RETIRED civil servants have been left with no income this month after the outsourcing firm that manages Civil Service pensions failed to pay them.

Capita was accused by the Public and Commercial Services (PCS) union today of failing to provide lump sums or regular payments to distressed current and former members since taking over the administration of the Civil Service pension scheme on December 1.

The union said thousands, including bereaved spouses waiting months for survivor pensions, face financial hardship as a result.

It reported hearing from people who cannot pay mortgages, rent or household bills and have incurred bank charges and late-payment fees.

PCS general secretary Fran Heathcote said: “This fiasco is extremely distressing for those who have worked and paid into their pension all their working lives. 

“PCS demands redress for the serious financial peril that many have been put in. Given the failures of the last contractor, and the current situation with Capita, we have serious doubts about the private sector’s ability to administer the scheme.

“We believe that this work should be run by the Civil Service, under ministerial control, so that it can be properly resourced and pensions paid on time. 

“And we call on the government to make good on its promise of ‘the biggest wave of insourcing of public services in a generation’.”

Capita said it had been expecting a backlog of 37,000 cases when it took over, but found 86,000 instead. 

“We sincerely apologise for the inconvenience caused to our members,” it added, saying that it now “has more than 500 people working on the project, double that of the previous provider.”