Civil Service Pension Scheme

Debate between Alison Bennett and Graham Stuart

Tuesday 15th September 2026 Westminster Hall

[Alison Bennett (Mid Sussex) (LD)]

It is a pleasure to serve under your chairship, Dame Siobhain. I commend the hon. Member for Liverpool West Derby (Ian Byrne) for securing this important debate. We always say that in this Chamber, but we can see from the number of Members who have come here today to represent their constituents that this issue really needed to be debated.

In August, I hosted a surgery in the bucolic surroundings of the Rushfields nursery, at the foot of the south downs near the village of Poynings. A gentleman called Greg Mountain came to see me. I know Greg because before I stood for election in Mid Sussex, he was the Labour candidate there—I believe in 2015 and 2017. I was not sure what he was going to raise with me, but Greg was there in his capacity as a member of the executive committee of the Civil Service Pensioners’ Alliance. He advises former civil servants living in my constituency. Greg described the situation we have heard about this afternoon as a “national scandal”, and he is right.

Let us look at some statistics. As recorded by the Cabinet Office on 20 August this year, annual benefits statements for existing members were still not available. There were 68 retirement cases more than 100 days old, with a further 267 requiring additional information before payment could be made. There were six ill-health retirement cases over 100 days old, with another 12 awaiting information. There were 45 death-in-service cases over 100 days old, and a further 242 requiring more information. Perhaps most troubling of all, there were 1,082 bereavement cases more than 100 days old, with another 779 awaiting third-party information.

These are people who have given decades of their lives to public service. Newly retired civil servants say they are struggling to pay bills and buy food because delays in their pension scheme have left them without an income for months. These repeated failures in pension administration are causing real distress and uncertainty for people who deserve better. The outrage and anger is particularly understandable given that the Public Accounts Committee warned of a clear risk that Capita would not be ready to take over full administration in December 2025.

[Graham Stuart]

Will the hon. Lady give way?

[Alison Bennett]

I will not, because I have a time limit.

The Committee called on the Cabinet Office to explain how it ensures sufficient staffing and resources, and raised serious concerns about weak contract management and poor oversight. It is now clear that those concerns have come to fruition.

I have five questions for the Minister. First, how did this happen, and when will it end? When Capita bid for this contract, did it properly understand the scale and complexity of the work it was taking on, and did the Cabinet Office undertake sufficient due diligence to satisfy itself that the company had the capability to deliver this vital public service? Has the Cabinet Office put a date in place for getting this right?

Secondly, are teachers going through the same ordeal? I have received very concerning casework from teachers in my constituency who seem to be having similar or the same troubles with their pensions. The idea that the immense stress and potential financial hardship that we have heard has been inflicted on civil servants has been mirrored for teachers is appalling. Can the Minister tell us what guardrails the Government have put in place to ensure that when the teachers’ pension scheme transfers to Tata from Capita, that will not result in similar issues?

Thirdly, the Government must tell us how they intend to put this right. How will they restore the confidence of 1.7 million current and former civil servants who simply want reassurance that their pensions, earned through years of public service, will be administered competently, fairly and with dignity? The Government must outline exactly how they are ensuring that the most vulnerable of those affected are being prioritised.

Fourthly, will the Government commit to inflation-linking payments to all outstanding cases, to make sure that those affected by Capita’s mistakes do not suffer even more for the delays? Fifthly, what assessment have the Government made of the systemic failures in civil service pension administration? What lessons have they learned to ensure that the same thing cannot happen again when similar contracts are awarded in future? These people served this country. They earned their pensions. They should not now have to fight to receive them.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Alison Bennett and Graham Stuart

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Alison Bennett (Mid Sussex) (LD)]

On Saturday evening, I was lucky to attend Sussex Chorus’s performance of Handel’s “Messiah” at St Andrew’s church in Burgess Hill. There was a collection at the end for the St Peter and St James hospice, which looks after many people in Mid Sussex. As I put my donation in the bucket, the lady holding the bucket thanked me, and she told me that her husband had spent his last days at St Peter and St James. When she realised that I was the local MP, she grasped my hand tightly, and said, “You have to do something about NICs.” I said that I had been trying to, and had been raising the matter in the Houses of Parliament, but having not been heard so far, I will raise it again today.

Our hospices and social care providers do hugely difficult, often invisible work. They look after the weak, the vulnerable and the dying, but these organisations are themselves even more vulnerable than they were as a result of the Government’s proposed changes to employer national insurance contributions, announced in the Budget. That jobs tax jeopardises the quality and reach of the services that will be available in my constituency and across the country. The children’s hospice charity Together for Short Lives estimates that the rise from 13.8% to 15% in April 2025 that was announced in the Budget will increase costs for children’s hospices, which provide lifeline care to seriously ill children, by nearly £5 million annually. Combined with inflation, falling local NHS and council funding, and uncertainty around the NHS children’s hospice grant, this policy risks reducing or even closing essential services. In the social care sector, MHA, which supports more than 17,000 older people across 80 care homes, 59 retirement communities, and 43 community based hubs, estimates that it will face an additional £4.6 million in costs in the first year alone.

[Graham Stuart]

Will the hon. Lady give way?

[Alison Bennett]

I would like to make progress. Around 18,000 private social care providers operate in the UK. We must help them to help those in need, and we cannot afford to put up more barriers for them. How can we expect those providers to survive if we impose higher taxes on them? This is not making the most of an opportunity for long-term positive change; I am sad to say that it is squandering it.

The Government could have found better ways to raise the necessary funds. They could have reversed tax cuts for big banks, increased digital services taxes, or even reformed capital gains tax to ensure that the wealthiest pay their fair share. My Liberal Democrat colleagues and I have repeatedly urged the Government to exempt social care providers and hospices from the tax rise, and I do so once again today. Let us do right by those who work tirelessly to support and protect our most vulnerable, and in doing so, let us build a healthcare system fit for the future.