Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what key performance indicators and service standards apply to Capita’s administration of the Civil Service Pension Scheme; how frequently performance is reviewed by the Department; and whether the Department will publish regular statistics on (a) backlog volumes, (b) average processing times, and (c) the number of cases involving delayed pension payments.

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 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 been applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme. We have implemented regular technical stand-ups between Cabinet Office experts and Capita administrators to monitor recovery velocity. Ministers are also regularly updated on the situation.

Capita prioritised the most urgent cases and by the end of February, all death in service cases were either settled or progressed to the final stage or awaiting a member response. The same position was reached for ill health retirement applications by mid-March.

Capita has made lump sum payments to 8,979 members, the majority of whom have retired but are not yet receiving their pension, and are on track to bring these members into regular pension payments by the end of April.

To provide immediate financial support to those who may need it, including those who have been dismissed with compensation, arrangements are in place for interest-free bridging loans typically up to £5,000 or £10,000 in exceptional cases to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members. The pension scheme continues to make monthly pension payments to approximately 730,000 existing pensioner members on time.

The latest position of the Civil Service Pension Recovery Plan Update is available at this weblink: https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates, although this is only for the recovery period, and can be discontinued at any time. There are currently no other plans to publish regular statistics on Capita’s performance.