PARLIAMENTARY DEBATE
Civil Service Pension Scheme - 15 September 2026 (Commons/Westminster Hall)

Order. [Interruption.] Congratulations to the Minister—right on time.

I beg to move,

That this House has considered the administration of the Civil Service Pension Scheme.

It is a pleasure to serve under your chairship, Dame Siobhain. I thank all hon. Members from both sides of the House for attending on a one-line Whip, which shows the strength of feeling. Their presence proves that the unresolved problems that have emerged for many in Liverpool West Derby represent a national scandal requiring a national response. In my constituency alone, 35 people have contacted me with serious concerns about the administration of their civil service pension. I speak for them, and for civil servants, pensioners and bereaved families across the country being badly let down. They have served the public, paid into their pensions and planned their retirements in good faith.

On a point of order, Dame Siobhain. I wonder if it is reflective of the failure to pay pensions on time, or to get the basic administration right or even a quote out, that the Minister does not turn up on time for a debate that follows an earlier one about the failure to look after pensioners under this Government.

I call Ian Byrne.

These civil servants are entitled to expect accurate information, pensions paid when they are due and accountability when things go wrong. With the permission of my constituents, I want to place on the record three West Derby cases. Dave Barlow has spent around 18 months trying to obtain up-to-date pension information. He tells me that he has not received an annual benefit statement for several years. Dave, who is reducing his working week partly to care for his elderly parents, is due to begin partial retirement on 6 October, yet he still does not have the information needed to plan his finances. He was given no guarantee that his pension would be ready, no timescale for his statement and, incredibly, was told by Capita to approach his employer for hardship support if necessary. Think about that—a civil servant may have to seek hardship support because the private company paid to administer his pension has totally failed to do its job.

Does my hon. Friend agree that the failure of the private sector in this instance, which also affects pensioners in my constituency, shows the benefits of the Government taking control and in-sourcing this pension scheme once and for all to deal with the issue?

That excellent point is well made, and I will raise it in my speech.

The civil service pension scheme is not delivering for the people who have put faith in their hard-earned income, as the hon. Gentleman said. When Capita took on the scheme, it was already facing a backlog of cases and was likely ill-equipped for the task. Serious questions must be asked about whether a sufficiently thorough assessment of Capita’s capability to take on such an important responsibility was undertaken before this transfer occurred. Should its capability to do the job it was tasked with not have been ascertained?

A point well made.

James Burke works for the Department for Work and Pensions in the Child Maintenance Service. James entered partial retirement, reducing his working week salary by about 20%, with his pension intended to replace the lost income and provide a lump sum. Neither has arrived. With his mortgage due for repayment on 30 July, his borrowing increased and his provider told him it could not offer a new product. James made nine calls to the helpline, sometimes waiting around two hours. He was promised resolution, then told payment was imminent before being informed that no timescale could be provided.

In my constituency, constituents have complained of delays of over nine months to receive their pension. One terminally ill constituent’s case should have been fast tracked, but was not. Like my hon. Friend, I have had complaints about people waiting over two hours to get through to the helpline and then receiving conflicting information, and of documents sent by constituents being lost. Does my hon. Friend agree that we should put more pressure on Capita, and perhaps have stronger oversight by the Cabinet Office, to get better accountability and more investment in technology and data quality?

I agree completely with my hon. Friend. I will not be taking any more interventions, because people have put in to speak.

Another of my constituents, Karen Morrow, took early retirement at the end of June. She will not receive a state pension for another two years. The civil service pension she earned was supposed to supplement her income. After two years of delay and inaction, she was told that her documents would be uploaded by 4 August and she might receive her pension by the end of that month. August came and went, and Karen received nothing. She has chased every single week. On her latest call, she waited three hours to be told only her that her case would be escalated—with no payment, no explanation and no reliable timescale. Karen has been left without an income since the end of June.

The circumstances of the constituents’ cases I raise may differ in nature, but the pattern is the same: they earn their pension, yet carry the debt, uncertainty and stress created by a failing system. These are not minor administrative errors; they are major failures with serious human consequences.

It is not just my constituents and many others around the country waiting for their pensions who have been failed by Capita; it is Capita’s own staff as well. Workers employed by Capita, including many in my city, have reported to the Public and Commercial Services Union that they are suffering due to the company’s failure to deliver on the contract. They struggle physically and mentally as a result of inadequate staffing levels, insufficient training, poor processes, inappropriate IT systems and constantly changing demands.

More than half of Capita’s workers who took part in a PCS survey said that they experience stress every day or most days, with a quarter responding that they are frequently extremely stressed. One PCS member described their day-to-day experience:

“every day is draining and it’s always a massive relief when my working day is over.”

Many are resigning because working conditions have become intolerable. More than 75% told PCS that they are considering leaving their roles. Is there any wonder we are in this mess? We know that Capita has failed in its duty to run the civil service pension scheme, but clearly it is also failing its own staff.

The Government’s actions confirm the scale of the crisis. In February, Ministers said that they were working to bring most aspects of the service back to expected levels by June. That deadline was missed. In July, after sending two separate letters to the Cabinet Office in December and March, the Government confirmed, in response to a written parliamentary question of mine, that Capita had failed to restore standard contractual service. Ministers rightly withheld the £9.9 million, deployed independent auditors, appointed a remedial adviser at Capita’s expense and recovered the cost of Government surge teams.

