On Wednesday 4th February a Westminster Hall debate was brough forward by Lorraine Beavers MP on administration of the Civil Service Pension Scheme.
The debate exposed the widespread failure of Capita to manage the transition, as well as questions over the awarding of the contract, and the steps necessary to ensure that retired civil servants received the funds they are entitled to. MPs also brought forward individual cases indicating the hardships being experience by those affected.
A summary is below:
Lorraine Beavers (Lab, Blackpool North and Fleetwood)
- Opened the debate on widespread failures in the administration of the Civil Service Pension Scheme, causing stress, financial hardship and uncertainty for retirees nationwide
- Said problems escalated after Capita took over on 1 December 2025, with PCS reporting floods of complaints, poor service, mixed messages and a large inherited backlog from MyCSP, leaving thousands unpaid
- Cited Cabinet Office permanent secretary Cat Little’s admission that service falls short of expectations
- Highlighted systemic failures including missed pension payments and lump sums, lost records, broken IT systems and extreme call delays, backed by extensive constituent case studies of people unable to pay bills, forced to borrow, or unable to plan retirement
- Said some retirees have received no pension income at all, with PCS estimating up to 8,500 people unpaid
- Criticised reliance on interest-free hardship loans, arguing pensioners should not have to borrow money they are owed, and questioned Capita’s ability to administer those loans fairly
- Said failures reflect poor planning, weak contract management and long-standing Government oversight failures, tracing problems back to outsourcing in 2012 and the quiet award of the Capita contract in 2025 despite known pressures from rising retirements and legal pension changes
- Welcomed additional civil servants drafted in to help, but questioned why work is outsourced if it must be fixed in-house, and whether Capita is being billed for that work
- Backed PCS demands to prioritise hardship cases (unpaid retirees, imminent retirements, ill-health and bereavement cases) and to introduce bespoke compensation covering interest, extra costs and distress
- Said apologies and recovery plans are insufficient without clear responsibility, deadlines, staffing and resources, and called for urgent action to clear the backlog
- Put five direct asks to Government:
- Immediate financial support and fair compensation
- Publication of a clear, independently overseen recovery plan
- Pausing voluntary exit schemes and increasing staffing to clear the retiree backlog
- Review of how the contract was handled, including whether the service should return in-house
- Reaffirmation that public service pensions must be paid on time and with respect
- Linked the crisis to Labour’s pledge for large-scale insourcing, urging the Government to deliver on it
- Concluded that failure to honour pensions is a breach of trust with civil servants and a serious failure of Government
Gregory Campbell (DUP, East Londonderry)
- Raised case of terminally ill young civil servant whose pension issue was only resolved after PMQs. Said it should not require public escalation to fix urgent pension cases
- Urged Capita, HMRC and Cabinet Office to resolve issues quickly and systematically
Jim Dickson (Dartford) (Lab)
- Shared constituent case of retiree caring for husband with dementia, struggling financially due to delays
- Said Capita’s performance falls far below acceptable standards, and called for urgent clarity and access to the interim emergency fund
Kim Johnson (Lab, Liverpool Riverside)
- Referred to long-running failures under MyCSP and previous Capita involvement. Argued affected pensioners should be compensated as soon as possible.
Richard Foord (LD, Honiton and Sidmouth)
- Described constituent waiting over two hours repeatedly on the “helpline” and being cut off. Said service was completely unacceptable.
Edward Morello (LD, West Dorset)
- Raised cases of long-serving public servants unable to pay mortgages or household bills. Questioned whether this is an acceptable way to treat those who dedicated careers to public service.
Daniel Francis (Lab, Bexleyheath and Crayford) (Lab)
- Said he has received numerous similar constituent complaints. Called for urgent action to ensure timely and consistent pension payments
Tom Hayes (Lab, Bournemouth East)
- Highlighted struggles of probation officers, prison staff, court clerks and said winning public contracts is not the same as delivering them well.
David Chadwick (LD, Brecon, Radnor and Cwm Tawe)
- Raised case of constituent waiting over 30 years for a civil service pension. Said issues show deep-rooted maladministration, not just delay.
