Civil Service Pension Scheme: Administration Debate
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David Chadwick
Main Page: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)Department Debates - View all David Chadwick's debates with the Cabinet Office
Civil Service Pension Scheme: Administration
David Chadwick Excerpts(1 day, 17 hours ago)
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David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
The hon. Lady is making an excellent speech, and we are all grateful for the opportunity to raise these cases. I have been contacted by a constituent who left the civil service in 1992 and, more than 30 years later, has still not received the pension that she is owed, despite providing proof of service from HMRC and making repeated transfer requests. Despite the fact that the civil service later located her superannuation file, the scheme continued to insist that no record existed. Does the hon. Lady agree that such cases show that the failure is not just delay but deep-rooted maladministration within our state, and that the Government must commit to ensuring people are paid the pensions that they are legally entitled to?
Lorraine Beavers
I agree.
To deal with hardship, the Cabinet Office has announced interest-free loans of up to £10,000. That may help in the short term, but it is wrong that pensioners are being asked to borrow money that already belongs to them. That should never have been needed. What is more, those affected have been left in limbo and have no information about the operation of these loans. Given the mismanagement of the scheme, how can members have any confidence that Capita will know who is facing hardship and is therefore eligible for a loan?
PCS has made it clear that many of these cases should have been completed before the hand-over, but were not. The Cabinet Office has accepted that more retirements late last year, and more this year, have made the backlog worse. Without a clear and well-resourced recovery plan, normal service could take many months to return. That is why Capita must urgently prioritise the cases of retirees, as over the coming months many could remain without any income whatever. It must increase staffing capacity and, ultimately, devote every resource to clearing the backlog.
It is welcome that the Cabinet Office has now brought in about 150 civil servants, mainly from HMRC, to help fix the problem, but it raises a simple question: if so many civil servants are needed, why is the work not being done inside the civil service? Are the Government billing Capita for the work that those civil servants are having to do?