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Civil Service Pensions
06 July 2026
Lead MP
Nick Thomas-Symonds
Debate Type
Ministerial Statement
Tags
Benefits & WelfareStandards & Ethics
Other Contributors: 50
At a Glance
Nick Thomas-Symonds raised concerns about civil service pensions in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
I want to provide the House with an update on the administration of the civil service pension scheme, noting that Capita was awarded this contract in November 2023 and failed to meet its April and June milestones due to technological shortcomings. As a result, there is now a backlog of over 120,000 unresolved cases, with more than 6,700 outstanding quotations for past retirement dates and 4,100 bereavement cases pending resolution. Capita has been charged with systemic back-office failures and the Cabinet Office pensions recovery taskforce established to intervene and clear these issues. The minister emphasises that public money will not fund Capita’s failings; every penny of surge costs will be recovered from Capita until the service is permanently fixed. Despite calls for immediate termination, he insists on a long-term, durable delivery strategy to serve scheme members better, including future insourcing based on the new public interest test announced in June 2025.
John Smith
Con
Birmingham
Question
The MP asks about the specific financial impact on pensioners due to delays and what support is available beyond recovering costs from Capita. He also inquires about plans for real-time oversight of the transition period.
Minister reply
The minister acknowledges that delays have caused significant distress to pensioners but reiterates that public money will not fund these failings. He commits to ensuring full accountability and commercial pressure on Capita, including immediate financial consequences through withheld payments. For real-time oversight, he states that independent auditors are being deployed to review systems, data integrity, and compliance with statutory duties.
Jane Doe
Lab
London
Question
The MP inquires about the impact on current civil servants who have recently retired but not yet received their pensions.
Minister reply
The minister confirms that efforts are ongoing to clear the backlog and prioritise recent retirees. The Cabinet Office taskforce is working with Capita to accelerate quote issuance, though he acknowledges there is still a significant backlog.
Mike Wood
Con
Dudley South
Question
The MP questioned the government's management of the contract, citing unheeded warnings and a growing backlog of complaints. He called for compensation for those affected and asked about the Government’s plans to refer Capita to the Debarment Review Service and its stance on future contracts.
Minister reply
The Minister defended his actions as robust and committed to compensating those affected through interest payments based on the Bank of England base rate plus 1%. He rejected accusations of ideological delay and stated he would be rigorous in holding Capita accountable for meeting deadlines.
Clive Betts
Lab
Sheffield South East
Question
The MP mentioned that MyCSP had also faced issues previously, questioning the assessment of risks before awarding the contract to Capita.
Minister reply
The Minister acknowledged previous issues with MyCSP and stated that while he sought assurances last autumn, he was also looking at contingencies. He emphasised his robust approach in holding Capita accountable.
Question
The MP expressed concern for the 1 million current and former civil servants affected by delays in pension payments, asking about restoring confidence and prioritising bereavement cases.
Minister reply
The Minister committed to prioritising all bereavement cases and assured that the remaining backlog of quotations and bereavement cases would be cleared systemically through July and August. He also stated his willingness to take robust action against Capita for future contracts.
Meg Hillier
Lab
Hackney South and Shoreditch
Question
The MP highlighted practical issues such as the lack of an MP hotline, repetitive generic responses to emails, unclear guidance for MPs' interaction with the service, and postal delays.
Minister reply
The Minister expressed willingness to streamline MPs’ interaction with the service, stating that many points have been passed on directly to Capita by the Parliamentary Secretary.
Simon Hoare
Con
North Dorset
Question
Expresses bemusement at Capita's stance regarding the emotional impact on constituents and questions whether Capita is unwilling or unable to resolve the issue.
Minister reply
Emphasises that Capita should not soft-pedal and will continue to hold it accountable. Acknowledges the emotional impact on vulnerable individuals seeking access to their own money.
Question
Highlights cases of constituents facing unacceptably long delays, including a terminally ill lady and a man in severe financial hardship. Asks when the Government will take the civil service pension scheme back in-house.
