Thousands of retired civil servants across the United Kingdom are experiencing severe delays in receiving their pension payments, with some waiting for several months for sums exceeding £21,000. The issue has sparked widespread complaints and official criticism of the administrator, MyCSP.
National Audit Office Condemns Service Failures
The problems came under intense scrutiny in June 2025, when the National Audit Office (NAO) publicly criticised MyCSP for significant service failures following a steep rise in complaints. The watchdog highlighted systemic issues in the administration of the vital pension scheme.
One affected retiree recently revealed they had waited five months for a payment of around £21,000. This delay has caused considerable financial distress and planning difficulties for individuals who rely on these funds.
Capita Takes Over Amid Ongoing Concerns
The administration of the Civil Service Pension Scheme has now changed hands. In December 2025Cabinet Office transferred the contract from MyCSP to the outsourcing giant Capita. The total value of this new contract is £239 million over seven years, with an option to extend for a further three.
This transition has done little to immediately assuage the fears of pensioners. One retired teacher, commenting on the broader context of public pension administration, shared a similar ordeal with the Teachers' Pension Scheme, which was also run by Capita. They reported late payments of both a lump sum and their first monthly pension, leading to personal financial complications.
"Why would any government feel the need to put public pensions in the hands of a private company run for profit?" the retiree questioned, expressing a common sentiment among those affected.
Ombudsman Criticised and Calls for Action
Frustration is also being directed at the official channels meant to resolve such disputes. Another pensioner lamented the perceived inaction of the Pensions Ombudsman, describing the service as "thoroughly crap" and accusing the ombudsman of "sitting on their fingers rather than actually doing something constructive."
Gareth Davies, the Head of the National Audit Office, has issued a clear warning to the Cabinet Office. He stated, "Cabinet Office must reflect on the lessons learnt from MyCSP’s administration of the scheme, ensuring key performance indicators are monitored and enforced, and that important service improvements are introduced by Capita."
The situation leaves thousands of former public sector workers in a precarious position, awaiting crucial income while demanding robust and reliable service from the new administrator. All eyes will now be on Capita to deliver the promised improvements and restore trust in the system.
