Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, if will make an assessment of the potential merits of (a) the introduction of a compensation scheme to support those facing financial hardship as a result of the delays in administering pensions and lump sums and (b) the prioritising of hardship cases including unpaid retirees, people retiring imminently, ill-health retirement cases and bereavement cases.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government. Administration of the Civil Service Pension Scheme transferred to Capita on 1 December.

The issues and delays facing some civil servants and pension scheme members in accessing their pensions is unacceptable.

In response, we have set up a dedicated a surge team of 150 staff to work alongside the 500 Capita staff to clear the backlog. There is an agreed recovery plan in place that prioritises the most urgent cases including bereavements, ill health and hardship cases and has clear timelines and targets for full-service restoration for all members.

No former civil servant should be facing financial hardship as a result of delays to their pension and we are putting in place direct support for people facing delays in their first payments. We are also actively working with all partners to ensure affected members do not suffer permanent financial loss as a result of this issue.

The Cabinet Office has set out arrangements whereby employing departments are able to make interest-free hardship loans to those who are waiting for their pension benefits.