Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, pursuant to the Answer of 16 April 2026 to Question 108514 on Civil Servants: Workplace Pensions, what steps he is taking to support those pensioners not yet receiving their civil service pension and facing financial hardship that have exhausted their interest-free bridging loans or interim lump sum payments.

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 been 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.

Capita has made lump sum payments to 11,454 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 May.

To provide immediate financial support to those who may need it, including those who have left under the compensation scheme, arrangements are in place for interest-free bridging loans of £5,000 - up to £20,000 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.

To mitigate member hardship, employers have issued £8.9 million in Transitional Support Loans to 1,665 members.

Capita has committed to processing the outstanding full and partial retirement quotes during May and June. The recovery team's immediate focus is to instil long-term stability. This is expected to restore the Civil Service Pension Scheme to contractual levels by the end of June 2026. The recovery plan is organised into intensive three-week sprints to stabilise the service. Further details are available at the link provided - Civil Service Pension Recovery Plan Update:

https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates