Civil Servants: Workplace Pensions

The Cabinet Office awarded Capita the contract to administer the Civil Service Pension Scheme in November 2023 under the previous government. The current delays facing scheme members are entirely unacceptable, and the government has taken firm action to resolve them through a clear recovery plan with strict delivery milestones. We have deployed additional resources to expedite priority cases, ensuring that serving and former staff receive the high standard of service they deserve. Regular progress updates remain available to members via the pension portal and GOV.UK.

While Capita committed to a complete return to standard contractual service levels by the end of June 2026, they have failed to meet this critical milestone. The Government is taking robust action to hold Capita to account. This includes withholding £9.9 million in contract payments for undelivered milestones, alongside confirmation that the Government surge team costs will be recovered directly from Capita. To enforce strict compliance, independent auditors are being deployed to conduct a technical systems review, and an on-the-ground Remedial Adviser has been appointed at Capita’s expense. Further commercial, legal, and operational options remain on the table during the consideration of long-term structural delivery options.

We are evaluating the options for the long-term delivery of the scheme, including options to bring scheme administration back in-house in line with our manifesto commitment to oversee the biggest wave of insourcing of public services in a generation.