Last Friday, Karl Flinders from Computer Weekly, having covered the scandal over the last year, reported that the Cabinet Office is establishing a team with direct access to Capita’s systems to independently validate its data. That is welcome, but is it not extraordinary that the Government have relied on Capita’s own management information in the first place? The contractor under scrutiny has been supplying the figures by which its performance is judged. How can Capita possibly be held to account in the way that it clearly needs to be?

Despite those repeated interventions by the Government, on 7 September more than 1,000 bereavement cases were still more than 100 days old, alongside 308 death-in-service cases and 288 payment cases. Around 900 retirement quotations also remained from the backlog that Capita committed to clear. Bereavement, death-in-service and retirement are not cases on a spreadsheet; these are human stories—people facing some of the most difficult moments in their lives. The sequence is clear: a deadline was set, missed and followed by emergency measures, yet hundreds remain trapped in the backlog.

Progress is welcome, but progress is not resolution. The question is no longer whether there has been a serious failure—that is absolutely beyond dispute. The question is when will civil servants, pensioners and bereaved families finally see the end of it? I have raised this repeatedly with Ministers; sought Cabinet Office engagements with the PCS general secretary, Fran Heathcote; supported parliamentary motions; and tabled questions on the backlog, compensation, sanctions and bringing the service back in-house. I secured this debate because constituents are still coming to me in absolute distress.

This brings us to the fundamental question of outsourcing. We are told that outsourcing delivers efficiency and transfers risk, but when Capita failed, civil servants cleared the backlog, employers provided hardship funds and Government-appointed auditors and MPs became an escalation route, so where exactly was the risk transferred? Administration was outsourced; responsibility was not. A private company holds the contract while the public sector picks up the pieces, and all the while our constituents carry the consequences.

This is the failed ideology of outsourcing laid bare: born under Thatcher, followed by successive Governments of all colours in the name of efficiency while delivering absolutely the opposite and putting the burden on ordinary people. Whether it is Fujitsu in the case of the Post Office Horizon scandal, or even our failing water industry, how many more examples must we bring before this House before the political establishment finally accepts that this experiment has completely failed?

Today I ask the Minister for three clear commitments: recovery, compensation and accountability. First, on recovery, will the Minister set out a firm dated timetable for returning the scheme to normal service? That must include clearing overdue cases and urgently prioritising those without income and those with serious welfare, bereavement and ill-health cases. As part of that, the Government must also commit to publishing the number and age of outstanding cases until that has been achieved. The parliamentary caseloads that MPs have received on this issue should also be highlighted.

Secondly, there is compensation. When failure creates debt, higher borrowing costs, mortgage problems or reliance on hardship support, people should not face another battle to regain the position they would have been in had the service worked as it should have. Will the Minister provide a clear, simple and accessible route to compensation for financial loss?

Thirdly, there is accountability. The Government have announced a public interest test under which contracts worth more than £1 million will be assessed for in-house viability before renewal. If ever a service justified considering whether public provision would be more resilient, reliable and accountable, surely this is it. After months of failure under the administration of Capita and every indication that problems will persist, surely we have our answer. Will the Minister commit to bringing the administration of the civil service pension scheme back in-house, to put it back in the service of the people it exists to support?

This is not an attack on the staff working hard to clear the backlog; it is about the system and the political choices that have put us in this position. David should be able to reduce his hours to care for his elderly parents, James should not fear losing his home, Karen should not be left without an income and spending hours chasing her pension, and the other 32 constituents who contacted me should not need their Member of Parliament simply to access the pension service they were promised and have earned. Civil servants have served our country and our communities; they have paid into their pensions and planned their futures in good faith. They have kept their side of the bargain; it is time for the Government and the system for which they are responsible to keep theirs.

I ask the Minister for three things: recovery, compensation and accountability. The administration may have been outsourced, but responsibility cannot be outsourced with it. It is time for the system to do its part for our civil servants.

Order. Everyone can see the nature of my dilemma. I lost a wager with the previous Clerk by suggesting you would not all be here because there was a one-line Whip at 4.30 pm, but you all are. To clarify for Mr Stuart and other Members, I should say that the Doorkeepers have informed me that the Minister was here in plenty of time, but was caught in the mêlée as people left.

I regret to inform all of you that, with the authority of the Chairman of Ways and Means, I am imposing a time limit of one minute on Back-Bench speeches. Even then, I cannot guarantee that everybody will get called, so please do not take interventions.

I wrote to the Cabinet Office in January in response to constituents’ concerns about late payments, dreadful customer service and, in some cases, desperate pleas for pensions to be released. Shortly after, I met Capita representatives; they made assurances that pension arrears would be cleared by the end of April and that overall service levels would be restored by June. Those were hollow words: both targets were missed and everything has got worse. One constituent told me that he had given 43 years of service to the Royal Navy. He retired in October last year and is still waiting for his pension forecast to arrive. That is nearly a whole year.

My case workers have been exhaustively responding to constituents who are attempting to access statements and payments. In January, I wrote to the Cabinet Office but we are still waiting for movement on this issue. I suspect that my caseworkers are doing a better job than those hired by the Government, who have somehow seen an increase in the number of complaints. I do not think that bringing the contract in-house will make a difference—

Order.

I have heard from far too many residents in Gloucester who have devoted their lives to public service only to be unable to access their pensions in retirement. In the short time I have, I want to highlight a specific example of one constituent who sadly lost her husband and was trying to get access to his pension. She had to relentlessly battle Capita during one of the most difficult times in her life. In her first email to me, she said that she felt that Capita were waiting for her to die.

