UK government says retired civil servants failed by pension outsourcing
8 reported
The UK government has acknowledged that retired civil servants have been failed by the decision to outsource their pension scheme, with some left waiting up to a year for payments. The scheme has been run by the private company Capita since December, and multiple members have reported being unable to afford rent and forced to use food banks after losing their income. An estimated 17,000 relatives of deceased claimants are also facing financial hardship due to delays. The Cabinet Office has confirmed it is looking to bring the scheme back in-house following what it described as “unacceptable” service levels. The Guardian first raised concerns in December, and MPs had warned that Capita was ill-equipped for the task. Among those affected are a 98-year-old widow and a young widow forced to claim universal credit. Capita was awarded a £239m contract despite having previously lost contracts for Teachers’ Pensions and the Royal Mail statutory pension scheme due to delays.
What’s reported
The government admitted retired civil servants have been failed by the pension outsourcing decision.
The scheme has been run by Capita since December.
Some members waited up to a year for payments.
An estimated 17,000 relatives of deceased claimants face financial hardship.
The Cabinet Office is looking to bring the scheme back in-house.
Capita was awarded a £239m contract despite losing previous pension contracts.
A 98-year-old widow and a young widow forced to claim universal credit are among those affected.
Capita inherited a backlog of 90,000 cases from the previous administrator, Equiniti.
Key figures
Nick Hitch (son of a 98-year-old claimant)
Sarah Colhill (widow forced to claim universal credit)
Nick Thomas-Symonds (Cabinet Office minister)
Fran Heathcote (general secretary, Public and Commercial Services Union)
Sally McEnhill (widow, assumed name)
Christine Chalker (widow, assumed name)
Sources: The Guardian
