Civil Service Pensions

John McDonnell Excerpts

Monday 6th July 2026 Commons Chamber

[Nick Thomas-Symonds]

On the principle of compensation, the right hon. Gentleman has a valid point. I set out some of the arrangements that are already in place, particularly in relation to interest where money should have been paid that was not paid on time. There is a second principle here, which is that the taxpayers of the United Kingdom will not pay for Capita’s failure.

[John McDonnell (Hayes and Harlington) (Lab)]

I declare a non-pecuniary interest as the chair of the Public and Commercial Services Union parliamentary group. I take it as read that, when the Minister refers to the stakeholder group, it will include PCS, as the trade union. I also take it as read from the tenor of the questions so far that insourcing will be top of the agenda for that review. I ask him, in all rationality: how is it that Capita has been awarded a £320 million contract to administer the pay of 250,000 civil servants?

[Nick Thomas-Symonds]

To my right hon. Friend’s first point: yes, of course, the stakeholder group includes PCS. His question on Capita being awarded the contract in the first place is a valid one. It is fair to say that the previous pension provider was certainly not providing a sufficient level of performance, but, as he will have heard in my answer to the shadow Minister, the hon. Member for Kingswinford and South Staffordshire (Mike Wood), the contract was signed in November 2023; we inherited a long-term contract and I have been trying to deal with the issue since.