MPs debate Capita pensions shamble
In the House of Commons today (25 June) MPs quizzed Cabinet Office ministers on the Capita Civil Service Pensions shambles.
Euan Stainbank MP said Capita has been fined millions for repeated past failures and has now failed to manage civil service pensions under a contract approved by the Conservatives in November 2023, after replacing MyCSP, which had faced similar problems.
He said this has seriously affected many constituents still waiting for payments, including one who retired after lifesaving surgery last year and another who has waited 11 months since being bereaved after his wife’s death. He asked whether the minister would directly address Capita’s failures, end the contract and bring the civil service pension scheme in-house.
In response, to this and other questions raised, Satvir Kaur MP, Cabinet Office parliamentary secretary said that default outsourcing does not work and agreed that Capita’s failures were unacceptable.
The minister said: "The government’s priority is to support those affected and secure a full recovery of the service.
"If Capita does not deliver by the end of June, all commercial levers and options will be considered.
"Subject to the Speaker’s agreement, the Paymaster General intends to make a statement to the House on the government’s next steps."
As with the Royal Mail contract, she said: “We will not hesitate to hold Capita to account and let it feel the consequences of its actions.”
PCS assessment
PCS’s overall assessment is that the administration crisis remains no nearer resolution.
Key concerns include:
• continuing lack of a credible process for escalated cases;
• inadequate reporting and transparency from Capita;
• a substantial backlog of pension quotes and revisions;
• a large number of complex cases still unresolved;
• uncertainty over the treatment of deferred pension cases; and
• evidence that the Cabinet Office may be lowering the bar against which Capita’s performance is judged.
Taken together, these developments reinforce the union’s long-standing concerns about outsourcing pension administration and the inability of the current arrangements to provide an acceptable service to members.
PCS is pressing the case with government for bringing pension administration back into the Civil Service rather than continuing with the outsourced model.