Watchdog MPs have raised concerns over outsourcing giant Capita’s readiness to take over the administration of the Civil Service Pension Scheme in a handover scheduled to take place in less than six weeks’ time.
A report from members of parliament’s Public Accounts Committee published today says there is a “clear risk” that the firm will not be ready on time for the 1 December switch from current provider MyCSP. Capita said it disputes the findings.
Their report follows an evidence session in July when Cabinet Office permanent secretary Cat Little acknowledged progress with “transition milestones” built into the government’s contract with Capita was a “significant cause for concern”.
Little told MPs that there would be a final “go/no-go” decision on the transfer – which follows a £239m contract Capita won nearly two years ago – in September.
Earlier this month, Civil Service World learned that the Cabinet Office is pushing ahead with the contract although the department did not confirm that a go/no-go decision had been made.
Civil Service World now understands that the go/no-go decision remains outstanding and still needs to take place before the final transfer goes ahead.
Handover preparations between current CSPS administrator MyCSP and Capita have been going on for months. However, today’s report accuses Capita of having missed multiple milestones agreed as part of the process.
Members of the Public Accounts Committee said that of eight transition milestones which have so far passed, only one had passed with all elements delivered on time.
Capita said the PAC report was based on old information related to its planned takeover of administration from MyCSP.
“This report presents a snapshot from several months ago and is not reflective of the current status of the transition,” it said in a statement.
In the report's recommendations, PAC calls on the Cabinet Office to fully develop contingency plans in case Capita is unable to take over the CSPS administration on 1 December. They also ask to be informed in writing “immediately” after the decision on whether to go ahead with the transition is taken.
Elsewhere, the report references significant service issues under the current contract with MyCSP that were flagged in a National Audit Office report back in June, and “unacceptable waits” for redress faced by scheme affected by 2015’s botched pension reforms.
Following legal challenges to those reforms that resulted in the so-called McCloud Judgment, tens of thousands of scheme members are entitled to have remedy options for their pensions set out, potentially resulting in a higher entitlement. Today’s report says that as of July, 53% of affected scheme members who are currently drawing their pension had yet to receive a “remedial service statement” that would allow them to make their choice and have it processed.
Public Accounts Committee chair Sir Geoffrey Clifton-Brown said it was “deeply frustrating” for the panel to be scrutinising an issue that ought to be as seamlessly run as civil service pensions.
He also called on the Cabinet Office to be transparent about the costs of bringing administration of the CSPS back in house at the Cabinet Office.
“Scheme members who have dedicated their careers to public service ought to be secure in the knowledge that it is under sound administration,” he said. “For value for money to be in question in the administration of this scheme; for members to be kept waiting years for age-related discrimination within the scheme to be remedied; for the Cabinet Office to successively fail in its management of the contract for the scheme as it shuttles between suppliers – this is an indictment of a system that should be invisibly run for the benefit of public servants who deserve security following their retirement.”
He added: “Given the performance of the scheme in the past as it has shuttled back and forth between different administrators, and equivalent risks identified in the future by our committee’s report, it is time for the government to publicly take stock. The costs and benefits of bringing the scheme back in-house must now be laid out. Whatever route is taken in the future, the status quo has long clearly not been good enough.”
A Cabinet Office spokesperson said: “We have re-procured the contract for civil service pensions administration, adding additional commercial measures so we maintain the strongest levers and controls over the performance of the service to members moving forward.
“We are working closely with Capita to ensure a successful transition but have always been clear that a final decision will need to be taken ahead of the scheduled transition date.”
Capita’s statement added: “Capita is preparing to take on administration of the Civil Service Pensions Scheme from 1 December 2025, working with the Cabinet Office to support a successful transition. We are proud to have been selected to deliver such a vital service, supporting over 1.5 million current and former public servants.”
Adrian Prandle, assistant general secretary of the FDA union, said the PAC report had drawn “stark – but unsurprising – conclusions" about the administration and contract management of the CSPS.
“It is essential the Cabinet Office ensures the transfer from MyCSP to Capita is a success and a reliable, speedy, and accurate service is urgently restored,” he said. “Any potential delay to the transfer must come with interim service guarantees to protect our members and other dedicated public servants.”
Prandle predicted “uproar” among CSPS members if the transfer of administration did not result in improved service levels.
Steve Thomas, deputy general secretary of the Prospect union, said the PAC report raised several important questions that the government should answer quickly and transparently to retain the trust of civil servants.
“How is it going to deal with remaining members drawing pensions who are affected by the McCloud Remedy; how is it going to ensure adequate customer service; and how is it going to put in place the contract management skills so that the provider is properly held to account and delivers on its obligations?” he asked.
Thomas said it was “simply unacceptable” that the current provider, MyCSP, had “been allowed to tail off its service at the end of the contract with no consequence”.
Cabinet Office pensions staff vote to strike
PCS, the civil service’s biggest union, has announced that a small number of members working for civil service pensions finance at the Cabinet Office have voted to strike in protest at being transfered to Capita as part of December’s changes.
The dispute involves three staff based at Priestley House in Basingstoke, who are responsible for handling critical payment processing, employer liaison, and authorisations.
The union said that planned industrial action could “severely disrupt” daily pension transactions, including quotes for redundancy and early retirement, and purchase order operations across government departments.
PCS general secretary Fran Heathcote said the Cabinet Office’s decision to outsource important responsibilities without consultation was a “gigantic kick to the face” to the union members.
“These pension finance workers must, like those staff administering the CSPS, be under the direct control of the Cabinet Office as civil servants to ensure proper governance and provide a decent public service,” she said.
PCS members at MyCSP are currently in their 16th week of strike action over the non-recognition of PCS ahead the transfer process to Capita.
This story was updated at 15:40 on 24 October 2025 to include a response from Prospect