Asked by: Will Forster (Liberal Democrat - Woking)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, whether bereavement cases where a civil servant retired on ill health grounds prior to death are being prioritised in addressing the Civil Service Pensions Scheme backlog; and what steps he is taking to ensure that surviving spouses in such cases receive pensions payments from the Scheme.
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.
We recognise the significant pressure on surviving spouses, particularly in cases involving a prior ill-health retirement. 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.
This prioritisation extends to the surviving spouses of these members; once an ill-health retirement is processed, any subsequent survivor benefit claims are fast-tracked within the highest priority recovery stream to ensure payments reach the bereaved without further undue delay.
We have set up a dedicated team to work urgently with Capita, with 650 full time staff across Government and Capita and restoring normal service as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery.
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 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: Will Forster (Liberal Democrat - Woking)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the potential risks of using (a) Capita, (b) Equiniti and (c) other private providers for pension administration; and whether he plans to review the 2023 procurement exercise.
Answered by Anna Turley - Minister without Portfolio (Cabinet Office)
Prior to the 2023 procurement for the Civil Service Pensions Scheme (CSPS), the Cabinet Office conducted a formal, evidence-based Delivery Model Assessment. This assessment was carried out in line with Public Sector Procurement legislation and the Sourcing Playbook, evaluating the risks and benefits of various models, including insourcing.
The assessment considered capability, capacity, and value for money, which informed the decision to procure from the third-party market. The subsequent procurement exercise was competitive, attracting multiple bidders and confirming a viable market.
The new contract contains robust governance procedures and contractual options, such as step-in rights, to manage supplier performance. As is current practice, performance data will continue to be published to ensure transparency.
The 2023 procurement was a formal process conducted in line with all legal requirements and is now complete, and there are no plans to review the exercise. The department is now focused on the transition to the new service. Capita has been contracted to assume full administrative responsibilities from 1 December 2025.