Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, with reference to the evidence given by Paymaster General at the Public Administration and Constitutional Affairs Committee session on 28 January 2026, whether there is any provision in the contract awarded to Capita to administer the civil service pension scheme to allow the recoup of costs from that company for (a) loans and (b) compensation paid to individuals impacted by the delays to that scheme.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
Capita has made lump sum payments to 8,979 members, the majority of whom have retired but are not yet receiving their pension, and are on track to bring these members into regular pension payments by the end of April.
To provide immediate financial support to those who may need it, arrangements are in place for interest-free bridging loans typically up to £5,000 or £10,000 in exceptional cases to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members. The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time.
It should be noted that these loans are provided by the employer and not the Cabinet Office. There is no provision in the contract for cost recovery from Capita as the loan will be fully repaid directly by the member on receipt of their pension payment.
Interest will be paid on delayed benefits to avoid financial loss by members. In addition, the existing statutory complaints process evaluates claims for financial losses, as well as distress and inconvenience caused, on a case-by-case basis to determine whether compensation is due. This ensures that any retiree who provides evidence of extra costs, such as bank penalties or interest charges caused by the delay, is fairly assessed. This process is run in accordance with the standards set by the Pensions Ombudsman.
Whilst there is no contractual mechanism to specifically recover compensation costs under consideration, there are significant and robust contractual performance indicators built into the contract and these include financial penalties for underperformance.
Furthermore, Capita remains subject to all SLAs within the contract. We are applying the full mechanism of service credits for performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery.
The latest position of the Civil Service Pension Recovery Plan Update is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates
Asked by: Mike Wood (Conservative - Kingswinford and South Staffordshire)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, further to the answer by Baroness Anderson of Stoke-on-Trent of 9 April 2026, to Question HL16074, on Prime Minister: USA, whether the Prime Minister was seated when viewing the presentation about Palantir’s work at the meeting in Washington, and whether Lord Mandelson was present with him at that time, and whether the Prime Minister asked questions about the work of Palantir further to the presentation.
Answered by Nick Thomas-Symonds - Paymaster General and Minister for the Cabinet Office
The visit was part of the Prime Minister's trip to Washington. During this visit the Prime Minister listened to a short presentation about Palantir’s work, followed by a tour of the premises and an introduction to members of staff.
Any contracts for any firm go through the usual rigorous departmental processes and their decision makers.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, who first suggested to the Prime Minister that Peter Mandelson should be appointed as Ambassador to the United States.
Answered by Nick Thomas-Symonds - Paymaster General and Minister for the Cabinet Office
I refer the Hon Member to the Government's statement and release of information on 11th March, providing an update on the response to the Humble Address. The Government is working to ensure that Parliament’s instruction is met with the urgency and transparency that it deserves.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the adequacy of Capita's compliance with their contract to administer the Civil Service Pension Scheme.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
Capita prioritised the most urgent cases and by the end of February, all death in service cases were either settled or progressed to the final stage or awaiting a member response. The same position was reached for ill health retirement applications by mid-March.
Capita has made lump sum payments to 8,747 members, the majority of whom have retired but are not yet receiving their pension, and are on track to bring these members into regular pension payments by the end of April.
To provide immediate financial support to those who may need it, arrangements are in place for interest-free bridging loans typically up to £5,000 or £10,000 in exceptional cases to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members. The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time
While the current focus remains on stabilising the service through the intensive recovery plan, the Cabinet Office considers all options for future contracts, including in-house administration. Any future procurement exercise will continue to use all commercial levers and be conducted in accordance with the requirements of the Procurement Act 2023.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
The latest position of the Civil Service Pension Recovery Plan Update is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates
Asked by: Calum Miller (Liberal Democrat - Bicester and Woodstock)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, which Government departments and agencies may apply mitigating or risk management measures following an assessment by United Kingdom Security Vetting of (a) clearance approved with risk management, and (b) clearance denied or withdrawn.
Answered by Dan Jarvis - Minister of State (Cabinet Office)
It has not proved possible to respond to the Hon Member in the time available before Prorogation.
Asked by: Anna Sabine (Liberal Democrat - Frome and East Somerset)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what key performance indicators and service standards apply to Capita’s administration of the Civil Service Pension Scheme; how frequently performance is reviewed by the Department; and whether the Department will publish regular statistics on (a) backlog volumes, (b) average processing times, and (c) the number of cases involving delayed pension payments.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already been applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme. We have implemented regular technical stand-ups between Cabinet Office experts and Capita administrators to monitor recovery velocity. Ministers are also regularly updated on the situation.
