THE UK Government has “betrayed” thousands of former civil servants after leaving them in the lurch without pension payments for months, an SNP MSP has said.
Michelle Campbell, SNP MSP for Renfrewshire North and Cardonald, wrote to the UK Government’s Pensions Minister to raise “serious concerns” over the issue.
The UK Government awarded Capita, a private company, a £239 million contract to manage the Civil Service Pension Scheme (SCPS) six months ago.
The “disastrous transition”, as Campbell describes it, led to a backlog of 86,000 unworked cases spiralling to over 120,000.
This has led to delayed pension quotes, missed lump-sum payments, and significant distress for retirees.
Members of the pension scheme reported problems almost immediately after Capita took over with difficulties accessing the new online portal, long waits to speak to call handlers and pension payments not being received.
The latest update from the UK Government said that 4000 retirement quotations – which project income after stopping work – were issued in the last two weeks. It also revealed that 2395 transitional support loans have been issued totaling £12.9 million. It said call volumes “remain high” and the wait time is now 17 and a half minutes.
“The taskforce continues with our immediate priority to stabilise the service and give current and former Civil Servants the service they deserve,” the UK Government update said.
Campbell, in a letter to Torsten Bell, Labour MP for Swansea and Pension’s Minister, said she had been contacted by constituents who had reported “significant delays in receiving their pension payments, detail of lump sums or survivor benefits”.
“For most, these pensions represent their primary source of income,” Campbell said in the letter.
“The disruption has therefore caused considerable financial distress, with some needing to take on post-retirement work to pay their bills.
“While I note the UK Government’s introduction of hardship loans to support those affected, requiring pensioners to take on repayable loans in order to access their own money is an inadequate solution.
“It is deeply troubling that individuals who have dedicated their lives to public service are left in this situation.”
Campbell asked Bell to set out the scale of the backlog, the average and maximum delays, what steps are being taken to resolve outstanding cases and whether any compensation will be provided. She also asked for assurances that the disruption would not happen again.
“Given the number of civil servants living in Scotland, I would welcome confirmation of what additional communication and support is being provided to those affected, including clear timelines for resolution,” she added.
Campbell told The National: “Westminster ignored all the warnings, dishing out a private contract that cost taxpayers hundreds of millions and it has all gone pear shaped.
“It is a Westminster story as old as time."