Her husband served our country, first in the Navy and then for 12 years at GCHQ.

In cases like these, widows are being failed by Capita. While suffering immense grief, they face the administrative burden of trying to secure what is rightfully theirs. I am pleased that after support from my office, my constituent has secured a lump sum and is due her husband’s pension this month, but even after my involvement, the communication from Capita has been limited and poor.

I know that the Government are working around the clock to improve the situation, with the taskforce of civil servants being deployed. Progress is being made, and I know that the Minister is determined to build on that. I would be grateful if she could outline the steps that the Government are taking to improve the situation.

Since Capita took over the administration of the civil service pension scheme, about 8,500 retired civil servants have experienced delays or failures in their pension payments. There are many in my constituency of West Dorset—many of them widows or ex-servicepeople—and many of them are having to take out hardship loans. We have seen delays, inaccurate calculations, enormous backlogs and, more recently, a data breach affecting 138 members in which some received other members’ annual benefit statements. The Public Accounts Committee warned in 2025 that Capita was not ready to take on this contract.

I recognise that the Government have introduced a recovery plan, including interest-free hardship loans and additional surge teams, but a hardship loan is not a pension, not compensation and not a substitute for people receiving the money that they are owed after decades of public service. I hope that the Minister will tell us today what the Government intend to do to rectify this.

I stood on a manifesto that promised the biggest wave of insourcing in a generation. This situation is only one of many since the 1980s in which the responsibility of the state has been outsourced to private companies, which have consistently failed to deliver for working people. I will not stop fighting until this scheme is brought back where it belongs.

Will the Minister commit to drawing up plans to bring the scheme in house? Will she also apply pressure on Capita to issue comprehensive finalisation statements for each case? How will the Government hold Capita to account in the meantime? Will the Minister clarify who made the terrible decision to award the Synergy contract? Will she push for a compensation scheme for all affected by Capita’s failures that considers both the stress and the financial loss caused to our much-loved civil servants?

Order. Some Members have left the Chamber, so I am increasing the time limit to one minute and 30 seconds.

My Spelthorne residents were given incorrect quotes months after I intervened and despite my office regularly pressing for updates. Some are still waiting for their initial quote—again, despite my office repeatedly following up. Others were told that their pensions could not be found, despite their furnishing the details several times. Only three of our 17 cases in Spelthorne have been resolved.

Spelthorne residents are not statistics. They are people who paid into their pensions throughout their working lives. They are the newly retired, the medically retired, widows and widowers, who are experiencing serious financial hardship and experiencing difficulties in securing the loans promised by the Government. It is futile for the Government to continue to go over old ground and play the blame game. What residents need and deserve is to receive without any further delay the pensions that they paid into over a long time.

For Capita, our constituents are now paying the price. We are talking about workers like my constituent Simon, who lives in Stanwick. He put in 37 years of public service at HM Courts and Tribunals Service. He gave six months’ notice that he wanted to retire, but Capita simply never processed his application, and his retirement date has now passed. Simon now plans to retire in March 2027, but has no confidence at all that that date will be met. After 37 years of service, he is unable to receive the money that he has earned.

This just shows the absolute madness of outsourcing. This Government promised to deliver the greatest wave of insourcing in a generation, and I agree with the 20,000 PCS members who signed a petition urging them to demonstrate it here. Members of the civil service pension scheme deserve a cleared backlog with every case resolved, deserve without delay the money they are owed, deserve those responsible for failures to be held to account, and deserve a pension scheme back in house, under Government accountability.

I congratulate the hon. Member for Liverpool West Derby (Ian Byrne) on securing the debate.

Like everyone here, I have constituents who, after years of dedicated public service in our armed forces, prisons and vital public services, are now struggling to make ends meet because of failures by Capita. I raised those issues back in April, when the then Minister made a statement on this matter, but sadly it is now like a conveyor belt: just as we get one case resolved, another one appears from a constituent who cannot access the pension they have worked for and earned.

The most important point I want to make today is that behind every delayed pension is a person whose life has been put on hold. One of my constituents is grieving the loss of her husband, who passed away in July. As if that were not already enough, she cannot access his civil service pension. She spoke with Capita last week and was told that her case was “progressing”—exactly the same update as she had a month earlier.

I attended Cabinet Office questions last week, at which the Minister outlined the Government’s insourcing plans and the penalties that Capita is experiencing, but I want her to address two questions today. First, what are the timescales for insourcing? “Plans” do not help our constituents right now. Secondly, what criteria are being applied in relation to penalties for Capita? Constituents need answers and reassurance.

It is a pleasure to serve under your chairship, Dame Siobhain. I thank my hon. Friend the Member for Liverpool West Derby (Ian Byrne) for securing this debate and for focusing so well on the human costs. Many constituents have come to me about this issue. They are living in poverty and misery, having given decades of service to the British people.

This is an absolute scandal. Quite simply, the backlog flows from the repeated, serious failures of Capita, and Capita has very serious questions to answer. I have a great deal of sympathy with those who argue that this should be brought in house, both for the sake of the staff working at Capita who, as my hon. Friend explained so well, are suffering from immense stress, and so that constituents across Britain who have given decades of public service can have confidence that they will be treated properly and be able to access their pensions on time.

I will share with the House one particular case that is representative of many. My constituent, Mrs Gillian Pothecary, lost her husband almost a year ago. She wrote to me in July about her valiant but so far unavailing quest to obtain a civil service widow’s pension. She wrote:

“Throughout this process, I have been given differing information about the status of my claim…More recently, I was told that I was at the top of the list for assessment, only to then be informed that some of my paperwork had become out of date and needed to be resubmitted, causing further delay.”