Dan Carden (Lab, Liverpool Walton)
- Said constituents are still terrified they cannot pay bills despite supposed crisis payments. Asked what sanctions will be imposed on Capita for continued failure
Ann Davies (PC, Caerfyrddin)
- Said West Wales constituents face the same unacceptable delays, with issues only resolved after parliamentary escalation.
- Called situation inexcusable, citing 8,000+ retirees unpaid after 12 months and a 90,000-case backlog
- Supported PCS call for bespoke compensation including interest and distress, and urged Government to consider bringing pensions back in-house once backlog is cleared.
Kate Osborne (Lab, Jarrow and Gateshead East)
- Said she has been inundated with constituent complaints and warned problems were foreseeable.
- Criticised Ministerial response directing MPs to tell constituents to contact Capita, and said constituents are not reassured, citing multiple cases of retirees without pensions or lump sums for months.
- Asked whether Capita will be instructed to:
- Prioritise people without income for months
- Pause voluntary exit schemes
- Introduce a fair compensation scheme that does not rely on complex internal complaints processes.
Jim Shannon (DUP, Strangford)
- Said constituents are close to defaulting on mortgages. Emphasised failures are Capita’s responsibility, not Ministers’, but demanded firm action.
- Asked multiple questions:
- Why changeover to Capita was not postponed
- When deadlines will be set
- Why McCloud remedy work was under-resourced
- When contingent decision routes will be issued
- Whether and when the affordability test might be applied
- Said Government’s obligation to civil servants continues beyond retirement.
John McDonnell (Lab, Hayes and Harlington)
- Described situation as a failed privatisation, long warned against by PCS. Criticised award of contract to Capita given past failures elsewhere.
- Said union is seeking:
- Transparency on staffing levels and resources
- Clear timetable for resolution
- Mandatory prioritisation of hardship cases
- Delay of voluntary exit schemes
- Warned Parliament may face same crisis again unless model changes.
Anna Dixon (Lab, Shipley)
- Recalled PAC concerns about:
- Poor service and staff retention at MyCSP
- Weak Cabinet Office oversight
- Capita’s readiness and value for money
- Said Cabinet Office assurances in December proved misplaced.
- Asked whether Government underestimated Capita’s capability and whether penalties will apply.
- Urged urgent action and insisted Capita—not pensioners—must bear the cost.
Ian Lavery (Lab, Blyth and Ashington)
- Emphasised that those affected are low-paid civil servants, many previously reliant on benefits.
- Blamed privatisation since 2012 and criticised the “secret” 2023 Capita contract.
- Called for pausing voluntary exit schemes, more staffing and resources, and penalties for Capita if it is failing.
Jenny Riddell-Carpenter (Lab, Suffolk Coastal)
- Said Government is taking issue seriously but Capita’s handling is disgraceful.
- Said some constituents are afraid to be named, fearing further delays.
Emma Foody (Lab, Cramlington and Killingworth)
- Said issue is especially acute in the north-east due to large HMRC and DWP workforce.
- Described constituents spending hours on the phone with no outcomes. Said problems are systemic, not isolated
Sally Jameson (Lab, Doncaster Central)
- Said MyCSP was “appalling”, but Capita should have known the scale of the problem. Argued Capita should not have taken contract if it could not deliver.
- Raised case of constituent delaying partial retirement out of fear of non-payment. Called for:
- Review of how contract decision was made
- Disclosure of official advice to previous Ministers
- Use of break clauses
- Accountability for procurement failures
- Asked whether Capita should be barred from future Government contracts.
Euan Stainbank (Lab, Falkirk)
- Said affected retirees feel stripped of dignity and respect
- Supported prioritisation of hardship and imminent retirement cases
Jayne Kirkham (Lab, Truro and Falmouth)
- Welcomed recovery plan but demanded clear timelines
- Highlighted accuracy failures:
- Incorrect pension figures
- Wrong beneficiaries listed
- Repeated phone failures and false assurances
Leigh Ingham (Lab, Stafford)
- Focused on bereavement cases, gave tragic case where a widower died without receiving any pension. The family are still unpaid and unable to cover funeral costs.
- Said these are simple, undisputed claims.
