Civil Service Pension Scheme: Administration

Debate between Anna Turley and Anna Dixon

Wednesday 4th February 2026 Westminster Hall

[Anna Turley]

I appreciate the hon. Gentleman’s flagging that point, and I was coming to that. I have taken the quite unusual step of bringing a print-out for colleagues, which will be available at the end of the debate and will be shared with colleagues more widely. It has an email address on it. I am keen that hon. Members bring their cases directly to us. Of course, we are addressing the wider issues, but it is a cause of great concern to me that, where cases are raised with Members of Parliament, they should be brought straight to our attention.

The McCloud pension sector remedy work was raised. We know how important it is for the many members awaiting an update. We have agreed a separately resourced project to deliver the remedy with Capita. Many of these cases are very complex, and we hope the majority will be issued by April ’27. We are working with the Pensions Regulator, and we will provide progress updates to the members affected and to MPs.

The new contract with Capita includes a number of key performance indicators, which colleagues have rightly raised, with financial penalties to be applied where they are not achieved. We reserve all commercial rights at present. We have already withheld millions of pounds of payments for failure to meet transitional milestones. We continue to contractually monitor service level key performance indicators linked to payments, and we have refused to waive service levels, ensuring that Capita remains contractually liable for performance.

My right hon. Friend the Member for Hayes and Harlington (John McDonnell) asked whether there was a cause for termination. There is an option to terminate in any contract of this kind. These are complex and commercial requirements, and terminating the contract and moving to another provider would mean another massive upheaval of data and everything else. I am sure colleagues share my view that the priority right now is to resolve people’s immediate concerns and issues, make sure people get their money and undertake a review of exactly what happened. However, everything is on the table. As I said, we will do a full review of these contracts, but our priority is to get people the support that they deserve. It has now been two months since Capita took on the new contract, and we are very clear that members of the pension scheme deserve so much better. Our focus is on taking fast action to resolve the most critical issues for impacted individuals while simultaneously ensuring a detailed recovery plan that brings the commercial contract back within service level agreements as quickly as possible.

I want to reassure every member of the pension scheme that their pension is safe and their data is secure. We are working, and will continue to work, tirelessly with Capita to support the recovery programme until such time as we are wholly satisfied that the service is fully recovered. We are committed to ensuring that every member is treated fairly and with respect, and that no one suffers a permanent financial loss due to these administrative failures. We are holding Capita to account and are going to kick backside, as the hon. Member for Strangford (Jim Shannon) said. We are making sure that members are at the heart of the recovery plan, and we will use every commercial lever at our disposal to ensure that Capita delivers effectively.

I thank all hon. Members who brought the voices of their constituents to the Chamber today. I have brought a handout for colleagues, and I urge anyone with constituency cases to raise them with us. We will do our best to accelerate them, but I am conscious that we have to resolve this matter not just for those who are brought to our attention but for absolutely everyone. We will hold further drop-ins to assist hon. Members and their teams, and we are doing our absolute best to make sure people get their money as quickly as possible. The House has my word, and that of my right hon. Friend the Minister for the Cabinet Office that we will not rest until the service is stabilised and our civil servants receive the support that they have earned after so many years of dedicated service—for which, once again, we thank them.

[Anna Dixon]

On a point of order, Ms Lewell. I would like to apologise. I need to declare an interest: I also hold a civil service pension and would like to put that on the record.