The Daily BriefEvening Briefing · Wednesday 21 October 2026 · 06:00 BST
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.

Dive deeper

“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.

More from this briefing →