Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what the cost to the public purse has been for the recruitment and deployment of reconciliation teams from other Departments to assist Capita in managing the backlog of pension queries; and whether this cost will be recovered from Capita through contractual clawback provisions.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme (CSPS) to Capita in November 2023 under the previous government.

The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. 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 to ensure members receive the support they deserve. While the immediate focus remains on stabilising the service through this intensive recovery plan, we are committed to ensuring all 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.

Furthermore, any service failures attract penalties which reduce the overall cost of the contract. While the specific financial values of commercial transactions remain confidential, the Cabinet Office has already withheld significant transition milestone payments due to missed deliverables and continues to apply the full mechanism of service credits for performance failures. Capita also remains responsible for any additional expenses incited. The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.