PARLIAMENTARY DEBATE
Government Insourcing - 22 January 2026 (Commons/Commons Chamber)

The Government are committed to delivering the largest wave of insourcing in a generation. As part of that, we have consulted on plans to introduce a public interest test before any further services are outsourced and we will publish the results soon. Let me be clear: this Government will end the decade-long drive to outsource our public services and we will do so to deliver better value for money for taxpayers and better services.

The Minister repeated the promise that was made nearly 18 months ago when the Labour party came into power. We are not seeing a massive amount of insourcing at the moment. I have constituents in Moray West, Nairn and Strathspey who work on three different military bases as contractors. Many used to be civil servants and they have lost considerable pension benefits as a result of that outsourcing. There are many others in a similar position in Department for Work and Pensions offices, the Cabinet Office itself and other Government offices throughout the country. When can those workers expect to see some fairness in their contractual arrangements?

I know that the hon. Gentleman has raised that point about workers in his constituency before. We are making progress. The Employment Rights Act 2025 will make some progress, particularly by reinstating the two-tier code. We have consulted on a public interest test. I will bring forward our conclusions and proposals on that very soon, but as I say, the central point is that this Government will reverse the decade-long drive to outsource and bring more powers and resources in-house to deliver better value for taxpayers.

When the Government finally bring the in-sourcing process to fruition, they will have a lot more purchasing power over the services they buy and the goods they procure. Can the Minister give the House a categorical assurance that every penny of British taxpayers’ money spent using these new powers will be spent with British companies and British industries, so that we are supporting our own British economy?

That is one of the Government’s goals. Prime Minister Carney said he thought that Canada should be Canada’s best customer. I think that Britain should be Britain’s best customer, and we should work towards that. As I say, we will publish the proposals soon and I hope that we can make progress quickly.

I have been trying to get records from the Cabinet Office of a meeting held between Peter Thiel of Palantir, then Prime Minister Boris Johnson and Dominic Cummings on 28 August 2019. I am getting conflicting data back. Is it in the public interest that the management of this information is being outsourced to Palantir?

My understanding is that that has been dealt with by way of a reply to a written question that we have already put in the public domain.

The Minister will be aware that too many retired civil servants are waiting too long to be paid their pensions and lump sums. Seventy thousand people are still caught up waiting for past discrimination to be addressed under the McCloud remedy, and there are already concerns about Capita’s management very early in its new contract period. Does the Minister share my concern that this is completely unacceptable and that urgent action, as called for by the Public and Commercial Services Union, is required? Can he provide the House with a full statement on Capita’s performance in administering the civil service pension scheme at the earliest opportunity?

I know that this issue is affecting a lot of constituents who are former civil servants. I have had a lot of letters on it; I am sure everyone else has as well. The Minister for the Cabinet Office met PCS about the issue recently. He has also, I believe, met the chief executive of Capita. We are committed to holding Capita to account. We will do so, and if it is okay with my hon. Friend, the Minister for the Cabinet Office will write back to him with a fuller statement.