Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what steps he is taking to establish who is responsible for the delays in payments of the Civil Service Pension Scheme and ensure they are held accountable.

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.

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.

Furthermore, any further service failures by Capita will attract financial penalties, which will reduce the overall cost of the contract.

The contract includes key performance indicators that, if not met, include financial penalties. These have already been applied in respect of Capita’s performance in December.

The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.

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.