Civil Servants: Workplace Pensions

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023 under the previous government.

The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve.

To ensure transparency and accountability, the Cabinet Office monitors the contract through the application of Key Performance Indicators (KPIs). As defined in Section 52(1) of the Procurement Act 2023, a KPI is a measure against which a supplier’s performance can be assessed throughout the life-cycle of a contract. By setting specific targets for the desired level of performance within the contract itself, the contracting authority can accurately measure and demonstrate the supplier’s progress.

Existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already been applied in respect to Capita's performance with recent issues and delays in administering the Civil Service Pension Scheme.

The Cabinet Office will continue to use all available commercial levers to hold Capita to account and ensure they deliver the contractual service levels.