Civil Service Pension Scheme: Administration

Emma Lewell Excerpts

Wednesday 4th February 2026 Westminster Hall

[Lorraine Beavers]

I do agree with you; it is completely unacceptable.

[Emma Lewell (in the Chair)]

Order. I remind Members that when they say “you”, they are referring to me. It is the same convention as in the Chamber.

[Lorraine Beavers]

I apologise, Ms Lewell.

The scheme cannot even say how many people are still waiting for their first pension payout. From what we are hearing, it is clearly thousands. Behind those failures are real people. I want to share some examples of constituents who have agreed that their cases may be raised.

John was a prison officer for 25 years. He has been receiving just a fraction of his pension for several months. He was left on hold for two hours in December, only to be told that there was nothing Capita could do about it. Robert emailed to tell me that while the loan system is seen as a lifeline by many, Capita seems to be completely unequipped to deal with it. He says that some of his former colleagues are even being directed to charities and Citizens Advice.

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[Lorraine Beavers]

This problem has a long history. Pensions administration used to be done in-house. In 2012, it was moved out as part of the wider push to outsource services. Over time, Government control was sold off and MyCSP came to an end in 2025. The new contract was awarded quietly, despite known pressures from rising retirements and major legal pension changes.

Those decisions need to be looked at closely. PCS has called for Capita to focus first on hardship cases, including unpaid retirees, people about to retire, ill-health cases and bereavement. It has also called for proper compensation schemes to cover interest, extra costs and distress. Those are fair and reasonable demands.

Capita and senior officials have apologised and promised recovery plans. Apologies matter but they are not enough. When people are left without income, through no fault of their own, action must follow. There must be clear responsibility, updates and deadlines. Hardship cases must come first and resources must match the size of the problem. People must be compensated for the harm caused.

I have five questions for the Government. First, will the Minister ensure immediate financial support and fair compensation for all those affected? Secondly, will she publish a clear recovery plan with proper oversight? Thirdly, will she ensure that Capita pauses voluntary exit schemes, increases staffing capacity and dedicates every available resource to clearing this huge backlog for retirees? Fourthly, will she review how this contract was handled, including whether the service should return in-house? Fifthly, will the Minister restate a simple promise: pensions earned through public service must be paid on time and with respect?

Before the general election, my party promised Britain the biggest wave of insourcing in a generation. This farce has exposed just how important that promise was and remains. I urge the Labour Government to make good on that promise. Civil servants give their working lives to this country in good faith. When that trust is broken, it is not just unfair to individuals, it is a failure of Government that this House must address.

[Emma Lewell (in the Chair)]

We will need to keep Back-Bench contributions to three minutes. I call Ann Davies.

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[Several hon. Members rose—]

[Emma Lewell (in the Chair)]

Order. To ensure that all Members wishing to speak do get to contribute, I am reducing the time limit to two and a half minutes.

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[John McDonnell]

Will the hon. Member give way? He should not be allowed to get away with this.

[Emma Lewell (in the Chair)]

Order. It is obvious that the Member does not want to give way.

[John McDonnell]

He is not giving way because he will not admit responsibility.

[Emma Lewell (in the Chair)]

Order. It is up to the Member if he wishes to give way; he has made it clear that he does not wish to.

[Mike Wood]

I have already given way twice and I may give way later, but I need to get through my speech so that the Minister can reply, because I know that hon. Members will want to hear her response.

Philippa retired in May and suffered a nervous collapse triggered by pension delay. Tragically, Philippa died on Boxing day, so that is the very real human cost. Of course, the National Audit Office report did not stop with the failings of the final years of MyCSP’s contract. It also highlighted that Capita had failed to meet three of the six key transition milestones that were due by March 2025, all relating to scheme design and operational readiness. In other words, the warning signs were there in black and white. Ministers were on notice of the potential for serious problems, and of the consequences that those problems would have for pensioners, for at least the final half of 2025.