Civil Service Pensions

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

Monday 13th July 2026 Lords Chamber

[Lord Davies of Brixton (Lab)]

I thank my noble friend for the Statement. As she knows, I have been asking questions on this issue for most of this year, so I welcome the attention it is now receiving from the ministerial team and the work they are doing. Of course, the issue of outsourcing and the role of Capita will have to be dealt with, but I am sure my noble friend agrees that the priority now is to get the payments to the people who need them.

I attended the Statement in the House of Commons and listened to MPs repeating stories of the problems faced by the recipients, and I went to the Joint Committee meeting for as long as I could bear it. We all know that there are real human problems here. Of course, it is good that interest is being paid on late payments and that loans are being made. The interest rate is Bank of England plus 1%, but that is the rate paid when the Government pay people money. When the Government claim money from people, they charge a higher rate of interest. My view is that, in these circumstances, the higher rate of interest should be payable by Capita. Perhaps my noble friend could look at that matter and reconsider it.

The more important thing is that, in the Commons, the Minister said in reply to a question that

“members will have the opportunity to ask for other losses to be covered as part of the complaints process”.—[Official Report, Commons, 6/7/26; col. 66.]

We are beyond that stage now. These people deserve compensation for the mental stress and anguish that they have suffered, and we should expect Capita to give them cash compensation for the problems it created.

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

I thank my noble friend for all his work to raise this and to work so constructively with my colleagues here and at the other end. On the specifics, I heard what he said about the interest payment—that may be a little above my pay grade, but I will raise it with colleagues. I very much appreciate my noble friend’s questions about compensation, but he will appreciate that we are still in the middle of trying to stabilise the pension scheme. I genuinely did not think I would be here saying that; I had hoped that, by this point, we would be well beyond that and Capita would have met its milestone deadlines, but it has not. There are still 429 people waiting on ill health retirement cases, 131 of whom have been waiting for two months, and 618 outstanding death in service cases, with 237 waiting for more than four months, as well as the harrowing stories that we have heard. We need to fix that and then look at what comes next.

Civil Service Pension Scheme

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

Tuesday 30th June 2026 Lords Chamber

[Lord Davies of Brixton]

To ask his Majesty’s Government what further steps they are taking to resolve difficulties being experienced with the administration of the Civil Service Pension Scheme, in particular the failure to pay new pensioners.

[The Parliamentary Secretary, Cabinet Office (Baroness Anderson of Stoke-on-Trent) (Lab)]

My Lords, midnight tonight marks the deadline by which Capita promised a complete return to normal contractual service levels. We will hold Capita’s performance against this important milestone. The Minister for the Cabinet Office intends to provide a comprehensive update in the coming days, once we have fully evaluated the data. We have been consistently clear that we will not hesitate to take firm action for continued underperformance. I will endeavour to repeat any Statement in your Lordships’ House, subject to agreement by the usual channels.

[Lord Davies of Brixton (Lab)]

I thank my noble friend the Minister for her reply. The issue is getting a return to normal service standards, which was hoped to be achieved by June—by today—but clearly it simply has not happened. Many new pensioners are still losing their earnings income and not receiving their pension, leaving them in poverty. It is clearly an important and urgent matter. It is time to reconsider the contractual arrangements, but I hope my noble friend will agree that the important issue now is urgent action to help those facing poverty.

Civil Service Pensions: Capita

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

Thursday 5th February 2026 Lords Chamber

[Lord Davies of Brixton]

To ask His Majesty’s Government what actions they are taking in light of recent reports of problems arising from the transfer of Civil Service Pensions administration to Capita.

[Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)]

My Lords, the service being experienced by some members of the Civil Service Pension Scheme is totally unacceptable, and I apologise for the distress caused to members. We have established a recovery taskforce led by HMRC’s Second Permanent Secretary and have deployed a 150-person government surge team to help to support recovery of this service. Interest-free bridging loans of £5,000, and up to £10,000 exceptionally, are available for those in hardship. We are holding Capita to account through rigorous performance indicators and financial penalties.

[Lord Davies of Brixton (Lab)]

I thank my noble friend for her Answer and I am pleased to hear that the Government are seized of the seriousness of the situation. I hope my noble friend has had the opportunity to read the Westminster Hall debate yesterday, when MP after MP, speaking on behalf of their constituents, described the extreme circumstances that they were facing, from the bereaved not receiving death benefits to new pensioners having to wait months for their benefits. Obviously, the priority must be to get benefits to members. However, does my noble friend agree with me that perhaps the answer lies in the Labour Party’s commitment to bring about

“the biggest wave of insourcing of public services for a generation”?

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

My Lords, it might be helpful if I lay out what the Government are doing. I know that many Members of your Lordships’ House may have been contacted for details, not least because they may be members of this scheme. If there are specific concerns or cases that people have raised with Members of your Lordships’ House, I have sought assurances that we will have the same access to the services being provided to MPs for casework in this instance and can share details with noble Lords. As regards the contract and the issue of insourcing, this contract was signed in November 2023 and came into place last year. While there may be questions about insourcing and other contracts, that simply is not going to be able to be done with this contract.

Pensions: Low-income and Self-employed Workers

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

Wednesday 23rd July 2025 Lords Chamber

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

It is a delight to stand here and enjoy cross-party support for a new provision, and I thank the noble Viscount. On his point about the level of employer contribution, the Government have been clear that there will be no increase in the current rate in this Parliament, but the noble Viscount makes a genuine point about how we make sure that people have enough money in retirement. That is why we have established a new Pensions Commission to look at these issues in the round. The noble Viscount states that 18 months is a long time, but the last Pensions Commission took five years. We are talking about matters that will have an impact for decades to come, and so we need to make sure we have the right steps in the right place at the right time. Auto-enrolment was an incredibly important step that has nearly doubled the number of people saving. No pressure on my noble friend Lady Drake, but she now has a significant job to do to make sure we are fit for the future, so that future generations, including my own, have the right level of pension savings.

[Lord Davies of Brixton (Lab)]

My Lords, I too welcome the commission, chaired by my noble friend Lady Drake, and the timetable; a two-year period for something of this importance is right. It gives the possibility of legislation in the current Parliament, so perhaps I will be here to take part in it. Given the timetable and the wide terms of reference, can my noble friend give an assurance that the Government will not be making any short-term changes that might pre-empt the decisions of the commission? The triple lock is the most obvious example, but others include tax relief on member contributions.

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

I thank my noble friend for his support. I reassure all noble Lords that this Government and our party have zero plans to change anything about the triple lock in this Parliament, which cannot be said of all political parties, unfortunately. With the Pensions Commission, we have brought together national experts to make sure that we have a plan in place going forward, and of course we will not pre-empt the decisions it is going to make. We will have ongoing opportunities to discuss these issues when the Pension Schemes Bill is before noble Lords later in this Session.

Universal Credit Bill

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

2nd reading & Committee negatived & 3rd reading
Tuesday 22nd July 2025 Lords Chamber

[Lord Davies of Brixton (Lab)]

If I may, I will speak briefly in the gap, principally just to—

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

My noble friend has not given notice.

[Lord Davies of Brixton (Lab)]

Okay. I just wanted to say thank you to my noble friend Lady Bryan.

Women’s State Pension Age Communication: PHSO Report

Debate between Lord Davies of Brixton and Baroness Anderson of Stoke-on-Trent

Tuesday 17th December 2024 Lords Chamber

[Lord Davies of Brixton (Lab)]

My Lords, could I—

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

I apologise to the noble Lord, but he was not present at the start of the Statement, so he cannot participate.