Families of deceased civil servants may face 'unfair' tax due to delayed pension payments
Due to delays in administering the UK civil service pension scheme, transferred to Capita in December 2025, bereaved families risk losing the tax-free status of lump-sum death benefits. Under HMRC rules, the payment must be made within two years of the scheme being notified of the death. The chair of a parliamentary committee called the situation 'unacceptable', the Cabinet Office points to compensation mechanisms, but the ombudsman takes up to 18 months to consider complaints.
Aziz Karimov