Capita is expected to miss a deadline for meeting contractual terms in the Civil Service Pension Scheme. A taxpayer-funded ‘surge team’ is likely to stay on beyond 30 June to help clear a backlog that has seen some members and dependants wait months for their payments. Unions have now started a petition to bring the administration in-house. 

The Public and Commercial Services Union and Prospect have launched a petition to transfer CSPS administration back in-house, receiving over 4,000 of the targeted 5,000 signatures within two days.  

The petition comes after the Cabinet Office, which manages CSPS, told PCS last week that it expects Capita to miss a deadline to restore administration services to contractual levels, according to the union. A further meeting is scheduled for Friday this week. 

PCS said that no new deadline has been set for Capita, and that the government is funding the surge team, consisting of 150 civil servants, to help the struggling outsourcer clear the backlog.

“This is beyond disappointing, but I can’t say it’s surprising. Capita has missed deadline after deadline, yet civil servants and pension scheme members continue to pay the price for those failures,” said Fran Heathcote, PCS general secretary.

"Minor financial penalties mean little, when you look at the size of the contracts they’ve been rewarded. They're certainly no comfort if you're facing financial hardship because you've retired and your pension hasn't been paid. Ministers must now take immediate steps to bring the administration of the Civil Service Pension Scheme back into the civil service,” she added.

Steve Thomas, deputy general secretary at the Prospect union, said ongoing failures in the administration of civil service pensions are causing distress, adding: “Civil servants who have dedicated their careers to public service should not be left facing delays, uncertainty and poor communication when it comes to their pensions.” 

Thomas also called on the government to take urgent action to fix the backlog, compensate those affected and move pension administration in-house. 

Paymaster general Nick Thomas-Symonds had set the June deadline after significant issues emerged when Capita took over the contract from MyCSP, with both administrators blaming the other for the ongoing delays. The Cabinet Office is currently investigating the respective liabilities of both Capita and MyCSP for these failures. 

 

Critical cases like bereavement and ill-health retirements were due to be resolved by February 2026. Some civil servants and dependants have been left waiting for pension payments for several months, with an emergency loan scheme by the government having had to be put in place as people faced financial hardship.   

PCS said it is aware of scheme members who have written to the Pensions Ombudsman. They might now be going through the scheme’s independent dispute resolution process. 

The Cabinet Office did not say if it expects Capita to miss the 30 June deadline or if it told PCS that this would be the case. 

“The service levels following the move to Capita have been unacceptable. An urgent recovery plan is underway, and our immediate priority is to stabilise service levels and give current and former civil servants the service they deserve,” a spokesperson for the Cabinet Office said. 

“To this end, the minister for the Cabinet Office Nick Thomas-Symonds set a deadline of the end of June for significant progress to have been made in this area, and we will assess the situation at the end of the month. We will continue use all available commercial levers to hold Capita to account and ensure they deliver for both members and taxpayers,” the spokesperson added. 

A spokesperson for Capita said: “We are sorry for the worry and frustration experienced by any members. The improvement plan is Capita’s highest priority. Our focus is on ensuring members of the Civil Service Pension Scheme experience the service they deserve."

They added: “Since December 1, 2025, Capita has facilitated payment of £4.1bn in pensions benefits to members. Our call answer time for the most critical cases is now under 97 seconds. We are in daily communication with the Cabinet Office to provide status updates and will continue to work closely with them to improve service delivery.”

In April, Thomas-Symonds removed Capita’s contract to administer the Royal Mail Statutory Pension Scheme, citing a failure to meet key milestones. Several MPs have urged the government to also end the firm’s contract for the troubled Civil Service Pension Scheme and set up an in-house administration team.