Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, if he will provide an update on the status of the Royal Mail Statutory Scheme Pension deficit.

The administration of the Royal Mail Statutory Pension Scheme (RMSPS) is the responsibility of the Cabinet Office.

The RMSPS was created in April 2012 when the UK government assumed responsibility for the historic liabilities (accrued before 2012) of the Royal Mail Pension Plan (RMPP).

The scheme is closed to new members and further benefit accrual. It will continue to operate until all members and their beneficiaries have received their entitlements. The scheme holds no investment assets. All liabilities are met by annual parliamentary votes for funding.

The RMSPS’ deficit at 31 March 2025 is £28.2 billion.

This information can be found in the annual report and accounts:

https://www.gov.uk/government/publications/royal-mail-statutory-pension-scheme-2024-2025

It should be noted that on 22 April 2026, the Government announced the termination of the new Royal Mail Statutory Pension Scheme (RMSPS) contract with Capita. This decision was taken following Capita’s failure to meet critical transition milestones and IT automation requirements over an 18-month planning period. To ensure no member is detrimentally impacted, service delivery will continue under the existing contract while the Government assesses a new delivery model.