Question to the Cabinet Office:
To ask His Majesty's Government whether Capita were aware of the extent of the backlog of civil service pension payments when they bid for, and were awarded, the pensions management contract.
The procurement process for the Civil Service Pensions Scheme began in 2022, with the award of the contract for administration of the service in March 2023, under the previous government. As part of the procurement process, data was shared with all bidders that outlined the current performance and any work in progress. It should be noted that the transition process was for 2 years after the contract award.
While the initial procurement data suggested a work-in-progress level of approximately 37,300 cases, subsequent instructions from the Cabinet Office in mid-2025 advised the provider to prepare for volumes of up to 100,000. In evidence provided to the Public Accounts Committee, Capita outlined that the full complexity and age of the inherited backlog, which included 89,000 cases at the point of transfer, only became fully transparent to the administrator upon the transfer of services on 1 December 2025.
A joint recovery plan between the Cabinet Office and the administrator is currently in place, supported by surge capacity from HMRC. Further information can be found here:
https://committees.parliament.uk/event/26804/formal-meeting-oral-evidence-session/
And details of the recovery plan can be found here:
https://www.gov.uk/government/publications/civil-service-pension-recovery-plan-updates