The Civil Service Pensions recovery programme has entered a new phase, with newly appointed Pensions Director Richard Vianello outlining tougher action against Capita and renewed efforts to improve service levels for members and pensioners.
In his first update since joining the Cabinet Office on 29 June, Vianello acknowledged that while there have been signs of progress in stabilising pension administration, the current level of service remains unacceptable and significant challenges remain. He paid tribute to Angela MacDonald, HMRC Second Permanent Secretary, for her leadership of the recovery taskforce and pledged to continue providing transparent fortnightly updates.
Government Escalates Action Against Capita
Despite extensive government intervention over recent months, Capita has failed to meet its commitment to clear outstanding work in key service areas by the end of June. Measures already taken have included:
- A 140-person surge support team
- Virtual support sessions for MPs and caseworkers
- Intensive operational oversight from government departments
However, speaking in the House of Commons on 6 July, Cabinet Office Minister Nick Thomas-Symonds confirmed that service levels remain below the standard expected by civil servants and pensioners.
As a result, the Cabinet Office is now moving to the next stage of contractual intervention. This includes:
- Deploying independent auditors to review systems, IT infrastructure, data integrity and compliance.
- Beginning the appointment of a Remedial Adviser, at Capita’s expense, to drive operational improvements on the ground.
The move signals a tougher approach as the government seeks greater accountability and faster progress.
Increased Scrutiny and Accountability
Civil Service Pensions continues to face significant parliamentary scrutiny. Representatives from the Cabinet Office and Capita appeared before the Public Accounts Committee and the Public Administration and Constitutional Affairs Committee on 8 July to discuss ongoing performance issues.
Vianello has also committed to meeting Capita’s leadership team to review detailed recovery plans, including productivity targets, operational improvements and clear delivery milestones.
At the same time, the Cabinet Office is strengthening its own pensions team through a recruitment campaign across multiple grades, aimed at increasing its ability to hold suppliers accountable and improve long-term service delivery.
Progress on Outstanding Pension Quotations
One of the most significant issues remains delayed retirement quotations. At the end of June:
- 6,700 members with past retirement dates were still waiting for quotations.
By the end of this week:
- The backlog is expected to reduce to approximately 4,000 cases.
While this represents progress, Vianello described the situation as “wholly unsatisfactory” and stressed that additional resources are being deployed to accelerate improvements.
Focus on Complex Cases
Of the outstanding quotations:
- 1,500 cases have been classified as complex.
To address these, Capita is working alongside specialist surge teams from HMRC and the Department for Work and Pensions.
The project aims to resolve cases using information already held by employers, shared service providers and existing records. Where additional information is required, affected members will receive a first-class letter explaining the next steps.
A dedicated telephone service is also being established to provide direct support and updates for members involved in these complex cases.
Bereavement Case Backlog Remains Significant
Bereavement cases continue to be a major concern. Current figures show:
- Benefits are due to 7,603 families.
- Capita is awaiting further information from 3,033 families or representatives.
- 4,570 cases are currently with Capita for processing.
Capita has committed to clearing these outstanding bereavement cases within two months, with completion targeted for early September.
Death in Service and Ill Health Retirement Cases
The latest update also highlighted ongoing work on particularly sensitive case types:
- 618 outstanding death in service cases
- 429 outstanding ill health retirement cases
The recovery team is monitoring older cases individually, providing what Vianello described as “hypercare” to ensure they receive focused attention.
Looking Ahead
While the Civil Service Pensions recovery programme is beginning to show signs of improvement, the latest update makes clear that substantial work remains. The Cabinet Office is increasing oversight, introducing independent scrutiny and strengthening its internal capability, while continuing to press Capita to deliver the service standards promised to members.
For thousands of civil servants, pensioners and families still awaiting resolutions, the coming months will be a critical test of whether these stronger interventions can finally turn recovery plans into meaningful improvements.
Richard Vianello’s next recovery update is scheduled for 23 July 2026.
Source: Civil Service Pensions Taskforce Update #12, Richard Vianello, Director of Civil Service Pensions (10 July 2026). Full update available at: https://www.civilservicepensionscheme.org.uk/memberhub/kbarticle/?id=KA-01374
