Commons Sense

House of Commons · Ministerial Statement

Civil Service Pensions

06 July 2026 · 50 other contributors

Opened by Nick Thomas-Symonds Lab Torfaen

Summarised by AI from the official record, so it can contain mistakes.

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.

Key points

  • Minister provides update on civil service pension scheme administration
  • Capita awarded contract in November 2023 but missed April and June milestones
  • Backlog of over 120,000 unresolved cases, including 6,700 pension quotations and 4,100 bereavement cases

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.

Other contributors (50)
  • 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.

  • Catherine McKinnell Lab 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.

  • John Martin McDonnell Lab 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

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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