Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, if he will make an assessment of the potential merits of insourcing the Civil Service Pension Scheme administration.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
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 applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
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 8,747 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, 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
While the current focus remains on stabilising the service through the intensive recovery plan, the Cabinet Office considers all options for future contracts, including in-house administration. Any future procurement exercise will continue to use all commercial levers and be conducted in accordance with the requirements of the Procurement Act 2023.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
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
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what assessment he has made of the adequacy of Capita's compliance with their contract to administer the Civil Service Pension Scheme.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
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 applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
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 8,747 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, 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
While the current focus remains on stabilising the service through the intensive recovery plan, the Cabinet Office considers all options for future contracts, including in-house administration. Any future procurement exercise will continue to use all commercial levers and be conducted in accordance with the requirements of the Procurement Act 2023.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
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
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, with reference to 'Public Procurement: Growing British industry, jobs and skills Government response to consultation' on the 26th of March 2026, what assessment he has made of the potential merits of recognising bus manufacturing as an industry critical for National Security.
Answered by Chris Ward - Parliamentary Secretary (Cabinet Office)
The package I announced commits the government to publishing new guidance for departments on the appropriate use of the national security exemption in the Procurement Act 2023 when procuring from the AI, steel, shipbuilding and energy infrastructure sectors.
These four pathfinder sectors were selected based on their status as critical industries where disruptions in international markets have exposed vulnerabilities that threaten national interests and overall stability. We are initially focussing on these sectors because we believe that sovereign supply chain resilience is a critical factor in supporting national security.
I want to reassure that while bus manufacturing is not one of the sectors initially envisaged for the national security guidance, the wider package of procurement measures can benefit this sector, including, where relevant, changes to social value and its focus on jobs and communities. You will also be aware that Mayoral Transport Authorities have agreed to a minimum of 10% social value weighting in all future bus procurement tenders and a social value procurement working group has been set up to work with Mayoral Transport Authorities to share best practices on social value.
I am also in discussion with the department for transport on what further steps we can take to support British bus manufacturers.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, whether his Department is taking steps towards a compensation scheme for delays to first pension payments and lump sums caused by the transition between MyCSP to Capita of the Civil Service Pension Scheme.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
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 applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
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 8,747 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, 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.
Interest will be paid on delayed benefits to avoid financial loss by members. In addition, the existing statutory complaints process evaluates claims for financial losses, as well as distress and inconvenience caused, on a case-by-case basis to determine whether compensation is due. This ensures that any retiree who provides evidence of extra costs, such as bank penalties or interest charges caused by the delay, is fairly assessed. This process is run in accordance with the standards set by the Pensions Ombudsman.
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
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what consideration is given to disqualifying companies fined for non compliance for paying the national minimum wage when awarding Government contracts.
Answered by Chris Ward - Parliamentary Secretary (Cabinet Office)
Non compliance with paying the national minimum wage is unacceptable and has no place in government contracts or in wider society.
The Procurement Act 2023 provides contracting authorities with strong powers to exclude suppliers from public procurements where an exclusion ground applies, including where they have breached existing labour laws.
Where the circumstances that cause an exclusion ground to apply are continuing or likely to reoccur, contracting authorities must exclude suppliers subject to mandatory exclusion grounds.
Such grounds could include where a supplier is convicted of the offences of refusing or wilfully neglecting to pay the national minimum wage, or of failing to comply with a labour market enforcement order (which can relate to offences under the National Minimum Wage Act 1998). Where a discretionary exclusion ground applies, such as if a labour market enforcement order is made against the supplier, contracting authorities can choose whether to exclude them.
The Debarment Review Service can also carry out investigations in accordance with the Act to establish whether a supplier can be added to the debarment list.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, how many backlog death in service cases remain unresolved by Capita following the Cabinet Office's Recovery Plan Sprint 3.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
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 applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
The highest priority cases for recovery, including death-in-service and ill-health retirements, have been returned to normal service levels, with cases concluded wherever it has been possible to do so.
Capita has processed 407 death-in-service cases, successfully reducing the volume of workable cases from 375 to 75 as of 23 March. Capita has now achieved its target of normalising work in progress to 60 cases, representing a return to steady-state operations. While the backlog has been addressed, this figure is expected to fluctuate slightly as cases currently with third parties are returned to Capita for finalisation.
The Cabinet Office remains committed to ensuring these cases are managed efficiently to provide timely support to beneficiaries.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, with reference to UIN 116915, what the most recent data for outstanding backlog Civil Service Pension cases his department has been informed of by Capita.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
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 applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.
The Cabinet Office confirms that the Civil Service Pension Scheme (CSPS) administrator inherited 86,000 cases from the previous provider. Significant progress has been made in clearing the most urgent components of this inherited backlog, supported by an established recovery plan.
Key achievements as of 13 March 2026:
The inherited backlog of 15,000 unread emails was fully addressed by the end of February 2026.
Of the 8,063 inherited retirement lump sum cases, 6,871 payments have been processed, ensuring all inherited lump sums are paid where full information has been received.
For urgent cases, outstanding workable cases have been significantly reduced, returning to or nearing normalised work in progress levels.
All February and March back office delivery promises are on track due to the deployment of additional CO and Capita surge resource.
The latest position of the Civil Service Pension Recovery Plan Update (2 March 2026) is available at this weblink: (latest update 16 March): https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates/civil-service-pension-recovery-plan-update-16-march-2026
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, with reference to UIN 116915, how regularly are Capita reporting the number of outstanding backlog Civil Service Pension cases to the Cabinet Office.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
Capita provides the Cabinet Office with data regarding the number of outstanding Civil Service Pension backlog cases on a weekly basis. This regular reporting ensures the Department maintains continuous oversight of performance levels and progress against recovery targets. 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. The recovery plan is organised into intensive three-week sprints to stabilise the service.
We are applying contractual levers available to us to deal with performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery. For example, 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 applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.
Further details are available by using this web link (latest update 16 March):
https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates/civil-service-pension-recovery-plan-update-16-march-2026
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what consideration has been made to exercise his contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. Although the contract was awarded to Capita in 2023, under the previous Government, 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 applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.
The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.
Furthermore, any further service failures by Capita will attract financial penalties, which will reduce the overall cost of the contract.
While at this time there are no plans to exercise contract termination rights on Clause 33.1 and 33.2 as outlined in the Pension Scheme Administration and Related Services Agreement between the Government and Capita Pensions Solutions Ltd. Our full focus is on stabilising the service and supporting any members experiencing hardship. We will conduct a full review once this has been achieved.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, how arrears payments were made by Capita Pensions Solutions Ltd, on behalf of the Civil Service Pension scheme as of the 5 March 2026.
Answered by Satvir Kaur - Parliamentary Secretary (Cabinet Office)
The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.
The delays faced by pension scheme members in accessing their pensions are unacceptable.
Arrears payments made by Capita Pension Solutions Ltd to retired members are usually made by BACS. However, these may be made by CHAPS, where a case has been escalated due to vulnerabilities such as financial hardship.