Civil Servants: Workplace Pensions

(asked on 29th January 2026) - View Source

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to the oral evidence given by the Paymaster General and Minister for the Constitution and European Union Relations to the Public Administration and Constitutional Affairs Committee session on 28 January 2026, HC 463, whether his Department has conducted an economic impact assessment on the potential cost to the public purse of providing loans and compensations to people impacted by delays to the receipt of their civil service pensions.


Answered by
Anna Turley Portrait
Anna Turley
Minister without Portfolio (Cabinet Office)
This question was answered on 6th February 2026

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government. The Civil Service Pension Scheme transferred to Capita on 1 December 2025 and is experiencing significant performance issues in delivering services to members. The delays facing some civil servants and pension scheme members in accessing their pensions is unacceptable.

No former civil servant should be facing financial hardship as a result of delays to their pension. We are putting in place interest-free bridging loans of up to £5,000 (and up to £10,000 in exceptional cases) to recent retirees facing payment delays. These loans are to be repaid and will be met from existing departmental settlements. The provision of bridging loans and potential compensation does not require an economic impact assessment as this is not a new, revised or de-regulatory policy, bill or statutory instrument.

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