Pension Schemes Debate

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Department: Cabinet Office
Wednesday 22nd April 2026

(1 day, 7 hours ago)

Commons Chamber
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Judith Cummins Portrait Madam Deputy Speaker (Judith Cummins)
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I call the Liberal Democrat spokesperson.

Charlie Maynard Portrait Charlie Maynard (Witney) (LD)
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I thank the Minister for his statement. We have learned today that this contract was awarded two and a half years ago. Capita had two and a half years to prepare for taking on the administration of the civil service scheme. As has been mentioned, the Public Accounts Committee warned in October that Capita was not ready, yet it took on the contract regardless on 1 December. Today we learned also that the Government have terminated another Capita contract, for the Royal Mail pension scheme.

My constituents would like answers to the following questions. How many people on the civil service pension scheme, as of now, have not received payments that they should have had? Why should taxpayers be paying for the surge in His Majesty’s Revenue and Customs staff? A hundred and forty staff have come in to sort this out. Surely Capita should be paying for its incompetence. What is the timeline for Capita to clear up all inherited arrears, and is it prioritising hardship and bereavement cases? With regard to the Royal Mail pension scheme, now that Capita has been terminated, what is the plan?

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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As I said in my statement, there is a backlog of around 24,000 outstanding pension quotations. The hon. Gentleman is absolutely right about the taxpayer not having to pick up the tab for Capita’s failures. There has been an offer from Capita to cover the costs of the surge team, which I will consider in my broad consideration of all the commercial issues in respect of this contract. My priority is for taxpayers not to have to foot the bill for issues that have been caused by the provider and are not the fault of the scheme beneficiaries.

With regard to the Royal Mail statutory scheme, as I have said, we will now ensure continuity of service, because that is very important. I think the hon. Gentleman will see that I have been very decisive on the future of that contract today. We will look at a range of options for that, but continuity of service is obviously a priority in the short term.