Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, how many newly retired members of the civil service pension scheme did not receive payments on their due dates in each of the last 3 years.
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.
The former pension scheme administrator, MyCSP, was responsible for providing management reports to the Cabinet Office. Based on the management information that we hold we can confirm that MyCSP has reported the following average details for members receiving payments.
Between Jan-Dec 2023: 31,022 members retired with 100% of payments on time.
Between Jan - Dec 2024: 37,486 members retired - MyCSP reported that 75% of payments were paid on time which meant that 9,372 members did not receive their payments on time. The majority of members received their lump sum within 30 days of retirement alongside the first pension payment.
Between Jan-Nov 2025 30,825 members retired - MyCSP reported that 99% of payments were paid on time which meant that 308 members did not receive their payment on time. The majority of members received their lump sum within 30 days of retirement alongside the first pension payment.
These figures are based on MyCSP reporting and do not include work in progress that was transferred to Capita on the 1st December 2025.
Capita has made lump sum payments to 8,979 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.
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