Civil Service Pensions

Mike Martin Excerpts

Monday 26th October 2026 Commons Chamber

[Sally Jameson]

We have already withheld nearly £10 million in contractual payments, and Capita is voluntarily taking 10% less in its monthly payments. On bringing the service in-house, it is important that we get this right, do it at the right time and ensure that we pick the best model for the scheme, so that service members do not have to suffer any further. We are liaising with trade unions, pension experts and others to look at the options for different types of models, and I will return to the House when I have further updates on that.

[Mike Martin (Tunbridge Wells) (LD)]

Like many right hon. and hon. Members, I have constituents who have not had their pensions paid. In the worst case, a constituent has waited for 11 months without a pension. My question is twofold. First, what compensation will the Minister force Crapita—sorry, Capita—to pay those constituents who have missed out? Secondly, there are tax implications for the sequencing of payments, so payments can fall in different tax years, among other things. Will that all be squared away with His Majesty’s Revenue and Customs, so that our constituents do not overpay tax?

[Sally Jameson]

We are committed to ensuring that no member is left financially worse off, and Capita has committed to paying interest on late payments. All complaints will be handled with reference to the Pensions Ombudsman standards. Compensation can be awarded following investigation under the internal dispute resolution procedure—first by Capita and then by the Cabinet Office. If members are not satisfied, they can then refer to the Pensions Ombudsman. On tax, it is difficult to comment on individual cases. If the hon. Gentleman is aware of a specific case and would like to raise it with me, I will liaise with His Majesty’s Treasury to ensure that no one is negatively impacted.