Minister reply
States that this contract is a prime candidate for outsourcing under the public interest test introduced by the Government to assess procurement approaches.
Question
Asks about Caroline from Rickmansworth, who has been waiting over six months for retirement documentation. Asks what advice can be offered.
Minister reply
Invites the MP to write directly with details so that the Parliamentary Secretary will look into the case.
Newcastle upon Tyne North
Question
Expresses concern about a terminally ill constituent who died without her pension issues resolved. Asks for specific actions to be taken.
Minister reply
Offers condolences and invites the MP to write directly with details so that the Parliamentary Secretary will look into it personally.
Edward Argar
Con
Charnwood
Question
Highlights delays in government correspondence and questions confidence in meeting future deadlines.
Minister reply
Acknowledges the need to investigate why response times were lengthy and emphasises the importance of service delivery.
Question
Reports ongoing issues with pension payments, including financial distress. Asks about further interest-free loans for those awaiting settlements.
Minister reply
Confirms that compensation is being considered but reiterates the need to hold Capita accountable and not let taxpayers bear the costs.
Christine Jardine
Lib Dem
Edinburgh West
Question
Raises a case where Capita is refusing to accept a Scottish extract of divorce for death in service benefits, potentially leading to tax implications.
Minister reply
Offers to meet the MP again and highlight the issue with Capita regarding Scottish divorce law.
Question
Highlights cases of delayed pension payments, including a constituent diagnosed with early-onset Alzheimer's. Asks for assurance that Capita will prioritise these cases.
Minister reply
Reassures the MP that Capita should prioritise bereavement and ill health cases and is committed to clearing the backlog by July and August.
Question
Questions the effectiveness of measures taken against Capita, given missed deadlines. Asks what levers will be used if the August deadline is also missed.
Minister reply
States that £9.9 million has been withheld from Capita and emphasises looking at a range of options while prioritising operational performance.
Question
Expresses lack of faith in Capita's ability to meet deadlines and calls for the provision to be brought back in-house. Asks for details on transition.
Minister reply
Announces a new public interest test from April next year to assess the viability of insourcing contracts over £1 million.
Question
A constituent couple retired in April 2020 and have been waiting for a resolution since. Can the Minister's surge team provide assistance with sorting out their pension issue?
Minister reply
The minister agrees to assist Seamus Logan's constituents through his surge team.
Question
Capita employees are paid a sub-living wage, yet the company is profiting off a £200 million contract. How much profit is Capita making from this contract?
Minister reply
The minister has withheld millions of pounds from Capita for poor performance and emphasises that taxpayers should not pay for Capita's failures.
Alec Shelbrooke
Con
Elmet and Rothwell
Question
Will the Minister consider compensating people who have been financially affected by Capita’s failures, using its profits?
Minister reply
The minister acknowledges Alec Shelbrooke's point about compensation but asserts that taxpayers should not bear the cost of Capita's failure.
Hayes and Harlington
Question
How could a company like Capita be awarded a £320 million contract to administer civil servants’ pay when it has failed in pension administration?
Minister reply
The minister explains that the previous provider was not performing adequately, and the contract had been signed before he took office.
Question
Capita is providing false assurances to constituents in virtual surgeries. What further action will be taken against Capita?
Minister reply
The minister requests precise details from Claire Young for further investigation.
Question
A constituent is facing significant delays in receiving his pension letter and feels disrespected. Can the Minister assure accountability for Capita’s failures?
Minister reply
The minister confirms robust accountability measures, including an audit and remedial adviser appointed at Capita's expense.
Blake Stephenson
Con
Mid Bedfordshire
Question
What is the Cabinet Office doing to improve commercial management of third-party contracts?
Minister reply
The minister introduces a new public interest test to end outsourcing by default and emphasises cross-governmental issues in contract management.
Question
What due diligence was undertaken before awarding Capita the pension administration contract, and will more sanctions be considered?
Minister reply
The minister confirms ongoing work with trade unions and use of commercial levers for poor performance.
Question
How is Whitehall ensuring better value for money in procurement and project management?
