← Back to Westminster Hall Debates

Civil Service Pension Scheme

15 September 2026

Lead MP

Ian Byrne
Liverpool West Derby
Lab

Responding Minister

Sally Jameson

Tags

EconomyEmploymentBenefits & Welfare
Word Count: 10109
Other Contributors: 29

At a Glance

Ian Byrne raised concerns about civil service pension scheme in Westminster Hall. A government minister responded.

Key Requests to Government:

Byrne asked the Minister for three clear commitments: recovery, compensation, and accountability. He requested a firm dated timetable for returning the scheme to normal service, a clear and accessible route to compensation for financial losses, and a commitment to bring the administration of the civil service pension scheme back in-house. Dewhirst asks the Minister to clarify who authorised the go/no-go decision in November 2025, the criteria used for that decision, and to commit to publishing all related documents. He also inquires whether the Government will refer Capita to the Debarment Review Service to prevent it from continuing to bid for public contracts.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Liverpool West Derby
Opened the debate
Ian Byrne expressed serious concerns about the administration of the Civil Service Pension Scheme, highlighting cases of constituents who have waited for months to receive their pensions. He mentioned that in Liverpool West Derby alone, 35 people have contacted him with concerns. Byrne cited specific examples of civil servants who have faced delays in receiving their pension information, leading to financial and emotional distress. He also pointed out that Capita, the company contracted to administer the pensions, is failing its own staff, with 75% of workers considering leaving their roles due to poor working conditions. Charlie Dewhirst is concerned about the continued unresolved cases involving bereavement, death in service, and ill health, despite progress made in the civil service pension recovery plan. He criticises the Government for not taking action when it became clear that Capita was not meeting the required milestones for administering the pension scheme. He highlights that both the National Audit Office and the Public Accounts Committee had warned about the risks before Capita took over the scheme administration.

Government Response

Sally Jameson
Government Response
It is a pleasure to serve under your chairmanship, Dame Siobhain. I declare that I have a Capita Prison Service pension of six years, but I am 34 years away from my retirement age, so I do not have a current financial interest. I am also a member of the Prison Officers' Association. I thank my hon. Friend the Member for Liverpool West Derby (Ian Byrne) for securing this debate and actively campaigning on this issue for his constituents. The continued poor experience delivered by Capita since it became the administrator of the civil service pension scheme on 1 December 2025 is abysmal, causing worry and distress to many public servants and their families. Capita has set a commitment to achieve full service level agreements from the end of this month and will be meeting senior Capita staff later this month to challenge them again. The Government are committed to ensuring that no member is left financially worse off, and all complaints will be handled in line with Pensions Ombudsman standards. A formal contract rectification plan submitted by Capita in July is being tested by a remedial adviser from Grant Thornton to determine whether Capita can realistically deliver its commitments. The Government have appointed a Government internal audit agency to undertake a deep review of Capita's operational arrangements between December and July. Over £100 million has been approved for interest-free transitional support loans to public servants, with more than 4,100 loans provided to date. The volume of outstanding MPs' correspondence has peaked at 2,200 open cases but has decreased slightly to 1,700. The Government are using all commercial levers to hold Capita to account, including withholding nearly £10 million in contractual payments for undelivered milestones and deploying auditors to get a full understanding of Capita's failure. Core operations are being propped up by 140 surge staff, and the number will increase if required. The Government will not permit Capita to reduce its own headcount until performance has improved. I am personally committed to continuing to work with the unions and will be meeting the Civil Service Pensioners' Alliance this week. I am committed to doing what needs to be done in terms of the long-term viability of the scheme, but it must be done in the interests of the members with no disruption. Capita, not the taxpayer, must pay for its mistakes. The Government will not accept further caveats or moving targets and will not accept continued poor delivery for current and former civil servants, who deserve better in their retirement.
Assessment & feedback
Summary accuracy

About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.