Civil Service Pensions

Clive Betts Excerpts

Monday 6th July 2026 Commons Chamber

[Nick Thomas-Symonds]

I am quite astonished by the shadow Minister’s contribution. The House should be in no doubt that the previous Government signed a 10-year contract in November 2023. That is the situation we were left with, and I have been grappling with it throughout my time in office. The idea that I have put ideology above operational urgency is utter and total nonsense. I have intervened strongly at every single opportunity, and I have held Capita to account on its milestones time and again, to the tune of £9.9 million, in a way that the previous Government never did.

I have a lot more sympathy with the shadow Minister on his point about compensation. We have introduced a process to pay interest in respect of pensions paid by Capita from 1 December 2025, whereby full benefits are paid more than one month after retirement. The interest rate applied will be based on the Bank of England base rate plus 1% for the period of the delay between retirement and payment. That information has formally been published on a civil service pension website, and members will have the opportunity to ask for other losses to be covered as part of the complaints process. As for the rest of the shadow Minister’s comments, I think he will struggle to find anyone who has been as robust as I have been in holding Capita to account.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Public Accounts Committee and Sir Geoffrey Clifton-Brown, its Chair—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We refer to colleagues not by their names, but by their constituencies. You have already named the Chair of that Committee, so dive into the question.

[Mr Betts]

I will dive very deeply into the question, Madam Deputy Speaker.

The Chair of the Committee sends his apologies for his absence; he is presently in a Committee meeting. We have looked at this situation on a number of occasions, and we will have a joint session with the Public Administration and Constitutional Affairs Committee and the Minister on Wednesday. The individual cases that we have heard are absolutely appalling, and we will relate them to Capita and the Minister. We have heard from two widows who have been waiting since last year to get their pensions sorted out, which is not acceptable.

I have two issues for the Minister to reflect upon. When the previous Government let the contract, we were in a situation in which procurement could not properly take account of the past record of companies, and I understand that the Government have now changed that. Looking at Capita’s past record on both the teachers’ pension scheme and the civil service pension scheme, we see that it has not run one scheme properly. That should have been taken into account before the contract was let. 

The other issue, and this is where the Opposition spokesperson did say something relevant, is that this scheme was falling apart last year. The National Audit Office looked at it, and clearly it was going wrong then. So I ask the Minister: did he start to look at alternatives then and did he at that point start to put together in-house provision that could eventually take over?

[Nick Thomas-Symonds]

My hon. Friend is absolutely right that these cases are harrowing. He is also right to say that there were huge issues—I am sure we will cover this on Wednesday—with MyCSP, the previous provider. As I have said, the previous Government decided to sign this contract in November 2023. That is not, of course, to say that I was just seeking specific reassurances last autumn; we were also looking at contingencies. I am sure that he, and indeed the hon. Member for North Dorset (Simon Hoare), will cover that in the two Committees’ joint evidence session on Wednesday.