Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, how much money has been withheld for contracts with Capita across all Departments since the company took over administration of the Civil Service Pension Scheme; and if she will outline what penalties can be levied against the company for delivery failures.

The Cabinet Office does not hold this information centrally. Individual Contracting Authorities are responsible for managing their own contracts with Capita, including any withholding of performance related payments, which are governed by specific contractual terms and subject to commercial confidentiality.

In relation to the contract for administration of the Civil Service Pension Scheme, which was awarded in 2023, the Cabinet Office has withheld £9.9 million in contract payments for undelivered milestones. In addition, the contract provides for remedies in the event of delivery failure, including the withholding of milestone payments and the application of service credits and other financial penalties in line with contractual performance measures.