Yesterday, Cabinet Office Parliamentary Secretary Sally Jameson MP delivered a statement to the House of Commons providing a further update on the ongoing recovery work within the Civil Service Pension Scheme. The statement addressed the performance of Capita as scheme administrator, the action being taken by the Government to tackle significant backlogs and service failures, and the support available to members affected by delays and errors.
For those wishing to watch the statement in full, it can be viewed on Parliament Live TV from 15:46:49.
Parliamentlive.tv – House of Commons
Capita Contract Performance and Government Oversight
- The Cabinet Office Parliamentary Secretary Sally Jameson provided an update on the civil service pension scheme administration, noting that the contract awarded to Capita in 2023 aimed to resolve significant performance issues inherited from the previous provider. Despite Capita missing recovery milestones in April and June, the Government intervened by appointing an independent auditor and a remedial adviser at Capita’s expense. Cabinet Office officials now had full access to Capita’s systems and data, working closely to develop a credible recovery plan focused on technology, data, and case management.
- Jameson committed to fortnightly public updates on performance metrics and confirmed that nearly £10 million in payments had been withheld from Capita, who had voluntarily accepted a 10% reduction in monthly payments. She rejected the use of “workable” and “nonworkable” case categories, emphasising that cases were either resolved or unresolved, with priority given to those approaching critical thresholds to avoid tax consequences. The Government was considering all options, including insourcing the scheme, and had contingency plans should contract termination become necessary.
- Anna Dixon MP and Mike Martin MP reiterated that Capita remained contractually responsible for rectification, with ongoing consultations involving trade unions and pension experts to determine the best operational model.
- Kate Osborne MP referenced the Procurement Act 2023 as a new mechanism to address poor contractor performance, though investigations or debarment cases could not be publicly discussed due to legal constraints.
Operational Challenges and Technology Failures
- Jameson and other MPs described systemic operational failures, including overwhelmed revision teams, incorrect pension quotes, and inadequate technology.
- She criticised Capita’s claims of an AI-enabled pension scheme as misleading, stating that the technology had been insufficient to meet demands.
- Nearly 150 Cabinet Office staff had been deployed to support Capita in clearing the backlog, alongside additional investment in automation technology, though challenges remained significant.
Constituent Cases and Compensation Issues
- Numerous MPs, including Mike Wood MP, Lisa Smart MP, Patricia Ferguson MP, and Frank McNally MP, shared distressing constituent cases involving lengthy delays, incorrect payments, poor communication, and financial hardship. Cases highlighted included bereavement and ill health retirement claims delayed for over 100 days, lost paperwork, and incorrect pension quotes causing hardship and distress.
- Jameson expressed sympathy for affected individuals and invited MPs to submit cases for follow-up. She confirmed that compensation claims would be handled through Capita’s internal dispute resolution process and, if necessary, the Pensions Ombudsman, acknowledging the complexity of tax implications arising from delayed payments.
- The Minister also committed to improving responsiveness and exploring ways to increase capacity for casework surgeries.
Accountability and Contractual Penalties
- Jameson emphasised that Capita remained accountable for service delivery and faced commercial levers, including withheld payments and contractual breaches related to missed deadlines on priority cases. She confirmed that the Government was monitoring the rectification plan fortnightly and would return to Parliament with updates and further actions if improvements were insufficient. The independent remedial adviser’s report would be shared confidentially with parliamentary committees, with a public summary under consideration.
- Members expressed scepticism about Capita’s ability to deliver despite Cabinet Office involvement, with calls for decisive government action including contract termination and insourcing.
- Jon Trickett MP and Clive Betts MP emphasised the need for accountability, while Jameson reiterated confidence in the current plan due to enhanced oversight and data access.
Transparency, Communication, and Member Support
- Several MPs, including Katrina Murray MP, raised concerns about Capita’s transparency, particularly regarding complaint closures and case progress. Jameson acknowledged previous inaccuracies in reporting and committed to ensuring transparency through direct Cabinet Office access to data and fortnightly public updates. She condemned reports of disrespectful treatment by Capita helpline staff and pledged to address such behaviour.
- Paul Foster MP proposed establishing a Cabinet Office hotline and regular surgeries for MPs to support constituents, with Shockat Adam MP emphasising that improving Capita’s service was essential for meaningful outcomes.
- Jim Dickson MP noted that lessons from Capita’s failings would inform the Department for Education’s transfer of the teachers’ pension scheme to Tata, reinforcing the Government’s commitment to insourcing public services.
Impact on Vulnerable Constituents
- MPs recounted distressing cases involving vulnerable individuals, including terminally ill patients, elderly pensioners, and bereaved families facing severe hardship due to delayed or incorrect pension payments. Jim Allister KC MP and Joshua Reynolds MP described cases where payments had been delayed for months or years. The Minister expressed sympathy and committed to prioritising such cases and following up on individual correspondence urgently.
Future Monitoring and Government Commitment
- The Minister reiterated the Government’s commitment to ensuring no pensioner was financially worse off due to Capita’s failures and to recouping public funds spent on rectification. She pledged to monitor the rectification plan closely, provide regular parliamentary updates, and take further action if necessary, including considering insourcing the scheme.
- The statement concluded with an acknowledgement of the widespread hardship caused and a commitment to sustained parliamentary engagement to restore trust and service quality for civil service pension scheme members.
CSPA View
At the CSPA, our priority remains ensuring that members’ concerns are heard, understood and acted upon. While the Minister’s statement acknowledged the scale of the problems facing the Civil Service Pension Scheme, many members continue to experience unacceptable delays, poor communication and uncertainty regarding their pensions. Our focus remains on ensuring that pension scheme members receive the service they deserve and that those who have suffered hardship are not left without support.
CSPA meets weekly with both Cabinet Office and Capita officials to raise and resolve individual member cases, monitor progress against recovery plans and challenge ongoing service failures. We also continue to engage with MPs from across Parliament to highlight the wider concerns affecting scheme members and to ensure that these issues remain high on the political agenda.
We welcome the Minister’s commitment to greater transparency, regular performance updates and stronger oversight of Capita’s performance. We will judge progress by outcomes and will continue to advocate for members until service standards are restored and confidence in the scheme is rebuilt.
