Civil service unions are escalating calls for the termination of Capita’s contract managing the Civil Service Pension Scheme. This demand follows the government’s decision to end Capita’s role in the Royal Mail pension scheme, citing significant delivery issues.
Government’s Action Against Capita
Nick Thomas-Symonds, the Cabinet Office minister, made this announcement during a recent session in Parliament. He indicated that the Royal Mail contract was terminated due to Capita’s failure to meet critical transition milestones. Thomas-Symonds expressed a lack of confidence in Capita’s ability to effectively implement the new operating model.
In 2024, Capita had secured a six-year renewal of the Royal Mail Statutory Pension Scheme contract, starting in 2026, with an option for a two-year extension. Despite this, Thomas-Symonds noted they had an 18-month preparation period but fell short on many deliverables, especially in necessary IT automation.
Significant Shortcomings and Investigations
In his address to Parliament, Thomas-Symonds discussed the unfolding crisis surrounding the administration of the civil service pension scheme. Since transferring the service from MyCSP to Capita on December 1, there have been notable deficiencies. He stated that Capita had not met the required service standards and failed to manage backlogs effectively.
- Capita was made aware of potential backlogs, planning for up to 100,000 pending cases by July 2025.
- Essential IT automation and portal functionalities were not delivered upon service launch.
- The Cabinet Office is investigating liabilities relating to transition failures between Capita and MyCSP.
In response to these issues, Thomas-Symonds asserted that direct actions have been taken against Capita. This includes withholding milestone payments and a firm stance on demanding service level restoration by the end of June.
Union Responses and Demands
PBS General Secretary Fran Heathcote responded to the government’s actions, emphasizing the significance of terminating Capita’s contract. She highlighted the distress caused to civil servants and pensioners due to ongoing delays and errors in payment.
Heathcote stated, “It is simply unacceptable that this is allowed to continue when a clear alternative exists.” She advocates for bringing civil service pensions back in-house to resolve ongoing failures rapidly.
Additionally, Steve Thomas, Deputy General Secretary of the Prospect union, echoed these sentiments. He emphasized the need for the government to take swift action if Capita fails to meet its obligations, highlighting the real hardship caused by the ongoing issues affecting retirees.
- Challenges could lead to delays in retirement for many.
- Outsourcing has proven to be a catastrophic failure requiring reevaluation.
It is clear that urgent actions are necessary to ensure the efficiency and reliability of the Civil Service Pension Scheme. The unions’ pleas for a review of contracts and a return to in-house management reflect widespread concerns regarding contractor performance and service delivery.
