Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what assessment he has made of the potential merits of lifting the £10,000 limit on interest free loans for pensioners impacted by delays to the Civil Service Pension scheme administration.

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 accessing their pensions are unacceptable.

Interest-free loans of £5,000 (up to £10,000 in exceptional cases) are available for the overwhelming majority of members of the Civil Service Pension Scheme whose pensions are overdue.

Alongside these arrangements, Capita has prioritised payment of tax-free pension lump sums for members who had received quotations but were not in receipt of their benefits, with the vast majority of these having been paid in February.

The focus is on returning services to normal. Huge efforts and stops have been put in place to ensure this happens as soon as possible.