Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what consideration has been made to exercise his contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd.

The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. Although the contract was awarded to Capita in 2023, under the previous Government, I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.

Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.

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

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

While at this time there are no plans to exercise contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd. 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.