses that \u201csignificant work\u201d is still required.\u00a0<\/p>\n

\u201cAs we head towards the end of June, we are working with Capita to ensure as many people as possible see an improvement to the service they have experienced thus far,\u201d she said. \u00a0<\/p>\n

\u201cWe are exploring all areas where members highlight that your experience is not aligned with the operational data that we receive. There remains significant work to do and civil service teams continue to work hard with Capita to deliver for all affected colleagues.\u201d\u00a0<\/p>\n

MacDonald added: \u201cI know we still aren\u2019t in a good enough position with too many families impacted by what is happening. The recovery team will continue to provide you with regular updates on actions being taken. I want to thank you for your valuable feedback and continued fortitude.\u201d\u00a0<\/p>\n

MacDonald\u2019s official job is second permanent secretary at HM Revenue and Customs but she was drafted in to lead the Civil Service Pensions Taskforce in January. She is due to retire from the civil service<\/a> at the end of July.<\/p>\n

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