Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, whether he plans to provide compensation for civil servants impacted by administrative failures in the civil service pension scheme.
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.
In prioritising the most urgent cases, Capita has committed to all outstanding death-in-service and ill-health retirement cases to be either in payment, or have
undertaken all activity possible whilst waiting for the member to respond, with the vast majority of these having been paid in February.
No former civil servant should be facing financial hardship as a result of delays to their pension. We are putting in place interest-free bridging loans of up to £5,000 (and up to £10,000 in exceptional cases) to recent retirees facing payment delays. These loans are to be repaid and will be met from existing departmental settlements.
Additionally, interest will be paid on delayed benefits to avoid financial loss by members.
Furthermore, all member complaints regarding the transition are being handled in accordance with the standards set by the Pensions Ombudsman.