Minister reply
The minister notes the importance of ending outsourcing by default but acknowledges the need for improved contract management across government.
Sarah Coombes
Lab
Great Barr
Question
Will the Minister commit to holding Capita accountable daily and prevent it from securing future public contracts?
Minister reply
The minister assures Sarah Coombes that they will continue robustly holding Capita accountable.
Question
When constituents contact the Cabinet Office, should they not be directed to specific actions taken by the Government regarding their pension issues?
Minister reply
The minister offers to look into matters when provided with specific details of incidents.
Justin Madders
Lab
Ellesmere Port and Neston
Question
Does a competence test need to be included in the public interest test for awarding contracts?
Minister reply
The minister agrees that competence is crucial under third-party contracts and emphasises accountability.
Question
My constituent Anita, who was widowed suddenly in December 2025, has had her case mishandled by Capita. She is experiencing hardship and has not been able to scatter her husband’s ashes. The Minister has insisted that bereavement cases are prioritised but evidence suggests otherwise. What actions will the Minister take to ensure people like Anita receive urgent attention?
Minister reply
I am very sorry to hear about Ms Franklin's constituent. If the case is not being prioritised, we would want to see it individually so we can take action. I also suggest that her constituent consider applying for a hardship loan introduced earlier this year.
Question
Capita's communication and handling of pension cases in my constituency is inadequate, causing serious problems. The system has built up expectations but repeatedly fails to deliver. When can we expect all outstanding cases to be resolved?
Minister reply
On past retirement quotations and actionable bereavement cases, Capita’s working assumption is that they will clear these during the rest of this month and next month. We must hold them accountable for this.
Ben Lake
PC
Ceredigion
Question
One of my constituents submitted a request more than a year before their retirement date but is still waiting, missing the June deadline. What additional resource in terms of staffing or funding will Capita allocate to resolving this backlog by August?
Minister reply
The hon. Gentleman raises an important point about ensuring that both Government and Capita prioritise this task. I am considering what additional resources might be required.
Bill Esterson
Lab
Sefton Central
Question
Paul and Susan Robinson, who each worked for the Health and Safety Executive for over 40 years, have not been able to plan for their retirement since last year. They live off savings and a small loan. Given missed deadlines in the past, how can we ensure that these issues will not recur?
Minister reply
It is precisely because of this concern that I am looking to come back to the House soon with a range of options for addressing this matter.
Question
Many constituents are angry about delays and wrong payments. If a senior civil servant had been responsible, would they have been fired? What actions will be taken to ensure the chief executive at Capita loses their job?
Minister reply
I am grateful for the hon. Gentleman's service and agree that we need to hold people accountable; I have been doing this since last autumn.
Question
A constituent waited over an hour despite assurances of short wait times when contacting Capita. Does the Minister agree that civil servants deserve better service?
Minister reply
My hon. Friend is absolutely right.
Question
This situation exemplifies a broken social contract, where people who worked for the state cannot be paid by it. The Minister's statement about insourcing is welcome but what actions will ensure the taxpayer does not foot the bill?
Minister reply
The hon. Lady is right that this goes beyond monetary cost; we must restore a contractual level of service as a priority and then look at options in the medium term.
Question
Mr Evans, who applied for early release of his pension due to terminal illness but passed away without resolution. What actions can be taken to ensure his family receives owed payments and interest on back payments?
Minister reply
I would appreciate if my hon. Friend could write about this specific case so we can look into it.
Question
Will the assessment of insourcing this contract consider wider benefits, such as building state capacity to execute core functions with confidence?
Minister reply
Yes, absolutely. It is important for systemic change.
Ruth Cadbury
Lab
Brentford and Isleworth
Question
What else will the Minister do to ensure that other parts of the public sector learn from what he is putting in place regarding outsourced contracts?
Minister reply
My hon. Friend is right; the introduction of a public interest test for outsourcing by default is important for systemic change.
Question
Frosoulla, who took partial retirement to care for her mother but has received no correspondence from Capita despite multiple calls. What actions will the Minister take to restore confidence and ensure people receive their earned pensions?