I was very impressed to get a reply, when I forwarded this on, from someone holding the exalted position of deputy director of civil service and Royal Mail pensions in the Cabinet Office. She said:

“Mrs Pothecary’s…case falls under the commitment to be fully resolved by early September at the absolute latest. Capita has assured me that her case is on their escalation log and has been flagged for priority handling.”

I rang up Gill just before coming into this debate and—you’ve guessed it, Dame Siobhain—she has not yet received her pension. She is now dipping into her savings and working longer hours at the supermarket.

The people affected by this issue have worked hard, done the right thing and put money aside for the future, and of course the consequences when things go wrong are dreadful. One of my constituents has experienced a catalogue of errors lasting more than six months, from a £27,000 mistake about a lump sum to a tax code error that still has not been resolved.

That is just one case among many. People are spending hours on the phone only to be fobbed off, paperwork is going missing, money is taking months to arrive and lives are being ruined. Capita’s response is arbitrary targets that come to little or nothing. Will the Minister say what will happen if Capita continues to set itself targets and then miss them? The Government’s action so far is welcome, and it is entirely right that Capita should be audited. Can we have progress on this, please? Can the Minister also tell me who will pay the interest on any delayed payments?

A pension, of course, is about money, but more than that, when they have tried to sort out this mess with Capita, my constituents have been left feeling that they do not matter—but they matter very much. This is not Capita’s money; it is their money, and every single penny must go where it belongs.

Thank you, Dame Siobhain, and my apologies to the Minister, who was indeed here on time. I have written her a note to apologise.

I am aware of at least 10 people in Beverley and Holderness who are still waiting to receive what is rightfully theirs, as colleagues across the Chamber have so powerfully expressed. Angela from Burstwick gave 37 years to the civil service, most recently at His Majesty’s Land Registry. She retired in May and, four months on, has received neither a quotation nor a payment. She is now living off her savings and struggling to meet her mortgage.

Sally from Beverley has spent nearly a year trying to retire, after almost 40 years of service. Capita wrongly closed her case as a duplicate, lost the documents sent by the company’s HR team and gave her conflicting retirement dates. In August, it admitted that its own notes on her case did not add up.

This case will resonate powerfully with the Minister. John from Withernsea retired in April 2026 after 30 years as, like the Minister, a prison officer—in his case, at HMP Hull and HMP Full Sutton. Five months on, he has received neither a pension quote nor a penny of income, despite his former employer sending Capita the same information three times.

That is three lives and more than 100 years of service, yet none of them can get what they are owed. Ministers knew that the IT was not ready, but it went live anyway. Can the Minister explain why that decision was made?

Time and again this issue is raised in the House, whether at business questions or in questions to Ministers, and we are assured that the situation can and will get better. We are given deadlines and meetings. My constituent Mark’s case was even taken off the tracker, and my office was assured by Capita that the case was solved. Then, last week, we found out that it still had not been resolved and he still did not have the pension he was due.

Barbara had to fight six months for her late husband’s pension. She dealt not only with the grief of losing a husband, but with not being able to get the pension that was owed. Frankly, it is disgraceful that we are treating anyone like this, let alone public servants who have served for many years and deserve a peaceful retirement. Instead, they are having to battle the system to get what they are owed.

What out of pocket expenses will be covered? People are having to pay extra for legal support and to get extra documents reprinted and sourced, as well as getting by day to day. At what point do we draw a line and say, “Enough is enough,” end this contract, and bring it back in house or give it to another supplier that can actually provide what it is paid for?

It is a pleasure to serve under your chairmanship, Dame Siobhain.

I first raised the case of my constituent Sarah Rees in January. A year after retiring, Sarah had not received her civil service pension, and it took my raising it in the Chamber to get any sort of action. Sarah’s husband is now in the same situation and has had to endure Capita’s delays and incompetence. Since first asking for his quote in January, he has chased it 20 times and still not had it.

I am asking for three things. First can the Minister give us further details on the long-term strategy being developed to bring the contract in house? I welcome that move, but we need more detail. Secondly, on behalf of my constituents, I seek assurance on exactly how the UK Government intend to hold Capita to account, as we know that it is not hitting even basic benchmarks. Finally, will the Minister fully consider calls for compensation to reflect the financial cost of these failings for people and their families, many of whom have been without income for nearly a year or more?

Order. I apologise for the hokey-cokey way of chairing. We are back down to a minute for speeches.

It is a pleasure to serve under your chairship, Dame Siobhain. Let me tell Members about two men. The first is Adolfo Hernandez, the chief executive of Capita, who has an annual remuneration, I believe, of £1.6 million. The other is my constituent, a man who gave 33 years of service to the Metropolitan police and, despite giving ample notice of his retirement, did not receive his pension for at least six months. He wanted to fund his daughter through university, but was unable to do so. He took out loans from the police. He then developed cancer and is under treatment at my local hospital. He has finally received a quotation for his pension. This is an utter disgrace and we in this place must surely be able to do something about it. We all came to this place to change things. Surely, this is something that we can change. I look forward to hearing the Minister’s view.

I thank the hon. Member for Liverpool West Derby (Ian Byrne) for securing this debate. I was contacted in February by a constituent who sadly lost her partner in November 2025. She was left caring for two children on one income. When she reached out to access a hardship loan, she was denied. The Government had shut out bereaved families at the time they most needed help. When I asked the Minister how much it would have cost to include them, I did not get an answer.

