Widow Kay Donald Waits Nine Months for Husband's Civil Service Pension Payments
Kay Donald of Glasgow has been unable to access her late husband Barry Donald's Civil Service Pension for nine months following his death last September. She describes the situation as 'distressing', reporting repeated failures by Capita, the firm outsourced to manage the scheme, to process her entitlements. Barry Donald, 63, worked for Social Security Scotland for five years after 26 years at Asda.
Capita's Systemic Failures and Government Intervention
Capita assumed control of the Civil Service Pension Scheme, encompassing 1.7 million members, in December of the previous year. This transition has been marred by an array of issues, including an initial backlog of 86,000 cases that swelled to over 120,000 by February. Scheme members have faced significant delays in receiving lump sums and ongoing pension payments, forcing some into unexpected employment or deferred retirement.
The Cabinet Office was forewarned in an October 2025 Public Accounts Committee report regarding Capita's readiness for the scheme's administration, particularly concerns about reduced staffing levels. These warnings proved accurate, leading to the UK government's introduction of a recovery plan in February. This plan involved drafting in 150 government staff and 100 additional Capita personnel to tackle urgent cases, alongside an emergency interest-free loan scheme.
Paymaster General Nick Symonds publicly criticised Capita's performance, stating it had 'fallen far short of the required standard' and caused 'distressing and entirely unacceptable' financial hardship for members. Capita's contract to manage the Royal Mail pension scheme was terminated in April following a data breach affecting 138 members and a failure to meet 'critical transition milestones'.
Fran Heathcote, General Secretary of the PCS Union, whose members rely on the scheme, has called for the government to reassess the outsourcing arrangement, suggesting the work be brought back in-house. Capita has offered an apology for the 'worry and frustration' caused, asserting that additional resources are now in place to achieve normal service levels.