Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what assessment he has made of the potential impact of delays in the administration of Civil Service pensions following the transfer of pension administration responsibilities to Capita on those pension holders; how many former civil servants are awaiting payment of pension benefits beyond the expected timescale; and what steps he is taking to clear the backlog and ensure that affected individuals receive payments.

The Cabinet Office awarded Capita the contract to administer the Civil Service Pension Scheme in November 2023 under the previous government. The current delays facing scheme members are entirely unacceptable, and this Government has taken firm action to resolve them through a clear recovery plan with strict delivery milestones. We have deployed additional resources to expedite priority cases, ensuring that serving and former staff receive the high standard of service they deserve. Regular progress updates remain available to members via the pension portal and GOV.UK.

We are making Capita work to restore, to contractual levels, administration of the Civil Service Pension Scheme following its failed transition in December last year. Capita committed to restoring the service by the end of June. The Government is now undertaking a comprehensive assessment of the latest data provided by Capita post the end of June commitment.

We remain committed to holding Capita accountable. Should underperformance occur and the agreed firm end of June deadline not be met, the Government will not hesitate to take firm action, all commercial levers will be used and all options will be considered.

The Cabinet Office is unable to provide a specific breakdown of the number of Civil Service Pension Scheme members who are awaiting payment beyond the expected timescale, as members retire at different times, including early, late, or partial retirement. Around 20,000 members currently await pension quotations from Capita, including outstanding historical cases left unprocessed by the previous administrator.

Capita has issued lump sum payments to 18,425 retired members awaiting their regular pensions, whilst the scheme continues to pay approximately 730,000 existing pensioners on time. To alleviate immediate hardship, employers have issued £15.1 million in Transitional Support Loans to 2,734 members, alongside interest-free bridging loans ranging from £5,000 to £20,000. Members will fully repay these bridging loans upon receipt of their formal pension payments.

The scheme will automatically pay interest on delayed benefits to protect members from financial loss. The statutory complaints process evaluates claims for financial loss, distress, and inconvenience on a case-by-case basis and is operated in strict accordance with the standards set by the Pensions Ombudsman.