That has been the theme throughout, for myself and my constituents. I have asked what penalties have been applied to Capita—no answer. Given that much of Capita appears to be nothing more than a rebranding of MyCSP, with the same workforce doing the same job, can the Minister tell me what assurances she can provide that we will not see a repeat of the Capita fiasco? The Cabinet Office is responsible for civil service pensions. Unlike other pension providers that are monitored by the Financial Conduct Authority, this issue is not subject to FCA scrutiny.

It is an understatement to say that Capita’s service in administering civil service pensions is unacceptable. One resident has faced real financial hardship because it took five months and considerable pestering from my office just to receive a quote from Capita. That pension has still not been paid. It does not end there. I have heard from a bereaved and grieving widow, Carolyn. On top of the pain of losing her other half, she has had to fight through a mountain of administration just to receive a widow’s pension.

I have personal experience. I am incredibly proud that my father worked in the civil service and shared a pension with my mother, who passed away in November. MyCSP did not even have my mother’s name spelled correctly on the account, and all progress I had made was lost when Capita took over. I personally experienced the difficult situation that residents in North Somerset have to go through. Surely it is time to act decisively and consider ending Capita’s involvement in the administration.

Saving for a secure retirement is a baseline expectation for the people I represent. For some members of the civil service pension scheme, that expectation has been replaced by unanswered emails, long phone calls and an indefinite wait. That frustration is compounded by the fact that they are not waiting for a favour but for their own money. I will never forget a woman who came to one of my summer coffee mornings. She had worked all her life and to mark her retirement had booked the holiday of a lifetime with her husband. Instead of being able to enjoy that holiday, it was punctured by the anxiety caused by Capita’s incompetence.

There is a power imbalance: retirees know that they are owed and Capita knows there is a problem, but Capita is the only one able to fix it. People are left screaming into a faceless bureaucracy, somewhere inside which their pension is trapped. I know the Minister cares as deeply as I do, and I look forward to hearing of the work she is doing to ensure that we fix this urgently for my constituents.

Capita is causing a real financial and emotional impact on decent, hard-working people across our country. Examples from my constituency include Anne-Marie from Brotton, who served in the Department for Work and Pensions for 40 years and is still waiting for her pension after nine months. Ivan from Nunthorpe retired in 2023 and is still waiting to make his McCloud remedy choice three years later.

Samantha from Marton is trying to secure a death payment following the death of her mother Angela, but has been chasing the bereavement team since February. I met the Minister about these problems recently, but the reality is that Capita is not delivering for long-serving, decent people who spent their lives in public service. I urge the Government to act more quickly to sort it out.

I have a constituent with terminal cancer still waiting after months for their pension. Another constituent has been trying to finalise his deceased mother’s pension for two years. Other constituents have had hardship loans that have now run out. In the words of my caseworker, it is “just dreadful”. Constituents have told me that, when their payments have been delayed, they often have to borrow money simply to make ends meet.

Why should somebody whose pension has been unlawfully or negligently delayed have to borrow money to replace income that is already theirs? I hope Capita will be properly held to account. I look forward to hearing from the Minister about how the Government intend to compensate people who have suffered financial loss, distress or serious inconvenience as a result of these failures.

Capita and MyCSP have failed public servants and ground lives to a halt. Derek tragically lost his wife Julie last year. We found that vital information in relation to Julie’s pension had been lost by Capita, and despite raising this in a previous debate, that case is still unresolved. Despite Capita’s supposed priority to death-in-service cases, it is Derek’s sincere and despairing belief that he will never get what he is entitled to. Tim retired in May. He sent everything he needed to immediately to Capita, which quickly confirmed it had received everything it needed, only to come back to Tim two months later requesting documents it did not initially send him.

I could go on and on—terminally ill people waiting for hours on the phone; prison officers mentally battered and left for months without any updates from Capita. The fact that a single penny has been earned by Capita’s shareholders since it took on the contract is shameful. The fact that that contract was transferred to Capita on the cheap in 2023 is shameful. Minister, enough is enough. Insource this contract.

It is a pleasure to serve under your chairmanship, Dame Siobhain. I completely agree with the concerns that my hon. Friend the Member for Liverpool West Derby (Ian Byrne) raised about Capita’s unacceptable performance. Sadly, despite repeated promises from Capita that it would prioritise, escalate and expedite such cases, too many of my constituents continue to live with the consequences. One constituent has been waiting nearly 11 months for their bereavement case to be resolved. Despite Capita’s assurances that it would clear stock cases involving bereavement by 1 September, that one remains pending.

I am also concerned that Capita appears to be providing constituents and their MPs with incorrect and often conflicting information. In one particular case, my constituent and I contacted Capita separately, and I additionally raised the matter with Ministers in the Cabinet Office. Shockingly, my office received a different answer from the one that Capita provided directly to my constituent, and we both received a different answer from the one given to the Cabinet Office. That is three different answers on one case. The ineptitude is simply staggering, and no one will be surprised to hear that that case is still outstanding.

In the meantime—

Order.

This Capita situation is not acceptable. I have constituents who have served for decades who are now living off their savings because they cannot get a response from Capita, never mind the pension payments that they are owed. Others have had to borrow money from friends and family just to make ends meet, and have no idea when this will be resolved. One person worked for 30 years in the prison service. In September, he received a letter promising that he would receive his pension

“by the end of August”.

