Civil Service Pensions: Capita

Baroness Finn Excerpts

Thursday 5th February 2026 Lords Chamber

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

With regard to Fujitsu, I think the noble Baroness will be aware that there are ongoing issues that relate to the Horizon scandal. With regard to Capita, there are two companies at play here: the company and whether it fulfilled its responsibilities for the previous provider and what Capita actually inherited, which was double the backlog that it was expecting. So there are more complex issues at play here and I am sure that, in the coming months, we will be discussing this in great detail in your Lordships’ House.

[Baroness Finn (Con)]

My Lords, whatever the failings of the contractor, the agreement will contain options for the contractee, but those potential remedies are only effective if the contracting authority itself is on the case relentlessly. Can the Minister tell the House what concrete steps the Civil Service has taken over the years to improve the quality of its contract management? No well-run business would tolerate a contractor underperforming in this way, so why should the Government allow such behaviour?

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

I want to be very clear that this was a contract signed by the noble Baroness’s Government in 2023, and we are now managing the contract that they signed. As regards where we are in holding Capita to account, we have withheld £9.6 million in transition payments up until this point, from a contract value over seven years of £285 million. That is a significant withhold at this point. We are making sure that Capita is meeting its KPIs and we are meeting it every day as part of the recovery taskforce. However, the noble Baroness is absolutely right that a great number of public procurement challenges relate to the original contract and all this needs to be looked at in the round.