Pension Schemes

Lord Reid of Cardowan Excerpts

Tuesday 28th April 2026 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank my noble friend for that series of questions. Let me start with the factual question, because I have that data to hand. There are currently 2,696 retirement cases where a quotation has been issued but the pension is not yet in payment. These cases are the remaining subset of the 6,482 retirement cases that have already received a quote and therefore no longer have an open case type related to quotations. All remaining open retirement cases where a quote has been issued are on track to be processed, with full payment by the end of May—next month.

My noble friend asked a series of questions, some of which are slightly more straightforward to answer than others. On insourcing, an assessment will be conducted to identify the optimal delivery model for these pension services, specifically evaluating both insourcing and outsourcing options. This process will involve a thorough analysis of costs, risks and benefits in line with the sourcing playbook, ensuring that we learn from the delivery failures identified in the current contracts. Although previous assessments in 2021 favoured outsourcing to realise benefits with the least risk, we remain committed to whichever model is proven to provide the best value for money for the taxpayer.

On Capita and why that contract has not been removed, as I have said, we engage with Capita on this contract every day as part of the recovery model. As noble Lords will appreciate, I have talked not only about Capita and its responsibility as part of fixing what is clearly broken, but about the legacy of what was left by MyCSP. When we have undertaken the review after fixing what is broken—there have been failures across the piece, clearly, but we must be clear on who was responsible for which part—we will know better and we will take additional steps, as we have with the Royal Mail pension scheme, if required.

[Lord Reid of Cardowan (Lab)]

My Lords, I thank the Minister. She has pointed out some signal failures in this case; they are now pretty widely known. What puzzles people, including those who are very sympathetic to the Government, is why, when there is such a failure of one particular company—of course, it is not just Capita; there have been failures by others—the failure is consecutively followed by a grant to the same company of another contract that bears some relationship in description to the one on which they have so patently failed in another department? Can the Minister tell us whether there is any cross-departmental process for evaluating failures of this nature, in order to alert other departments to the very serious consequences of the course on which they might be embarking? I confess that this puzzled me when I was in government, as well as now.

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank my noble friend. There was I, about to say that, given his time in government and his extensive ministerial service across many departments, my noble friend knows better than I do about the awarding of these contracts.

There is a serious point here: at the heart of these conversations is the fact that every contract is managed on its own merits and contains robust, specific protections to ensure delivery. The award of the contract we are talking about followed a rigorous and transparent process under the public contracts regulations. The Secretary of State sought and received specific assurances from Capita regarding delivery after it had become clear what had happened to the Civil Service Pension Scheme. The DWP was alerted; obviously, there are members of staff at the DWP who will also have been affected by this.

It is fair to say, I think, that I have never had so many discussions with my colleagues as I have had with civil servants across the piece who wanted me to make sure that we fix this and fix it well, given my exposure to them. I am very grateful that my noble friend Lady Sherlock has come to be supportive; there are always effective cross-government communications when required, and I am pleased that my noble friend is sitting next to me for this one.