Civil Service Pensions: Capita

Lord Stirrup Excerpts

Thursday 5th February 2026 Lords Chamber

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

My Lords, it might be helpful if I lay out what the Government are doing. I know that many Members of your Lordships’ House may have been contacted for details, not least because they may be members of this scheme. If there are specific concerns or cases that people have raised with Members of your Lordships’ House, I have sought assurances that we will have the same access to the services being provided to MPs for casework in this instance and can share details with noble Lords. As regards the contract and the issue of insourcing, this contract was signed in November 2023 and came into place last year. While there may be questions about insourcing and other contracts, that simply is not going to be able to be done with this contract.

[Lord Stirrup (CB)]

My Lords, the transfer of British Army recruiting to Capita was a total shambles. What lessons were drawn from that experience and what precautions were put in place before handing Capita the responsibility for the administration of Civil Service pensions?

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

My Lords, I think many of us have had different experiences with Capita in different contracts over time. I fear that I may be on the record not calling it “Capita” in other parts of Parliament. Specifically, noble Lords may be aware that the Public Accounts Committee in the other place raised concerns about this contract last summer and therefore a whole series of assurance reviews were undertaken and put in place. There are ongoing issues about what has happened and how it has happened, but the priority at this point has to be how we prioritise those who are waiting for deferred salary, but also, at the most extreme end, people who have died in service and who have taken ill-health retirement. To reassure noble Lords, the recovery plan expects that those cases will have been caught up and dealt with by the end of this month, and the hardship loans have started to be paid this week.