Question to the Ministry of Defence:

To ask His Majesty's Government, further to the answer by Lord Coaker on 15 September (HL2810), whether they ensure that Equiniti and Sopra have insurance cover for negligence; and if so, whether liability of the insurance provider for the damage caused by miscalculation has been investigated.

Equiniti Paymaster and Sopra Steria Ltd (UK) are private companies independent of Government. The Ministry of Defence (MOD) has contracted Sopra Steria Ltd since May 2020 to provide pension administration services. Equiniti Paymaster delivers payment services as a subcontractor to Sopra Steria and has no direct contract with the MOD.

The immediate priority for the MOD, Sopra Steria and Equiniti Paymaster is to identify affected cases, correct pension entitlements, and ensure members receive accurate information about their individual circumstances. Support is provided throughout, including tailored repayment plans and personalised financial and welfare assistance from Veterans Services. Where applicable, pension members may request an overpayment write-off from the MOD in accordance with HM Treasury's Managing Public Money guidelines, available at: https://www.gov.uk/government/publications/managing-public-money.

Affected members have been notified in phases, with timing dependent on the nature and complexity of each case as reviews and assessments were completed. Most cases have been addressed, though some complex cases remain under review to confirm entitlement accuracy.

The delay in notifying affected pension members after initial identification of the issue was cause by the need to assess the full extent of the error, accurately identify all the affected individuals, and validate cases before corrective action could commence. His Majesty's Government recognises that errors in pension payments may cause uncertainty for individuals and regrets any concern resulting from delayed notifications. Measures have been strengthened to improve oversight and prevent recurrence.

The MOD's contractual arrangements with Sopra Steria include provisions relating to liabilities, insurance and risk management, with contractor performance managed through established commercial and governance processes. Investigations into the causes of errors are ongoing to establish root causes and whether any contractual obligations have been breached. These findings will guide any contractual remedies.