Head teachers push DfE to fix 'failing' Teachers' Pension Scheme
NAHT says delays in pension payments and poor communications are leaving teachers and school leaders financially and mentally strained as the scheme confronts capacity issues.
The National Association of Head Teachers (NAHT) has demanded immediate action from the Department for Education (DfE) to address what it calls a failing Teachers' Pension Scheme, which serves roughly two million members and is managed day to day by Capita while remaining under the DfE’s overall oversight.
In a letter seen by BBC Radio 4's Money Box, the NAHT said there were serious concerns about how the scheme is run, including significant delays in pension payments, long waits for those trying to reach the scheme by phone, poor communication from pension scheme staff, and numerous unanswered queries and complaints. The union described its members as "deeply dissatisfied" and said it was shocked by the volume of help requests it had received. It called on both the Department for Education and the Teachers' Pension Scheme to take decisive steps to resolve the problems and to increase capacity to cope with demand.
James Bowen, the NAHT’s assistant general secretary, said the situation showed a failure to support teachers and school leaders who had paid into a system they are entitled to rely on. "It's just frankly not good enough," he said, adding that the department and the pension scheme needed to "get to grips" with the problems and accelerate resolving queries. He called for stronger leadership within both the Department for Education and Teachers' Pensions and suggested increasing capacity so the team could cope with demand that now appears overwhelming.
Joanne Hurst, a head teacher who has spent 40 years in education, has seen her retirement plans disrupted by the delays. After planning for a lump sum payment due on 1 September to help clear her mortgage, she was then meant to begin receiving monthly pension payments later in the month, only to receive neither. Hurst said the financial strain had cost her interest, forced her to tap other funds, and affected her mental well-being. "Each time I ring Teachers' Pensions I'm given different advice, conflicting advice," she told the BBC. "It's diabolical. I think it's grossly unfair for people who've worked all their lives [and] paid into a system. It's not a charity, it's something we are owed because we have paid into it."
The NAHT’s Bowen suggested that a 2018 legal judgement, which found that younger members of public service pension schemes were effectively discriminated against, had a lasting impact on how public service pension schemes are valued and managed. He said the judgement spurred changes in pension valuations across schemes and that the Government’s guidance, issued in March to align calculations, had not resolved all the underlying delays. "I've no doubt that is a huge part of the delays, but I don't think it explains it all," Bowen said. "There is likely a shortage of capacity as well, and those two factors together are creating the situation we see now."
Capita apologised for the delays and said active discussions were continuing to address the increase in enquiries being made to Teachers' Pensions. The Department for Education echoed that sentiment, saying it understood the delays had caused frustration and that it was continuing to work closely with Teachers' Pensions to resolve the issues as quickly as possible and advising people to check the TPS website for updates.
The Teachers' Pension Scheme is one of the largest retirement schemes in the UK and has long relied on public-private collaboration to run day-to-day operations. While capably serving two million members, the system’s complexity—rooted partly in changes to public sector pension valuations and shifting legal interpretations—has left some members waiting longer for payments and information than expected. The DfE stressed that it remains responsible for governance of the scheme and pledged to press for improvements as officials review capacity and process changes with Capita and Teachers' Pensions.
As the dispute unfolds, the personal stories highlight a broader challenge: ensuring timely, reliable pension payments for educators who have dedicated decades to the profession. The NAHT says it will continue to press for leadership and action, while retirees like Hurst await clarity on when they will finally receive the benefits they have earned. The Department and Capita have promised updates and continued dialogue, but for many teachers, the clock on retirement has already started ticking toward a delayed, uncertain payout.
