Civil Service Pension Scheme

Debate between Baroness Anderson of Stoke-on-Trent and Lord Bassam of Brighton

Tuesday 30th June 2026 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

The noble Lord is right that this is affecting people’s day-to-day existence—we have seen in the news coverage at the weekend quite how heartbreaking that has been. We are working on a case-by-case basis. Some of the most harrowing cases have been raised with colleagues at the other end of the building and we are working with MPs, including by having virtual surgeries every day since 29 May, to help them support their constituents in this space.

I want to raise two specifics that it is important for your Lordships to be aware of. First, we have doubled the amount available in transitional support loans—it was £10,000 last time I was at the Dispatch Box on this issue; it is now £20,000 that is available to everybody who is not yet accessing their pension. I urge noble Lords, if they know people in this space, to let members of the scheme know that they are to contact the department they worked for and they can access £20,000 in a loan. We have also introduced a process to pay interest in respect of pensions payable by Capita from 1 December 2025 where full benefits are paid more than one month after retirement. The interest rates applied will be based on Bank of England base rates plus 1% for the period of delay between retirement and payment. However, the noble Lord is right: we need to do this as quickly as possible and get people their money.

[Lord Bassam of Brighton (Lab)]

My Lords, I declare an interest in that my wife is a beneficiary of the Civil Service Pension Scheme. She was entitled to her first payment on 1 October last year and she received it on 3 June this year. We can afford to take that hit, but thousands of Civil Service pensioners cannot. What assurances are we going to get, first, that people are compensated for the loss of their pension over a period; secondly, that there will be a full inquiry into the way in which the scheme was operated by Capita; and, thirdly, that Capita is properly held to account in terms of bidding for contracts in future.

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank my noble friend, and I am truly sorry for the experiences that his wife has had; I am pleased that she has now received her pension. My noble friend’s factual story is unfortunately all too familiar given recent events. He is absolutely right. The reality is that the Government are trying to fix what has clearly been broken while establishing the facts. We are trying to prioritise the most vulnerable and put in support processes. Then, it is fair to say, we will establish and determine exactly what went wrong and where, making sure this can never happen again.