The Public Accounts Committee has asked the Cabinet Office to provide a “reliable” date for the recovery of the Civil Service Pension Scheme as calls grow to bring the service back in-house.
Capita, which took over administration of the CSPS in December, with crisis quickly ensuing, agreed with the Cabinet Office in January that it would recover the scheme to contracted service levels by the end of June.
However, PCS has claimed the Cabinet Office told unions recently that this pledge would not be met and that the surge civil servants brought in to aid the recovery will need to remain in place beyond this month. The Cabinet Office has not confirmed this claim. Last week, Capita said it was eyeing up a "more normalised" service by the end of June which "may not represent full recovery across all services".
PAC chair Sir Geoffrey Clifton-Brown has written to Cabinet Office permanent secretary Cat Little to seek “reassurance for worried pensioners and their dependents” on “when target service levels will be restored for the Civil Service Pension Scheme, in line with HMG’s contractual arrangements with Capita”.
Citing PCS's claim, he said: “I really think it is incumbent on the Cabinet Office to provide a proper and reliable date so that scheme members can plan their future with some certainty.”
Clifton-Brown has requested this information by 24 June, ahead of a joint scrutiny session it is holding with the Public Administration and Constitutional Affairs Committee on 8 July, where Cabinet Office senior officials and minister for the Cabinet Office Nick Thomas-Symonds will be questioned on the pension crisis.
As uncertainty grows over whether Capita will meet the end-of-June target, Prospect has joined PCS in calling for the Civil Service Pension Scheme to be insourced.
The two unions have jointly sponsored a petition, which has been signed by more than 4,000 people. Addressed to Cabinet Office minister Nick Thomas-Symonds, it calls for the government to:
- Bring civil service pension administration back in-house
- Establish a compensation scheme for all who are affected by pension administration failures
- Clear the existing backlog as a matter of urgency, prioritising ill-health retirees, bereaved families, and those facing financial hardship
- Suspend any further contract awards involving Capita until a full review of the procurement process and the company's service delivery performance has been completed
- Honour the government's commitment to deliver the greatest wave of insourcing in a generation
Steve Thomas, Prospect’s general secretary, said: “The ongoing failures in the administration of civil service pensions are causing real distress for our members. Civil servants who have dedicated their careers to public service should not be left facing delays, uncertainty and poor communication when it comes to their pensions.
“Prospect has consistently pushed for those affected to be properly compensated, and for urgent practical steps to protect the most vulnerable people caught up in these failures, including ill-health retirees, bereaved families and those facing financial hardship.
“The government must take urgent action to fix the backlog, compensate those affected and bring pension administration back in-house.”
CSW understands Prospect’s position is that the administration of the scheme should not be brought back in-house immediately, but when Capita’s contract ends, to avoid disruption at this critical time.
New guidance published by the Cabinet Office yesterday, introducing a public interest test for the procurement and re-procurement of all contracts worth more than £1m, means the government will have to consider the merits of bringing the scheme back in-house when the current contract comes to an end.
The FDA, which represents senior and mid-ranking civil servants, has not joined the calls for the contract to be insourced.
Adrian Prandle, the union’s deputy general secretary, said: “Very simply the contracted administrators have not been doing a good enough job. The risks of changing administration arrangements again right now are not insignificant.
“At the very least we would want to see a stable service delivering what members expect, and evidence that an alternative is viable, otherwise the injustice and disruption will continue. This is affecting people's lives in very significant ways.
“Who administrates the scheme is not as important as how they administrate it for committed public servants. Our focus right now is on Capita and their administration, while finding a resolution to this crisis as quickly as possible.”
Cabinet Office to assess the situation at the end of the month
In a press release published on Monday, PCS said it had been informed in a meeting on 12 June that "not only will the service fail to meet contractual standards by the ministerial deadline, but the extensive recovery operation established to prop up the failing contractor will also need to continue beyond that date".
A source at Prospect told CSW: "The rate at which Capita is clearing the backlog for pension quotes, and even their own statements about service levels from July, both highly suggest that the end of June target will be missed."
CSW has asked the Cabinet Office about PCS's claim.
A spokesperson for the department said: "The service levels following the move to Capita have been unacceptable. An urgent recovery plan is underway, and our immediate priority is to stabilise service levels and give current and former civil servants the service they deserve.
"To this end, the minister for the Cabinet Office Nick Thomas-Symonds set a deadline of the end of June for significant progress to have been made in this area, and we will assess the situation at the end of the month.
"We will continue to use all available commercial levers to hold Capita to account and ensure they deliver for both members and taxpayers."
Yesterday, the Cabinet Office unveiled new guidance on procurement aimed at "rebuilding" departments' in-house capability to enable more services to be brought in-house.
A Capita spokesperson said: “We are sorry for the worry and frustration experienced by any members. The improvement plan is Capita’s highest priority. Our focus is on ensuring members of the Civil Service Pension Scheme experience the service they deserve.
“Since December 1 2025 Capita has facilitated payment of £4.1bn in pensions benefits to members. Our call answer time for the most critical cases is now under 97 seconds. We are in daily communication with the Cabinet Office to provide status updates and will continue to work closely with them to improve service delivery.”