Public Sector Pensions McCloud Remedy 2025-06-19

Opened the debate

I rise today to discuss an issue that I am sure affects not just my constituents in Edinburgh West but many of our constituents across the United Kingdom. Since 2018, thousands of civil servants, teachers, doctors, nurses, police officers and firefighters have been waiting for the compensation they are entitled to through the McCloud remedy... This is what has happened to my constituents in Edinburgh West who have come to me with their issues with the administration of the remedy—not the remedy, but the administration of it—and the possible future impact on other pension schemes. One of my constituents who was affected is a retired police officer who served 25 years... Another constituent started working for Lothian and Borders police in 1996 and retired in 2022, knowing he would only receive his pension for his service between 1996 and 2015, while the remedy was calculated. He estimates that he is now owed more than £30,000 in terms of both his commuted lump sum from the new scheme and the lower monthly pension...

Government Response

I congratulate the hon. Member for Edinburgh West (Christine Jardine) on securing this debate... The McCloud remedy is, by its nature, a complex undertaking, as I am sure she will appreciate... Delivering the remedy to more than 3 million affected scheme members is also an intensive administrative challenge... Providing these statements to members, together with the other aspects of implementing the remedy, is the responsibility, as the hon. Lady will know, of pension scheme managers. For the largest public service schemes, including the NHS scheme in England and Wales, the teachers’ scheme in England and Wales, and the civil service scheme across the UK, the scheme manager is the relevant Secretary of State... The devolved Administrations—this is pertinent to the concerns raised by the hon. Lady, the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie)—have responsibility for administering their schemes. We are aware of the challenges faced by scheme managers in providing RSSs and RPSSs, acknowledging that it is complex due to different factors affecting various schemes. The Public Service Pensions and Judicial Offices Act 2022 sets out a deadline of 31 March 2025 for issuing statements or such later day as the scheme manager considers reasonable. Significant progress has been made in schemes like the police, with around 90% of RSSs issued in England and Wales and similar figures in Scotland. However, other schemes are behind, like the civil service scheme which has issued about 45% of immediate choice RSSs. The Government recognises that delays can be frustrating and have committed to ensuring all affected members receive their remedy quickly, prioritising those already receiving pension benefits or approaching retirement. Interest will be paid on arrears for individuals experiencing delays, applied at 8% when the scheme owes money and 3.5% when the member owes money to the scheme. Scheme managers are encouraged to resolve cases as quickly as possible and set out new deadlines where discretion is exercised. The Pensions Regulator must also be kept informed of plans and progress. Delays in RPSS provision affect a smaller number of people but are difficult for those waiting, so schemes should keep members informed and provide support. Recent correspondence from the Pensions Minister to responsible Departments has requested details of their plans to issue remaining RSSs and RPSSs to all affected members. A robust statutory remedy is in place with schemes working towards effective delivery.