Capita prioritised the most urgent cases and by the end of February, all death in service cases were either settled or progressed to the final stage or awaiting a member response. The same position was reached for ill health retirement applications by mid-March.
Capita has made lump sum payments to 8,979 members, the majority of whom have retired but are not yet receiving their pension, and are on track to bring these members into regular pension payments by the end of April.
To provide immediate financial support to those who may need it, including those who have been dismissed with compensation, arrangements are in place for interest-free bridging loans typically up to £5,000 or £10,000 in exceptional cases to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members. The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time.
The latest position of the Civil Service Pension Recovery Plan Update is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates, although this is only for the recovery period, and can be discontinued at any time. There are currently no other plans to publish regular statistics on Capita’s performance.
Asked by: Baroness Coffey (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government whether civil servants in the Cabinet Office have been allowed or instructed to continue working on the Terminally Ill Adults (End of Life) Bill when this parliamentary session ends.
Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)
As it is no longer possible for the Terminally Ill Adults (End of Life) Bill to pass, Cabinet Office civil servants will not continue working on it, beyond minor administrative tasks such as preparing responses to Parliamentary Questions.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, if he will make an assessment of the potential merits of insourcing the Civil Service Pension Scheme administration.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
Capita prioritised the most urgent cases and by the end of February, all death in service cases were either settled or progressed to the final stage or awaiting a member response. The same position was reached for ill health retirement applications by mid-March.
Capita has made lump sum payments to 8,747 members, the majority of whom have retired but are not yet receiving their pension, and are on track to bring these members into regular pension payments by the end of April.
To provide immediate financial support to those who may need it, arrangements are in place for interest-free bridging loans typically up to £5,000 or £10,000 in exceptional cases to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members. The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time
While the current focus remains on stabilising the service through the intensive recovery plan, the Cabinet Office considers all options for future contracts, including in-house administration. Any future procurement exercise will continue to use all commercial levers and be conducted in accordance with the requirements of the Procurement Act 2023.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
The latest position of the Civil Service Pension Recovery Plan Update is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, if he will set out if a Civil Service Pension Scheme recipient is liable for the repayment of overpayments, including where the the recipient has queried the payment with the scheme administrator, and is repeatedly advised by the scheme administrator that the level of the payment is correct.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The government has a duty to recover overpaid public money to ensure the scheme remains fair and sustainable for all taxpayers. The scheme follows the HM Treasury guidance on “Managing Public Money” which requires the scheme, where possible, to recover any money that a member is not entitled to.
The Civil Service Pension Scheme pays out 732,000 pensions per month. Any potential recovery is carefully considered, including the cost effectiveness of doing so (e.g. the relative costs of recovering very small amounts). Members have the opportunity to submit evidence should they believe that either recovery should not take place or where they might require a longer repayment plan.
We recognise that being asked to repay funds can be stressful. To manage the impact on retired civil servants, the scheme administrator works individually with those affected to create manageable recovery plans. These plans focus on the member's specific ability to pay, often spreading repayments over a long period to ensure that no undue financial hardship is caused.
Asked by: Tony Vaughan (Labour - Folkestone and Hythe)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, if he will provide an update on the status of the Royal Mail Statutory Scheme Pension deficit.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The administration of the Royal Mail Statutory Pension Scheme (RMSPS) is the responsibility of the Cabinet Office.
The RMSPS was created in April 2012 when the UK government assumed responsibility for the historic liabilities (accrued before 2012) of the Royal Mail Pension Plan (RMPP).
The scheme is closed to new members and further benefit accrual. It will continue to operate until all members and their beneficiaries have received their entitlements. The scheme holds no investment assets. All liabilities are met by annual parliamentary votes for funding.
The RMSPS’ deficit at 31 March 2025 is £28.2 billion.
This information can be found in the annual report and accounts:
https://www.gov.uk/government/publications/royal-mail-statutory-pension-scheme-2024-2025
It should be noted that on 22 April 2026, the Government announced the termination of the new Royal Mail Statutory Pension Scheme (RMSPS) contract with Capita. This decision was taken following Capita’s failure to meet critical transition milestones and IT automation requirements over an 18-month planning period. To ensure no member is detrimentally impacted, service delivery will continue under the existing contract while the Government assesses a new delivery model.