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 delays and unacceptable standard of communication facing scheme members and parliamentary offices are entirely unsupportable. This Government has taken robust action to enforce contractual accountability and rectify service delivery.

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. In response, the Government has withheld £9.9 million in contract payments for undelivered milestones and is recovering all public sector surge team costs directly from Capita. To enforce strict compliance, independent auditors are conducting a comprehensive technical systems review, and an on-the-ground Remedial Adviser has been appointed at Capita’s expense. The contract includes an enhanced penalty architecture featuring automatic financial deductions linked directly to missed service metrics, including correspondence wait times.

To directly address the backlog of unacknowledged correspondence, a dedicated 140-person government support team was deployed to stabilise operations, successfully clearing the 15,000 inherited unread emails. These resources will remain in place while the Government conducts an intensive assessment of Capita's operational data post-June to ensure long-term stability. To safeguard urgent casework from parliamentary offices, the Cabinet Office has instituted dedicated, daily virtual surgeries for Members of Parliament and their staff to provide direct intervention and updates on priority cases.