Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what financial penalties have been applied to (a) MyCSP and (b) Capita on the management of the Civil Service Pension Scheme to date.

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 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.

Furthermore, Capita remains subject to all service level agreements (SLAs) within the contract, which includes system access and timely payments. We are applying contractual levers available to us to deal with performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery. For example, 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 latest position of the Civil Service Pension Recovery Plan Update (2 March 2026) is available at this weblink: (latest update 16 March): https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates/civil-service-pension-recovery-plan-update-16-march-2026

MyCSP ceased as the administrator of the scheme in December 2025 upon transfer to Capita. I can confirm that MyCSP were also subject to SLAs and the full mechanism for service credits for performance failures were applied when required.