Pension Schemes

John McDonnell Excerpts

Wednesday 22nd April 2026 Commons Chamber

[Nick Thomas-Symonds]

As I said in my statement, there is a backlog of around 24,000 outstanding pension quotations. The hon. Gentleman is absolutely right about the taxpayer not having to pick up the tab for Capita’s failures. There has been an offer from Capita to cover the costs of the surge team, which I will consider in my broad consideration of all the commercial issues in respect of this contract. My priority is for taxpayers not to have to foot the bill for issues that have been caused by the provider and are not the fault of the scheme beneficiaries.

With regard to the Royal Mail statutory scheme, as I have said, we will now ensure continuity of service, because that is very important. I think the hon. Gentleman will see that I have been very decisive on the future of that contract today. We will look at a range of options for that, but continuity of service is obviously a priority in the short term.

[John McDonnell (Hayes and Harlington) (Lab)]

I declare an interest as the chair of the PCS trade union parliamentary group. The Minister just said that there was an offer from Capita. It should not be an offer; it should be a requirement that it covers the recovery costs.

It was outrageous that the civil service scheme was given to Capita after its failure on the teachers’ pension scheme, its failure with regard to the NHS data releases, and the failure on the military contract. This failure has affected so many civil service pensioners. It has caused real harm, suffering and stress. It is equally outrageous, I have to say, that its performance has not warranted the removal of the contract altogether. The Minister has today terminated the contract with Royal Mail. Why has he not terminated this contract?

My hon. Friend the Member for Sheffield South East (Mr Betts) raised the issue of the preparation of in-house provision of the civil service pension scheme. The Minister did not refer to those preparations. Will he meet the trade unions and discuss how we bring the administration of the civil service pension scheme in house, because as sure as night follows day, Capita will fail on this contract, as it has done on every other?

[Nick Thomas-Symonds]

I certainly echo what my right hon. Friend says about it being imperative that taxpayers do not foot the bill for what has gone wrong. On the different contracts, each obviously has to be considered on its own merits, but the House can be assured that on each of the contracts for which the Cabinet Office is responsible, I keep all contractual options open. With regard to his point about optionality and going in-house in future, I will certainly ensure that the PCS trade union gets the appropriate ministerial meeting.