Civil Service Pension Scheme: Administration

Cameron Thomas Excerpts

Wednesday 4th February 2026 Westminster Hall

[Cameron Thomas (Tewkesbury) (LD)]

It is an honour to serve under your chairship, Ms Lewell. All credit to the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) for securing this important debate. She can so often be found calling out injustice. As is clearly the case for many MPs, recent weeks have brought forth an abundance of correspondence from constituents frustrated by unsatisfactory communication from Capita, with the anxiety borne of missed pension payments. Many of those who have experienced missed pension payments have given years or even decades of their lives to public service across key Departments, not least the Ministry of Defence and Crown Prosecution Service.

One such constituent of mine expressed that she had completed her MyCSP application in July 2025, but had then received no further communication until discovering in November that the portal had closed. Having then created a Capita account in December, she has sent three messages via the portal and attempted to call the hotline four times—to date, all without a response. Another is a retired Ministry of Defence civil servant who had worked at RAF Innsworth, now Imjin barracks, home to the Joint Casualty and Compassionate Centre. She told me that she submitted all her documentation as required, but at the end of November all telephone lines were ceased, her emails bounced back undelivered and the portal was closed. She said that her experience only worsened when Capita reopened the portal, which was apparently untested and did not allow her to log in at all. The absence of meaningful communication significantly compounded my constituent’s stress. Those affected still have no timeline for seeing their pensions paid.

Capita’s initial explanation—that these symptoms were merely teething troubles—should do nothing to convince any of us that the organisation fully understands the implications of the missed payments. It has more recently admitted to serious issues: the true scale is apparently a backlog of 86,000 cases. None of that should surprise the Government or anybody else here. I recall significant delays in the armed forces recruitment process during a period in which Capita mismanaged medical assessments. Issues similar to those faced currently were reported in the administration of the teachers’ pension scheme, again by Capita. In October 2025, the Public Accounts Committee warned the Government of a clear risk that Capita would not be ready to take on full administration in December, and it called on the Cabinet Office to explain how it would ensure sufficient staffing and resourcing.

At the heart of this issue are 1.7 million current and former civil servants who just want peace of mind from knowing that the pensions they have earned through years of public service will be handled fairly, with dignity and, if at all possible, with a base level of competence. The Liberal Democrats therefore have questions for the Minister and the shadow Minister, the hon. Member for Kingswinford and South Staffordshire (Mike Wood). I hope that in their closing speeches, they will answer some of the following.

In the light of this situation, what steps are the Government taking to support individuals who have mortgages to pay, families to feed and all manner of expenses for which they are currently being denied payment? Perhaps the shadow Minister will tell us how his Government assessed Capita’s role in the administration of the teachers’ pension scheme, where similar issues were reported. Will he explain whether Capita’s role in the administration of the teachers’ pension scheme factored in the awarding of this contract? Capita claims that the backlog it inherited was more than twice the size that it anticipated. Will the Minister tell us who is responsible for that—MyCSP, Capita, this Government or the last one?

Perhaps the hon. Member for Kingswinford and South Staffordshire, the solitary Conservative representative, will answer the following. The value of the contract is £239 million over seven years. Given Capita’s history of mismanagement, by what metrics was it determined to have won the contract? Could the Minister answer this question? Hauntingly, the contract includes an option to extend it from seven to 10 years. Will this mismanagement factor into the Government’s determination about whether to extend it?

My final question is for the Government. We can all sit here, empathise and complain about Capita, but we must learn the lessons. What lessons will the Government take from this fiasco?

--- Later in debate ---

[Mike Wood]

I am sure that the hon. Lady will accept that because I was not a Minister in the previous Government, I did not have access to the tendering process, and do not have the details of the bid. However, there was a clear failure by the previous providers and there have been many opportunities since the last general election to review that contract in light of the clear failure—

[Cameron Thomas]

The hon. Gentleman is probably quite right to note that there were significant failings by the previous provider. Does he accept that there were clear failings by the previous Government?

[Mike Wood]

No. The hon. Gentleman is obviously trying to hide from the fact that his party was part of the Government that awarded that contract in 2012 to the mutual joint venture. He may wish to look at his own party’s part in that if he thinks that it was a mistake. Sadly, the information provided by the Minister for the Cabinet Office to the House last week fell well short of what is required. It failed to address the fundamental question of how the Government allowed Capita to take over the contract in December despite the repeated warnings and the signs that it had clearly failed in its key milestones.