Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what assessment he has made of the potential merits of a compensation scheme for Civil Service Pension Scheme members impacted by administrative delays related to receiving first lump sums.

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.

No former civil servant should be facing financial hardship as a result of delays to their pension. Arrangements are in place for interest-free bridging loans of up to £5,000 (and up to £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.

Additionally, interest will be paid on delayed benefits to avoid financial loss by members.

There is already a statutory complaints procedure in place that can be used for formal complaints that will determine whether compensation is appropriate on a case by case basis. This is run in accordance with the standards set by the Pensions Ombudsman.