-
Question
Does the Minister unequivocally commit to delivering a functioning service in the timeframe he has set? Has a standardised mitigation letter been delivered for members experiencing financial difficulties, and will the House be updated after the commercial meeting on 28 April?
Minister reply
The minister reiterates the commitment to restore contractual standards by June this year. He confirms that standardised mitigation letters have been sent out for affected members. The minister also promises an update following the commercial session.
-
Question
The MP paid tribute to public servants, criticised Capita’s administration failures causing distress among retired workers, questioned the decision-making process regarding the CSPS contract, and inquired about enforcing penalties on Capita. He asked if a functioning service will be delivered by June 2024, whether mitigation letters have been issued as promised, and requested updates following meetings to discuss the wider commercial position.
Minister reply
The Minister acknowledged public servants' dedication, confirmed that milestone payments have been withheld from Capita and further legal actions are being explored. He committed to holding Capita accountable for delivering a functioning service by June 2024 and will consider appropriate steps post-commercial meetings.
-
Question
The MP highlighted shared responsibility between MyCSP, the Cabinet Office, and Capita for recurring pension scheme issues. He questioned the reliability of future assurances and inquired about considering an in-house team to administer public sector pensions.
Minister reply
The Minister assured that officials have been interrogated on inherited situations and that decisive action is being taken regarding contract breaches. The Government will explore insourcing options to prevent recurring problems with private providers.
-
Question
The MP questioned the timeline for resolving arrears, prioritising hardship and bereavement cases, and inquired about Capita covering costs of surge staff. He also requested details on plans following termination of the Royal Mail pension scheme contract.
Minister reply
There is a backlog of around 24,000 outstanding pension quotations. The Minister aims to prevent taxpayers from bearing costs for issues caused by Capita's incompetence and will consider options including continuity of service post-termination.
-
Question
The Minister just said that there was an offer from Capita. It should not be an offer; it should be a requirement that it covers the recovery costs. This failure has caused real harm, suffering, and stress to civil service pensioners. Why hasn't the contract been terminated? Will he meet the trade unions to discuss in-house provision?
Minister reply
The Minister acknowledges the need to hold taxpayers harmless for Capita's failures but says each contract must be considered individually. He commits to arranging a ministerial meeting with the PCS trade union to discuss in-house provisions.
-
Question
Does the Minister have confidence that his team will manage Capita and provide civil service pensioners with the scheme they deserve? Can he reassure Royal Mail pensioners about their pension scheme during transition?
Minister reply
The Minister assures Royal Mail pensioners of continuity of service. He expresses confidence in his team's ability to address issues, noting a surge of 140 officials into Capita and a review point at the end of June 2026.
-
Question
Will the Minister prioritise bereavement payments for those entitled under the death-in-service part of the CSPS? Will he hold Capita’s feet to the fire?
Minister reply
The Minister agrees on the importance of bereavement payments and commits to robustly holding Capita accountable. He reserves all contractual rights, but acknowledges a long-term contract with Capita for the civil service pension scheme.
-
Question
What is the update on access issues in the portal system? Constituents find it difficult to access their benefits and this erodes trust.
Minister reply
The Minister shares concerns about the portal's performance, mentions improved call times but acknowledges ongoing challenges. He encourages constituents with egregious examples of poor service to contact him directly.
-
Question
My constituent Andrew Mackay is still waiting for his late wife’s pension despite multiple attempts and engagement. What will the Minister say to my constituent?
Minister reply
The Minister expresses condolences on behalf of Katy's passing and suggests a meeting with the Minister, Satvir Kaur, to facilitate resolution.
-
Question
Has the Minister delivered on his promise of a standardised mitigation letter for those unable to access their pension benefits? Is there progress on the £7.2 million in interest-free loans?
Minister reply
The Minister confirms more than £7.2 million is available and will review progress on the standardised mitigation letter.
-
Question
What steps is the Minister taking to ensure this does not happen again? Is there any scope for extending compensation arrangements?
Minister reply
The Minister commits to learning lessons and pursuing every contractual lever to prevent taxpayer liability. A complaints procedure exists but he is determined to avoid future failures.
-
Question
Given Capita's financial position, how are the Government preparing for a potential crisis given its reliance on multiple contracts? What is the extent of monitoring?
Minister reply
The Minister confirms they monitor performance across all 85 public sector contracts and consider each contract individually. Continuous service integrity is paramount.
-
Question
I have constituents who are experiencing delays and difficulties in accessing their pensions through Capita-managed schemes, which is unacceptable. Can the Minister outline what quick action will be taken to hold Capita accountable and improve service?
Minister reply
The situation described by my hon. Friend is unacceptable. A recovery plan has been put in place and milestone payments are being withheld from Capita. I would appreciate details of any specific cases, including dates, for follow-up.
-
Question
There are many pensioners struggling due to delays in accessing their funds and some fear losing their homes. Is the Minister aware of any plans to prioritise those in severe hardship?
Minister reply
A surge team of 140 officials is prioritising urgent and vulnerable cases, including those in severe hardship. I would appreciate details of specific cases for direct follow-up.
-
Question
Capita's treatment of civil service pensioners has been shameful. Can the Minister update on the number of hardship loans issued and how the Government will continue to help affected members?
Minister reply
Over £7.2 million in interest-free transitional support loans have been provided to more than 1,300 members. The Government continues to proactively drive uptake and encourage Members across the House to do the same.
-
Question
Can the Minister reassure constituents that no civil servant will be left without timely pension payments? How will confidence in the scheme be restored?
Minister reply
A dedicated recovery team is in place, and I will hold Capita to account on the timetable for restoring service by June 2026. Details of specific cases would be helpful for follow-up.
-
Question
Why do we keep awarding contracts to Capita despite its poor performance? How does this align with the manifesto commitment of insourcing in a generation?
Minister reply
Each contract is considered on merit. The Chief Secretary will set out more details about the insourcing commitment soon. I have terminated the Royal Mail statutory pension scheme contract and will robustly hold Capita to account.
-
Question
Is it appropriate to award Capita another £700 million contract for civil service payroll given its poor performance with pensions?
Minister reply
Each contract must be considered on its own merits. Lessons learned from the pension scheme transition will be shared across Government, and procurement processes are being scrutinized.
-
Question
Will the recovery team remain in place until all backlog cases have their pensions processed?
Minister reply
The team will not withdraw if that would result in a deterioration of service. The contractual level of service is to be restored by June 2026, and I will hold Capita accountable.
-
Question
Will the Minister uplift interest-free loan amounts for those in precarious situations due to delayed pensions?
Minister reply
Specific cases would be helpful. Performance on MP correspondence is unacceptable, and I have given clear instructions about its urgent resolution.
-
Question
When will the civil service pension scheme finally stabilize? Many constituents are still waiting for pensions and compensation.
Minister reply
The contractual level of service is to be restored by June 2026. If this is not delivered, all rights under the contract with Capita will be reserved.
-
Question
What steps will be taken to ensure pensions are processed correctly and hold Capita accountable? Will insourcing be considered if necessary?
Minister reply
Stabilization is critical. The recovery plan includes robust accountability measures. I am on the side of pensioners, but stabilization is a priority in the immediate term.