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Civil Servants: Workplace Pensions

Answer

The Cabinet Office awarded Capita the contract to administer the Civil Service Pension Scheme in November 2023 under the previous government. The current delays facing scheme members are entirely unacceptable, and this Government has taken firm action to resolve them through a clear recovery plan with strict delivery milestones. We have deployed additional resources to expedite priority cases, ensuring that serving and former staff receive the high standard of service they deserve. Regular progress updates remain available to members via the pension portal and Gov.uk.

Capita is under a firm mandate to restore full service delivery to standard contractual levels by the end of June 2026. We are actively exploring the use of all available commercial and contractual levers and continue to withhold milestone payments for missed transition deliverables. All options remain on the table if they fail to meet the June deadline.

Capita were initially instructed to prioritise and clear the most urgent cases such as Death in Service and Ill-Health during February and March. While Capita previously assured us that performance standards for Death in Service and Ill-Health were being met by mid-March, recent information continues to demonstrate unacceptable delays in some ill-health retirement and death-in-service cases. We have urgently escalated this to Capita, who are actively investigating the underlying data and reasons for these continued delays.

As of 14 June, Ill-Health numbers outstanding are 431, of which 361 have outstanding data or information requirements before processing can be completed. In respect of Death in Service, numbers outstanding are 605, of which 574 have outstanding data or information requirements before processing can be completed.

Around 25,000 members currently await pension quotations from Capita, including outstanding historical cases left unprocessed by the previous administrator. Whilst we have mandated that Capita restore service levels by the end of June 2026, putting accepted quotes into payment requires sequential administrative steps, meaning the first actual payments will commence around late August or September.

Capita has issued lump sum payments to 16,776 retired members awaiting their regular pensions, whilst the scheme continues to pay approximately 730,000 existing pensioners on time. To alleviate immediate hardship, employers have issued £14.2 million in Transitional Support Loans to 2,612 members, alongside interest-free bridging loans ranging from £5,000 to £20,000. Members will fully repay these bridging loans upon receipt of their formal pension payments.

The scheme will automatically pay interest on delayed benefits to protect members from financial loss. The statutory complaints process evaluates claims for financial loss, distress, and inconvenience on a case-by-case basis and is operated in strict accordance with the standards set by the Pensions Ombudsman.

Secondary information

Type

Written question

Reference

10541

Session

2026-27

Grouped for answer

Yes

Subjects

Civil servants Workplace pensions

Contains statistics

Yes

Link

View this Written question on www.parliament.uk