Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what consideration has been made to exercise his contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. Although the contract was awarded to Capita in 2023, under the previous Government, I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
Furthermore, any further service failures by Capita will attract financial penalties, which will reduce the overall cost of the contract.
While at this time there are no plans to exercise contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd. Our full focus is on stabilising the service and supporting any members experiencing hardship. We will conduct a full review once this has been achieved.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, how arrears payments were made by Capita Pensions Solutions Ltd, on behalf of the Civil Service Pension scheme as of the 5 March 2026.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The delays faced by pension scheme members in accessing their pensions are unacceptable.
Arrears payments made by Capita Pension Solutions Ltd to retired members are usually made by BACS. However, these may be made by CHAPS, where a case has been escalated due to vulnerabilities such as financial hardship.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what information his Department holds on the size of the backlog of civil service pension cases on (a) 1 December 2025 and (b) 1 March 2026.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme (CSPS) to Capita in November 2023 under the previous government.
The issues and delays facing civil servants and pension scheme members in accessing their pensions is unacceptable. In response, we have set up a dedicated team to work urgently with Capita, with 650 full time staff across Government and Capita. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. It includes specific commitments to restore service levels as soon as possible. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.
Capita has prioritised the most urgent cases and by the end of February, all death in service cases were either settled or progressed to the final stage or awaiting a member response. A similar position will be reached for ill health retirement applications by mid-March.
Alongside these arrangements, Capita has prioritised payment of tax-free pension lump sums for members who had received quotations but were not in receipt of their benefits, with the vast majority of these having been paid in February.
On a) 1 December 2025, Capita inherited 86,000 CSPS cases, which included 15,000 unread emails from the previous provider; they have since opened and assessed all of these emails. We do not yet have the data for the position as of 1 March 2026.
The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time.
The latest position of the Civil Service Pension Recovery Plan Update (2 March 2026) is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates/civil-service-pension-recovery-plan-update-2-march-2026
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the potential merits of a compensation scheme for Civil Service Pension Scheme members impacted by administrative delays related to receiving first lump sums.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in accessing their pensions are unacceptable.
No former civil servant should be facing financial hardship as a result of delays to their pension. Arrangements are in place for interest-free bridging loans of up to £5,000 (and up to £10,000 in exceptional cases) to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members.
Additionally, interest will be paid on delayed benefits to avoid financial loss by members.
There is already a statutory complaints procedure in place that can be used for formal complaints that will determine whether compensation is appropriate on a case by case basis. This is run in accordance with the standards set by the Pensions Ombudsman.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the potential merits of lifting the £10,000 limit on interest free loans for pensioners impacted by delays to the Civil Service Pension scheme administration.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The issues and delays facing a number of civil servants and pension scheme members in accessing their pensions are unacceptable.
Interest-free loans of £5,000 (up to £10,000 in exceptional cases) are available for the overwhelming majority of members of the Civil Service Pension Scheme whose pensions are overdue.
Alongside these arrangements, Capita has prioritised payment of tax-free pension lump sums for members who had received quotations but were not in receipt of their benefits, with the vast majority of these having been paid in February.
The focus is on returning services to normal. Huge efforts and stops have been put in place to ensure this happens as soon as possible.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment his Department has made of the level of the gender pension gap within the civil service pension scheme.
Answered by Anna Turley - Minister without Portfolio (Cabinet Office)
The gender pension gap can be measured in different ways. In order to answer this question, we have used the difference in average pension in payment for men and women, expressed as a percentage of the average pension for men. Based on the latest data available, from 2024, the gap has reduced from 47% in 2016 to 42%.
We fully expect this position to continue to improve as the equality employment legislation reduces historical differences in both the gap in pay and pensions accruing.
The Cabinet Office will be commissioning the Government Actuary’s Department to carry out further analysis of the current position and will then consider next steps.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the effectiveness of Capita's performance on the delivery of the Civil Service Pension Scheme.
Answered by Anna Turley - Minister without Portfolio (Cabinet Office)
In November 2023, the Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita. This was under the previous government. The Scheme transferred to Capita on 1 December 2025. We are aware that Capita’s current performance is having a detrimental impact on some members.
We are working urgently with Capita to resolve these issues, and to ensure that civil servants, both former and serving, receive the quality of service and support they deserve.
We have established a cross-departmental team to work with Capita to develop and implement a recovery plan. Alongside this, Capita is increasing staffing in key areas, to increase processing times in relation to new retirements and support for members, particularly those impacted by delays.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what steps Civil Service Pensions is taking to improve the process for the provision of the death in service benefit pay-out to bereaved families.
Answered by Anna Turley - Minister without Portfolio (Cabinet Office)
The Scheme Manager and the Scheme Administrator work in close partnership to ensure that all death in service cases are treated as a matter of the highest priority.
To improve the provision of benefits to bereaved families, the new Civil Service Pensions Scheme Contract has been strategically designed with enhanced performance metrics and more rigorous key performance measures. These improved indicators allow the Scheme Manager to exert greater leverage over the Administrator, ensuring that service delivery meets strict standards and that any delays are met with robust financial penalties.
Furthermore, the Cabinet Office has implemented a standardised contract management policy to provide consistent, high-level oversight. This ensures that the administration of death in service benefits is not only closely monitored but held to a level of accountability that directly supports a more efficient and responsive process for claimants.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what steps he is taking with Cabinet colleagues to reduce spending on the Civil Service.
Answered by Nick Thomas-Symonds - Paymaster General and Minister for the Cabinet Office
This Government is relentlessly targeting waste and driving efficiencies to deliver a leaner Civil Service. At the Autumn Budget the Government announced that back-office administration costs will be reduced by 16% by 2029-30, to save money and focus resources on frontline services.
Examples of these departmental savings include DSIT’s use of AI and automation to free up staff from administrative tasks, which will deliver £7m of efficiencies by 2028-29. Additionally, the MOD will deliver £905m of technical efficiencies by 2028-29 through digitisation and modernisation, acquisition reform, and sustainability initiatives.
Additional, cross-government examples include cutting government credit card spending by £25 million in the first four months since new rules were introduced by the Cabinet Office in March. In addition, the Plan for London, part of the Places for Growth programme, was launched in May this year and will involve the closure of no fewer than 11 buildings by 2030, delivering annual savings of £94 million. Most notably, 102 Petty France, Caxton House and 39 Victoria Street will all be closed during the programme, as it consolidates the central London estate.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the potential merits of prioritising cyber security in public procurement contracts for national infrastructure projects.
Answered by Chris Ward - Parliamentary Secretary (Cabinet Office)
This Government recognises that cyber crime is a significant threat to our economy, to our businesses, and to the livelihoods of our workers.
As set out in the National Procurement Policy Statement, contracting authorities are required to identify the cyber and other security risks associated with their procurements and take appropriate action to mitigate them.