For the first time in recorded history, retired civil servants are collecting annual pensions exceeding £150,000, with 23 individuals now surpassing the unprecedented threshold revealed in newly released Freedom of Information data.
A total of 263 former Government employees are now receiving six-figure retirement payments each year, while the taxpayer burden linked to civil service pensions is expected to reach £7billion during the current tax year.
The figures, obtained by The Telegraph, have prompted renewed criticism from senior political and economic figures, with former business secretary Sir Jacob Rees-Mogg describing the arrangements as "unaffordable".
Paul Johnson, former director of the Institute for Fiscal Studies and Government economist, also criticised the scale of the payouts, warning the scheme had become "out of control".
The revelations come despite reforms introduced in 2022 designed to curb the rising costs associated with public sector pension schemes.
The scale of growth in the highest pension brackets has accelerated sharply over recent years, according to the data.
During the 2022/23 financial year, 3,025 former civil servants were receiving pensions worth more than £50,000 annually, while 71 individuals collected more than £100,000.
By the start of the 2026/27 financial year, the number receiving pensions above £50,000 had risen to 7,234, while the number receiving more than £100,000 annually had climbed to 263.
Civil service pensions: 23 retirees now receive more than £150,000 a year as taxpayer costs soar
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The Cabinet Office confirmed no pension payment exceeded £150,000 between 2022 and 2025, although officials said they did not yet hold data covering the most recent financial year.
Civil servants currently benefit from guaranteed inflation-linked pensions based on career average earnings, with the previous final salary arrangement having been discontinued in 2022 following concerns over spiralling long-term costs.
Mr Johnson said: "These are extraordinary numbers reflecting pension schemes that have ended up paying out far more than you would ever imagine is reasonable.
"This is evidence of a pension scheme that, at least historically, has got out of control."
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Sir Jacob Rees-Mogg has said the pensions are unaffordable
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Mr Johnson also said: "I think the real issue is we've got a totally wrong balance between pay and pensions, and it's increasingly wrong as the private sector no longer has anything along these lines."
Sir Jacob said: "Gilt-edged public sector pensions are unaffordable.
"It is time they were abolished and civil servants moved to defined contribution pensions, which are now standard in the private sector."
Daniel Herring, of the Centre for Policy Studies, said ordinary working Britons were funding the retirement payouts through general taxation rather than through a dedicated investment fund.
A Labour spokesman defended the pension arrangements and said: "High value pensions represent a tiny proportion of members and include pensions earned in historic final salary pension schemes that are now closed to new entrants."
The spokesman added: "This follows significant reform to make them better value for the taxpayer."
Britain’s wider public sector pension liabilities are now estimated to stand at £5.8trillion, while around £57billion is distributed annually to retired workers across Government services.
The Civil Service Pension Scheme, which is administered by Capita, has also faced operational difficulties affecting thousands of members.
Around 8,500 members have experienced delays to pension payments, lump sums and death benefit claims linked to the scheme.
Nearly 800 retirees have reportedly been forced to apply for Government crisis loans worth up to £10,000 while awaiting their pension entitlements.
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