Those are not isolated examples. I have received hundreds of emails—about 400 in total. Whatever uniform they wore, and whatever office they worked in, they worked hard, they paid in, and they planned for their retirement on the understanding that the pension they had earned would be there when they needed it most. They have kept their side of the bargain; it is time the system kept its side, too. I ask the Minister to lay out the plans and timescales for getting this resolved for my constituents.

My constituent Sarabjit partially retired last year. Capita wrongly worked out her pension, and over a year later she has still not got the money she is owed. Another constituent, Inderjeet, retired after 39 years in the Met police to spend more time with her parents, who live abroad, but five months later she has still not had a penny and her mum has sadly died since then. This is affecting real people’s lives.

I know the Minister is new to the job, but I congratulate her on how she has already grasped the nettle on this issue. We have had two virtual surgeries offered to us next week for both those cases, but could she confirm the new deadline we should be working to, in order to ensure that Sarabjit and Inderjeet get the money they are due?

Dozens of my constituents have been waiting months on end for their pensions, but I want to raise just one case. My constituent Cally came to see me in February this year. Her mother, Sarah Mitchell, died in August 2025. Despite repeated efforts from my team, Capita still cannot locate her details. Sarah died before getting her pension, and Cally is still waiting for her survivor benefits. I hope the Minister agrees with me—and, it sounds like, everybody in the Chamber—that the shameful cases raised today show that Capita is not fit to deal with this contract. [Interruption.]

I apologise; I did not see you, John. I will reduce the Minister’s time so that you can speak.

Thank you, Dame Siobhain—I am not sure if that is beneficial to the debate, but there you are.

I declare an interest as the chair of the PCS trade union parliamentary group. I first want to thank the Civil Service Pensioners’ Alliance, which worked with the trade union to expose what is going on. I also thank the Minister for her open-door policy. On 9 September, Capita supplied her with information that, let us say, has a passing relationship with the truth.

For the October statement, could we ensure that we have the full publication of the Grant Thornton audit report, so that we can see the hard information? The PCS is willing to work with the Minister on the insourcing strategy. I also ask that we have a full inquiry into how this contract was awarded in the first place, and how Capita has been awarded further contracts despite its successive failures.

I call the Lib Dem spokesperson. You have five minutes.

It is a pleasure to serve under your chairship, Dame Siobhain. I commend the hon. Member for Liverpool West Derby (Ian Byrne) for securing this important debate. We always say that in this Chamber, but we can see from the number of Members who have come here today to represent their constituents that this issue really needed to be debated.

In August, I hosted a surgery in the bucolic surroundings of the Rushfields nursery, at the foot of the south downs near the village of Poynings. A gentleman called Greg Mountain came to see me. I know Greg because before I stood for election in Mid Sussex, he was the Labour candidate there—I believe in 2015 and 2017. I was not sure what he was going to raise with me, but Greg was there in his capacity as a member of the executive committee of the Civil Service Pensioners’ Alliance. He advises former civil servants living in my constituency. Greg described the situation we have heard about this afternoon as a “national scandal”, and he is right.

Let us look at some statistics. As recorded by the Cabinet Office on 20 August this year, annual benefits statements for existing members were still not available. There were 68 retirement cases more than 100 days old, with a further 267 requiring additional information before payment could be made. There were six ill-health retirement cases over 100 days old, with another 12 awaiting information. There were 45 death-in-service cases over 100 days old, and a further 242 requiring more information. Perhaps most troubling of all, there were 1,082 bereavement cases more than 100 days old, with another 779 awaiting third-party information.

These are people who have given decades of their lives to public service. Newly retired civil servants say they are struggling to pay bills and buy food because delays in their pension scheme have left them without an income for months. These repeated failures in pension administration are causing real distress and uncertainty for people who deserve better. The outrage and anger is particularly understandable given that the Public Accounts Committee warned of a clear risk that Capita would not be ready to take over full administration in December 2025.

Will the hon. Lady give way?

I will not, because I have a time limit.

The Committee called on the Cabinet Office to explain how it ensures sufficient staffing and resources, and raised serious concerns about weak contract management and poor oversight. It is now clear that those concerns have come to fruition.

I have five questions for the Minister. First, how did this happen, and when will it end? When Capita bid for this contract, did it properly understand the scale and complexity of the work it was taking on, and did the Cabinet Office undertake sufficient due diligence to satisfy itself that the company had the capability to deliver this vital public service? Has the Cabinet Office put a date in place for getting this right?

Secondly, are teachers going through the same ordeal? I have received very concerning casework from teachers in my constituency who seem to be having similar or the same troubles with their pensions. The idea that the immense stress and potential financial hardship that we have heard has been inflicted on civil servants has been mirrored for teachers is appalling. Can the Minister tell us what guardrails the Government have put in place to ensure that when the teachers’ pension scheme transfers to Tata from Capita, that will not result in similar issues?

Thirdly, the Government must tell us how they intend to put this right. How will they restore the confidence of 1.7 million current and former civil servants who simply want reassurance that their pensions, earned through years of public service, will be administered competently, fairly and with dignity? The Government must outline exactly how they are ensuring that the most vulnerable of those affected are being prioritised.

Fourthly, will the Government commit to inflation-linking payments to all outstanding cases, to make sure that those affected by Capita’s mistakes do not suffer even more for the delays? Fifthly, what assessment have the Government made of the systemic failures in civil service pension administration? What lessons have they learned to ensure that the same thing cannot happen again when similar contracts are awarded in future? These people served this country. They earned their pensions. They should not now have to fight to receive them.

