Civil Service Pension Scheme

Lord Wigley Excerpts

Tuesday 30th June 2026 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

There are two separate parts to this, which include the current contract. On debarment and the Procurement Act, while I cannot go into the specific details of this case right now, I assure the House that the Government remain committed to taking necessary and proportionate actions in accordance with the law.

With regard to Capita as a supplier, we need to remember how many contracts it supplies to government. It has a total of 85 contracts across the public sector, 39 in central government and 46 with the wider public sector. While there have been significant, outrageous failures in this contract, the reality is that, in operating its other contracts, it is currently meeting 87% of its KPIs, so this has to be assessed on a case-by-case basis. However, to reassure Members of your Lordships’ House, outside of the contract for the Civil Service and the Royal Mail pension schemes—I updated the House on the latter earlier this year—the Cabinet Office does not have any further contracts with Capita.

[Lord Wigley (PC)]

My Lords, does the Minister accept that a figure of 23,000 has been identified as the number of those who have been caught by this problem? Those who are newly retired may still have payments to make on mortgages on their houses and may be in danger of losing them. Is there no mechanism that can be brought forward immediately to make estimated payments to those who have a pension entitlement but no figure coming through so that they avoid the worst excesses that could come their way unless this is resolved?

[Baroness Anderson of Stoke-on-Trent (Lab)]

The noble Lord is right that this is affecting people’s day-to-day existence—we have seen in the news coverage at the weekend quite how heartbreaking that has been. We are working on a case-by-case basis. Some of the most harrowing cases have been raised with colleagues at the other end of the building and we are working with MPs, including by having virtual surgeries every day since 29 May, to help them support their constituents in this space.

I want to raise two specifics that it is important for your Lordships to be aware of. First, we have doubled the amount available in transitional support loans—it was £10,000 last time I was at the Dispatch Box on this issue; it is now £20,000 that is available to everybody who is not yet accessing their pension. I urge noble Lords, if they know people in this space, to let members of the scheme know that they are to contact the department they worked for and they can access £20,000 in a loan. We have also introduced a process to pay interest in respect of pensions payable by Capita from 1 December 2025 where full benefits are paid more than one month after retirement. The interest rates applied will be based on Bank of England base rates plus 1% for the period of delay between retirement and payment. However, the noble Lord is right: we need to do this as quickly as possible and get people their money.