Pension Hardship - Temporary loans arrangements – England and Wales.

In response to representations from the POA and other Civil Service unions about this scandal the Government is implementing a temporary loan scheme to alleviate the hardship being felt by members of the pension scheme who have had payments delayed. 

 A scheme has been established to support individuals experiencing financial hardship due to delays to their pension payments, as a result of the handover of Civil Service Pension administration from MYCSP to Capita,. 

Former Employers such as HMPPS are now able to offer transitional help by way of a loan. The loan is to address the financial hardship individuals may experience and bridge the gap until pension is paid.

It is not a form of compensation.

The loan is interest free and an initial single payment of £5,000 but can be extended in individual circumstances.

This temporary and transitional arrangement is in place until the end of this financial year (2025/26), loans will need to have been agreed within this period for individuals to receive payment.

This applies to partial retirees still in employment and those who have retired since 1 January 2025 from active service and not yet in receipt of their pension benefits and are suffering financial hardship.

If you are a deferred member that retired prior to 1^st January 2025 and you are facing financial hardship you should contact Capita on 0300 123 6666, selecting the option for help with financial hardship. Surviving spouses, dependants, pension credit members who are suffering financial hardship should also contact Capita on 0300 123 6666 and select the option for financial hardship.

HMPPS have confirmed that members who were active employees and have left since 1^st January 2025, or members that have taken partial retirement since 1^stJanuary 2025 can now make an application for loans by emailing. 

HRSupportHubMojHQ@justice.gov.uk