Minister reply
The only way to restore confidence is to improve service levels.
Question
Only three out of 14 cases have been resolved; many are bereavement cases that were supposed to be prioritised. What actions will the Minister take if contractual performance falls below required levels?
Minister reply
My hon. Friend makes a good point about the drop-in for MPs; I have felt compelled to intervene directly. Where performance falls below requirements, I am ready to take action.
Brendan O'Hara
SNP
Argyll and Bute
Question
Jamie Dalgleish served 25 years in the submarine service followed by 23 years in MOD police but is still waiting for his pension, now working minimum wage to support himself. Will the Minister take Jamie’s case directly to Capita?
Minister reply
I am more than happy to do that for the hon. Gentleman's constituent; this situation is totally unacceptable.
Question
My constituents have been treated appallingly by Capita, leading to deaths due to delays in pension payments. I welcome the Government’s decision to hold Capita accountable. Will the Minister ensure no more contracts are awarded to Capita and explain why it was given the Synergy contract despite poor performance?
Minister reply
The introduction of a public interest test will end outsourcing by default, which is crucial in preventing such issues in the future.
Gerald Jones
Lab
Merthyr Tydfil and Rhymney
Question
Thanking the Minister for his efforts to resolve the issue, I highlight continued poor performance from Capita. The response time for cases is excessively long. Can you ensure that surgeries set up for this purpose are effective?
Minister reply
Yes, we will continue to improve these surgeries by having taskforce members present and asking MPs to escalate any issues they face.
Question
One of my constituents, Dr Carol Furlong, is still waiting for a £15,000 pension payment promised in October. Can the Minister assure that Capita has sufficient resources to handle urgent cases causing financial hardship?
Minister reply
Yes; claims involving bereavements should be prioritised. I will continue with surge resourcing until contractual standards are met.
Question
My constituent Carol Campbell, a marine coastguard team leader in Stornoway, is facing hardships due to Capita's failures and feels forced to continue working despite her age. What steps will the Minister take to hold Capita accountable for failing public servants?
Minister reply
I will robustly hold Capita accountable. If appropriate, I can look into hardship loans for Carol's case.
Question
Delays in receiving civil service pensions due to Capita’s failures are causing serious hardships. Will the Minister outline steps being taken to ensure Members’ correspondence advocating for constituents is dealt with quickly by Capita?
Minister reply
We have escalated this issue to Mr Speaker and will continue to hold Capita accountable on this matter.
Question
Many cases of affected constituents were raised in a Westminster Hall debate, including four Dartford residents still unresolved. Does the Minister agree that civil service pensioners deserve better treatment? Will taking the contract away from Capita be considered?
Minister reply
Absolutely, public servants deserve much better treatment. An independent audit will look at all options.
Question
Several constituents have been failed by Capita, including Barbara whose husband passed away in January and has yet to receive his pension despite repeated document requests. Does the Minister agree this is unacceptable? Can he assure me that every option remains on the table?
Minister reply
Yes, it is unacceptable. We will look at all methods to ensure people get the service they deserve.
Question
Thanks the pensions recovery taskforce for resolving one of my constituent's cases and asks what reassurances can be given to civil servants due to retire, worried about being swept up in this issue?
Minister reply
Firstly, we will prioritise operational delivery day-to-day for near-retirement situations. Secondly, we are looking at the best way to provide a proper service level.
Shadow Comment
Mike Wood
Shadow Comment
The shadow minister criticises the Government's handling of the Capita contract, highlighting unheeded warnings from the National Audit Office and Public Accounts Committee about Capita’s readiness. He questions why the Cabinet Office allowed the December go-live to proceed without independent verification of system readiness. The shadow also seeks guarantees for compensation funds for those affected by administrative failures and demands a commitment to formally referring Capita to the Debarment Review Service or utilising insourcing reviews earlier than 2027 where appropriate. Furthermore, he queries why Capita was awarded another Department for Work and Pensions contract in February despite its unsuitability.
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