NHS Pensions: McCloud Remedy Implementation

(Limited Text - Ministerial Extracts only)

Tuesday 1st July 2025 Written Statements

[The Minister for Secondary Care (Karin Smyth)]

On 31 March 2025, I issued a written statement on the delivery of remediable service statements to NHS pension scheme members affected by the discrimination identified by the McCloud judgment. In it, I set out the extended deadlines by which the NHS Business Services Authority, which acts for the Secretary of State as the administrator of the NHS pension scheme, must provide affected members with remediable service statements.

Those deadlines were informed by a delivery plan put forward by the authority. However, as statements have been produced, it has become clear that the resource required to implement that plan was significantly underestimated.

I regret to inform the House that the NHS Business Services Authority will not be able to meet a number of these deadlines, including for those members who were due to receive a statement by 1 July 2025. The authority has begun issuing these statements, and enacting members’ consequential decisions, and as of 27 June 2025, 1,359 have been issued.

I stated on 31 March 2025 that I will hold NHS Business Services Authority to account against those extended deadlines for the delivery of remediable service statements. I will be meeting with the chief executive of the NHS Business Services Authority this week to express my disappointment with the progress that has been made and will be asking the recently-appointed independent chair of the NHS Pension Board to review the capacity, capability and delivery plans of the authority’s McCloud remedy functions and report to me before recess. The NHS pension scheme is a key part of the reward package for NHS staff who should expect an excellent service.

When I have agreed a revised delivery plan with the authority, one which is endorsed by the authority’s board, I intend to set new deadlines, including for those members who were expecting a statement by 1 July 2025, and will update the House as soon as possible. It is important to me that members have realistic timeframes for when they will receive their statements, and that the Government fulfil their obligations to them at the very earliest possible opportunity.

I know this will be disappointing news to affected members and the organisations that represent them. I want to assure them that we will continue to prioritise members based on their likelihood of facing financial detriment, that the authority are continuing to issue statements while a revised delivery plan is developed, and that they will receive 8% interest on pension arrears they are owed following receipt of their statement and enactment of their choice.

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