Appearing in front of MPs on Parliament’s Public Administration and Constitutional Affairs Committee on Wednesday, Thomas-Symonds said he had signed off on hardship loans, which would be administered by government departments.

Catherine Little, chief operating officer for the Civil Service, told the committee the standard level for the loans would be £5,000, with up to £10,000 for exceptional cases.

A joint statement from Capita and Little said: “This is not the service members deserve.

“Capita and the Cabinet Office are deeply sorry for the worry, frustration and distress this has caused – particularly for those dealing with bereavement or ill health.”

They said the most urgent cases, for example those experiencing bereavement, ill-health or hardship would be prioritised, with those expected to be dealt with by the end of February.

More than 150 additional staff have been brought in to Captia to clear the backlog, bringing the total workforce to more than 650.

Those experiencing financial hardship are advised to contact their former department directly for support, if they retired within the last 12 months.

Those who left more than 12 months ago should contact Capita.