It is a pleasure to serve under your chairmanship, Dame Siobhain, and to take part in this debate. I take the opportunity to formally welcome the Minister to her role. The turnout for the debate shows the strength of feeling of hon. Members of both sides of the House. I join them in expressing my deepest sympathies to the civil servants and families of civil servants who dedicated their lives to public service and who have been left without the pensions they earned throughout that service. Recent updates from the civil service pension recovery plan show that although progress has been made, thousands of families are still waiting for retirement quotes and pension payments. Of particular concern is the number of older cases involving bereavement, death in service and ill health that have yet to be resolved, as highlighted in the most recent updates. I trust that the Minister will use the opportunity of this debate to highlight what further steps the Government are taking to ensure that those cases are dealt with.

An adequate explanation from Ministers for why they allowed Capita’s contract to administer the civil service pension scheme to go ahead in the first place has been entirely absent. I know, and the Minister will no doubt point out, that the contract was signed in November 2023 under the last Government. The last Government agreed to a two-year transition period with clear milestones that Capita was required to meet to take over the administration of the scheme without causing disruption to service.

The mistake that the Government made was trying to transfer a complex system in disarray. Is the danger not that the Government now will take a system that is still in disarray and seek to transfer it again? It must be put right under Capita and then, at that point, a consideration can be made of its being brought back in house, not before.

I could not agree more. It was under this Government’s watch that it became clear that many of the milestones were not being met, and Ministers failed to take the necessary action to ensure a smooth transition and prevent such disruption. That was certainly not through lack of warning, given that both the National Audit Office and the Public Accounts Committee published reports in the weeks and months before Capita was due to take over administration of the scheme highlighting a clear risk that it was not ready to do so. Ministers said they received personal assurances from Capita on its readiness to take over the scheme, and they have not said why they chose to believe those claims despite the findings of the National Audit Office and the Public Accounts Committee.

Will the Minister clarify who in her Department authorised the go/no-go decision in November 2025, clarify what criteria were used to make that decision, and commit to publishing all documents relating to that decision with only necessary commercial redactions?

Ministers have spoken at great length about potentially insourcing the civil service pension scheme in the future, but they appear far less willing to consider using powers that they already have at their disposal under the Procurement Act 2023 to address issues with suppliers.

Does my hon. Friend agree that since the Government have got involved in this situation, the backlog has got worse? Does he think that they should prevent Capita taking on any more Government contracts until this is sorted out?

I could not agree more, and I am about to come to that point. We have all seen our inboxes full of horror stories of individuals who have been caught up in this situation. I therefore ask the Minister specifically to confirm whether the Government will refer Capita to the Debarment Review Service, or does she intend to allow Capita to continue freely bidding for public contracts while the Government take months to complete their review of insourcing?

It is clear that the mishandling of the civil service pension scheme is the result of not only corporate failures on the part of Capita but the Government’s failure to manage the contract effectively. Ministers should reflect on the Government’s shortcomings in regard to that before outsourcing blame elsewhere. However, I am aware that the Minister took a keen interest in this subject from the Back Benches and I will work constructively with her to try to find a resolution to an issue facing many thousands of people up and down the country.

It is absolutely right that, while we try to understand how we got to this point, we must work more closely together to try to resolve it. That is in the interests of the civil servants and their families who have been so deeply impacted by this travesty. I therefore look forward to hearing what plans the Minister has to take this issue forward and resolve it as quickly as possible. I look forward to her 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 want to apologise as I was not in my seat for the start of the speeches; I will endeavour in future Westminster Hall debates to be more bullish in fighting through the crowds to make sure I am here on time.

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, as all Members present have done. I raised this issue both in Westminster Hall and the main Chamber before I became the Minister responsible for it—life comes at you fast. I am absolutely committed and determined to ensure that this issue is dealt with.

I want to thank the constituents who have been affected by this issue. They are public servants who have given so much to our country and our communities. I give a special shout-out to my former colleagues in the Prison Service and at HMP Moorland, because public servants like them have dedicated their working lives to this country and deserve financial security and unwavering dignity in retirement—not corporate failure, not empty promises and not severe administrative failure.

I will do my best to get through as much of my speech as I can in the time I have, but I am happy to speak to any Member after the debate to deal with individual case issues. Subject to the Speaker’s permission, I also hope to come to the House in October to give a full update.

The continued poor experience delivered to the many public servants and their families by Capita, which has been the administrator of the civil service pension scheme since 1 December 2025, is totally abysmal. I have read accounts of the endless delays faced by scheme members, many of whom have written to their local MPs and Ministers, I have heard the concerns raised by hon. Members in the debate, and I have heard the concerns of my constituents in Doncaster Central. I am truly sorry to hear about the worry and distress that has been caused, particularly to those dealing with bereavement and death in service. Resolving this matter is of the utmost urgency for the Government, and we are taking direct action to intervene.

I will answer some of the questions from my hon. Friend the Member for Liverpool West Derby. First, on recovery, Capita has set a commitment to achieve its full service level agreements from the end of this month. I am meeting senior Capita staff later this month to challenge them again and get their assurance on that. On the commitment to redress and compensation, we are committed to ensuring that no member is left financially worse off. All complaints will be handled in line with Pensions Ombudsman standards. There is further work to do on that, and I intend to bring my focus to it, but in the immediate future, I want to make sure that as many scheme members as possible are getting their pension and the money they are owed. Further work will then be done to ensure that people are properly compensated. I will come to insourcing later in my speech.

