Emergency loans offered to civil servants waiting on pensions

"Civil servants who have been left in financial hardship because of delays receiving their pensions are being offered interest-free loans of up to 10,000. Cabinet Office Minister Nick Thomas-Symonds told MPs the waits faced by retired civil servants were "completely and utterly unacceptable". The government said around 8,500 people have had issues with pension payments since Capita took over the administration of the Civil Service Pension Scheme in December."

"The company has apologised to those affected, saying it inherited a backlog of 86,000 cases. Appearing in front of MPs on Parliament's Public Administration and Constitutional Affairs Committee on Wednesday, Thomas-Symonds said he had signed off on hardship loans, which would be administered by government departments. Catherine Little, chief operating officer for the Civil Service, told the committee the standard level for the loans would be 5,000, with up to 10,000 for exceptional cases."

""This is not the service members deserve. "Capita and the Cabinet Office are deeply sorry for the worry, frustration and distress this has caused - particularly for those dealing with bereavement or ill health." They said the most urgent cases, for example those experiencing bereavement, ill-health or hardship would be prioritised, with those expected to be dealt with by the end of February."

Delays in pension payments have left civil servants in financial hardship, prompting the government to offer interest-free hardship loans administered by government departments. Nick Thomas-Symonds described the waits as "completely and utterly unacceptable." Around 8,500 people have reported payment issues since Capita assumed administration of the Civil Service Pension Scheme in December, and Capita says it inherited a backlog of 86,000 cases. Standard loans will be 5,000, with up to 10,000 available for exceptional cases. Urgent cases such as bereavement, ill health, or hardship will be prioritised and expected to be resolved by the end of February. Over 150 extra staff have been added at Capita to tackle the backlog. The PCS union reports members unable to pay bills and seeking compensation.

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