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 current delays facing scheme members are entirely unacceptable, and this 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.

During the procurement and approval process, the then Paymaster General and Minister for the Cabinet Office, Jeremy Quin MP, had overall responsibility for Civil Service workforce matters at the time and confirmed that the Cabinet Office should proceed to award the contract to Capita. This was further subject to the Cabinet Office’s controls process for which the then Parliamentary Secretary to the Cabinet Office, Alex Burghart MP, had oversight.

The contract awarded in November 2023 followed a standardised procurement process with an evaluation process, centred on the core criteria of quality, cost, and social value.

Quality compromised 65% of the assessment, cost 25% and Social Value 10%. The Quality assessment evaluated Capita's response, which included previous experience of transitioning and administering pension schemes.