Anneliese Midgley (Lab, Knowsley)
- Said affected pensioners are hard-working public servants who did everything right. Raised cases of constituents at risk of losing homes and unable to pay basic bills.
- Warned repeated failures like this undermine public trust in politics.
- Questioned why Capita, with a known record of incompetence, was awarded the contract.
Amanda Martin (Lab, Portsmouth North)
- Described situation as a shambles under MyCSP and Capita. Criticised seven-year £239m Capita contract awarded despite warning signs.
- Welcomed recovery team and hardship loans but said they do not fix flawed procurement.
Cameron Thomas (LD, Tewkesbury)
- Praised debate and said MPs are receiving large volumes of complaints. Rejected explanation that problems were just “teething troubles”, and referred to Capita’s previous failures (armed forces recruitment, teachers’ pensions).
- Noted PAC warnings in October 2025 about Capita’s readiness
- Asked Government and Conservatives:
- How individuals facing immediate hardship are being supported
- Whether Capita’s past failures were considered in procurement
- Who is responsible for underestimated backlog
- Whether contract extension to 10 years will be reconsidered
Shadow Minister for the Cabinet Office, Mike Wood
- Acknowledged serious distress caused by Capita’s failures. Said situation is an unforced error by Capita.
- Resisted claims of Conservative responsibility, citing:
- Failures by MyCSP
- NAO findings that complaints doubled in final year of MyCSP contract
- Accepted that warning signs were clear:
- NAO report (June 2025)
- PAC report (October 2025)
- Capita missed key transition milestones
- Argued Ministers were on notice of risks well before December handover, and questioned why Government allowed Capita to take over despite warnings.
- Criticised Cabinet Office claims that issues only emerged “in recent weeks”, and said hardship loans were introduced too late.
- Called for:
- Enforcement of penalty clauses
- Compensation for affected pensioners
- Assurance that such failure will not recur
Minister without Portfolio, Anna Turley
- Said civil servants deserve a seamless, timely and accurate pension service; stated clearly that the current service is “absolutely unacceptable”.
- Took responsibility on behalf of the Government and issued a formal apology, acknowledging serious distress caused, particularly for those facing bereavement, ill health and financial hardship.
- Confirmed the Capita contract was awarded in 2023 by the previous Government, and committed to a full review of the contract award and management, once immediate service failures are resolved.
- Explained transition failures after 1 December 2025 transfer from MyCSP to Capita:
- Core payroll for 730,000 existing pensioners continues correctly.
- New retirees severely affected due to 86,000 inherited work-in-progress cases, far higher than planned.
- Additional problems included 15,000 unread emails, data transfer and mapping errors, IT interface failures, and portal problems.
- Reported that as of late January:
- 8,500 recent retirees waiting for first monthly pension payment.
- 6,300 open death cases, including 300 death-in-service cases, causing severe distress to bereaved families.
- Emphasised scale and complexity of the scheme: 1.7 million members, five schemes, 320 employers, thousands of retirements and bereavements monthly.
- Set out Government intervention and recovery actions:
- Appointed Angela MacDonald (HMRC) to lead a recovery taskforce.
- Implementing a full recovery plan delivered in intensive three-week sprints.
- Deployed a 150-person civil service surge team, increasing total resourcing to over 650 staff.
- Announced interest-free bridging loans of £5,000 (up to £10,000 in exceptional cases), with payments targeted within days, prioritising hardship, ill health and bereavement cases
- Confirmed improvements planned for the member portal, including case tracking, digital retirement processes and planning tools, with regular updates to MPs and the House
- Gave service recovery timelines:
- Death-in-service and ill-health cases restored by end of February.
- Most services expected back to standard levels by June, subject to review.
- Provided MPs with a direct email contact and committed to fast-tracking constituency cases; promised further MP drop-ins.
- Addressed McCloud remedy separately, with a dedicated project; majority of cases expected by April 2027
- Said the contract includes KPIs and financial penalties; confirmed millions already withheld and that all commercial levers, including termination, remain available
- Reassured members that pensions are safe and data secure, committed to ensuring no permanent financial loss, and pledged that the Government will not rest until the service is stabilised and Capita held fully to account