I will explain the context of this issue and how we got here. The contract was signed in 2023 under the previous Government. On 1 December, the administration of the scheme transferred from MyCSP to Capita. While the core payroll for over 730,000 existing pensioners continued to be paid correctly and on time, following the change of administrator, the process for retiring since December has been fraught with delays, and a large number of public servants and their families have been significantly impacted.

Following that, Capita defaulted on its major recovery commitments, missing its end of April target to clear payment arrears and its end of June milestone to clear the backlog of inherited cases. Following Capita’s failure at the end of June, we mandated the production of a formal contract rectification plan, which was submitted by Capita in July. A remedial adviser from Grant Thornton was appointed at Capita’s expense to test the validity of that plan. They will test whether Capita can realistically deliver what it needs to with the systems it has in place and in the timeframe it has set out. Once Capita reports next month, we will hold it to account for the quality of its planning and execution.

In addition, the Government have appointed a Government internal audit agency to undertake a deep review of the effectiveness of Capita’s operational arrangements between December and July. After I get all that information back and break it down, I will then report again in October. That will allow us to understand how Capita got it so wrong, despite Ministers receiving explicit personal assurances from the chief executive officer. We will hold it accountable for the quality of its delivery.

In evidence given to the Public Accounts Committee and the Public Administration and Constitutional Affairs Committee on 8 July, Capita committed to two further operational milestones: 1 December to clear all remaining backlog and retirement arrears; and 30 September to restore normal operations and standard contractual levels, excluding 600 complex cases. As stated in my ministerial statement on 9 September, Capita has reported that it has met that in five priority areas. I want to be clear that that is Capita’s reporting, not my or the Government’s reporting. I am personally testing that, based on cases that MPs have sent me that have come through my ministerial correspondence. I will be holding Capita executive to account on individual cases next week when I meet them.

I am also working towards setting our own measures of Capita’s success. At the minute, it is setting its own milestones and measurements, and that is not good enough. We are in charge, so we need to tell it what our terms and measurements are, and it needs to work towards that. I am doing a separate piece of work on that.

On transition and go-live, the decision obviously predated my elevation to Minister for this area, but it was based on evidence requested from Capita about capability and readiness in critical delivery areas. By November 2025, assessments indicated that Capita had made significant progress since the PAC hearing in July. It gave assurances via external audit by the National Audit Office, technical security assurance, gateway reviews in the go/no-go discussions in October and November, and weekly assessments of critical cases against specific acceptance criteria.

To support and provide financial security to those impacted, the Government have approved more than £100 million to provide interest-free transitional support loans to public servants. Let me be clear: the Government should not have to financially plug any gaps due to Capita’s failure, but to date it has been necessary to supply more than 4,100 loans.

I turn to Capita’s engagement with Members in this House. The volume of outstanding MPs’ correspondence has grown significantly, and peaked at 2,200 open cases. It has decreased slightly to 1,700, but it is still not good enough. In recognition of the need to do better, my predecessors set up the virtual surgeries system. To date, it has had more than 870 sessions with 260 parliamentary officers, which underlines the scale of the catastrophe we are facing. We will maintain those surgeries until the pension scheme is running smoothly. It feels like that could be a while, but we will not withdraw them.

I am personally committed to continuing to work with the unions. I have already met the PCS union, which represents Capita employees and scheme members, and other unions, including the POA and the FDA. I met the Civil Service Pensioners’ Alliance this week to ensure that it is involved and that its views are heard throughout this process.

I am using all commercial levers to hold Capita to account. We have held nearly £10 million in contractual payments for undelivered milestones. We will pay only for what has been successfully delivered, and nothing more. We have a Capita-funded remediation adviser, and we will be hearing from them very soon. We have also deployed auditors to Capita to get a full understanding of its failure, and we will be recovering all costs from it, including to pay for the 140 surge staff that the civil service has provided.

Core operations are currently being propped up by the 140 surge staff, and we will put more in if required. The surge team will remain in full service until restoration is completed. We will not permit Capita to reduce its own headcount until performance has improved.

The contract awarded by DWP followed a separate rigorous process; it was not done via the Cabinet Office. I have expressed my own views on that in this House before, so they are on the record. I think there is further work to be done to look at how we can hold Capita and similar companies to account when they fail in these areas.

It has been nine months since Capita took over the new contract. The Government are very clear that members of the civil service pension scheme and their families deserve better. If any Members who have raised personal cases today have not already done so, I ask that they get in touch with me so that I can personally escalate them.

I will hopefully come back to the House in October with a better update and more information. The Labour Government stood on a manifesto pledge to have the biggest wave of insourcing in a generation. I am personally committed to that. I have said in this House before that I think that is a priority for this scheme, but we can do that only if it is done in the interests of the members. There must be no disruption, so we have to do it in the smoothest and quickest way.

I want Capita, not the taxpayer, to pay for its mistakes. It does not get to just walk away and do nothing about it. It needs to pay for this and get everyone their pensions, and then we will look at what needs to be done in terms of the long-term viability of the scheme. I am committed to doing that. I assure all hon. Members that this is absolutely a Government priority. It is also a personal priority for me, and I feel I have demonstrated that in recent months when I have raised it. We will not rest until it is sorted.

I am conscious of time—I have about 15 seconds left. The Government will not accept further caveats or moving targets. We will not accept continued poor delivery for current and former civil servants, who deserve better in their retirement. I thank everyone for showing the strength of feeling today. More will come in October.