Evening Briefing · Wednesday 21 October 2026
Bereaved Civil Service Families Face Tax Bills Over Pension Delays
The Commons public accounts committee has warned that delays at the Capita-run civil service pension scheme could leave bereaved families with tax bills, because lump sums are tax-free only if paid within two years. More than 1,600 families have waited over 100 days for death-in-benefit claims.
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“It is unconscionable that the families of loyal and dedicated civil servants… could potentially face such an unjust financial penalty,” said Sir Geoffrey Clifton-Brown, the committee’s chairman. The Cabinet Office says it cannot stop HMRC taxing late claims; families must instead go to the Pensions Ombudsman, which estimates an 18-month wait. The committee wants the law changed so relatives do not pay for administrative failure.