Emergency loans offered to civil servants

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.

A joint statement from Capita and Little said: “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.

The BBC is reporting that over than 150 additional staff have been brought in to Captia to clear the backlog, bringing the total workforce to more than 650.

Those experiencing financial hardship are advised to contact their former department directly for support, if they retired within the last 12 months.

Those who left more than 12 months ago should contact Capita.

Anthony Price, 58, retired from the prison service last June for health reasons and had agreed a compensation payment because he was unable to continue working there because of his condition.

However, despite multiple calls to Capita, waiting on hold for more than four hours, he has still not received the money.

Anthony, from St Helens, told the BBC he had been forced to borrow money from family to cover his rent and bills.

With his wife also unwell, Anthony said the issue had caused them a huge amount of stress and was affecting his mental health.

“I’ve not been able to cope. It’s keeping me awake,” he said. “Christmas and New Year were cancelled – we couldn’t do anything.”

After his MP intervened in his case, Anthony was told he would be paid within five days. But he fears if he has to wait any longer he will not be able to pay his rent and could lose his home.

Anthony said the offer of an interest-free loan from government was “too little, too late” as he had already been forced to borrow money for January and February. “It’s so embarrassing,” he said. “I shouldn’t be feeling like this.”