A Broken Pensions System

Over recent months, my office has been supporting several constituents who have been directly affected by the ongoing failures in the administration of the Civil Service Pension Scheme (CSPS). 

Civil servants who have given decades of service to our country are now fearing they may lose their homes because they cannot afford their rent, having to ask family members for money to pay for food, or even being forced to apply for Universal Credit because they have been left without pension income for months.

For around 1.7 million current and former members, their experiences expose the very real human cost of what Capita initially described as “teething problems,” but which are clearly now systemic issues.

Since Capita took over, the Public Accounts Committee heard last month that the backlog has reportedly grown to more than 120,000 - with members waiting for over 15 hours on the phone only to be cut off, or Capita sending incorrect tax codes with shockingly high bills.

The Government have acknowledged that this is “utterly unacceptable,” so while I welcome the introduction of a recovery plan and hardship loan scheme, significant concerns remain about the woefully inadequate performance of Capita.

I have written to the Cabinet Office asking for urgent clarity on four key areas:

1. Backlog clearance: A clear timetable is needed for eliminating the pension‑processing backlog, with some members having waited since January 2025, and for restoring full-service levels across the scheme.

2. Support for affected members: The Government must set out what further measures it will implement to ensure individuals left without pension income, including those affected by the McCloud remedy judgement, receive immediate support while their cases are resolved.

3. Recovery plan: Assurance is required that the emergency loan scheme is being applied consistently, and that eligible pensioners are not wrongly refused access to support.

4. Accountability: The Government must confirm what actions are being taken to hold Capita accountable for the current failures, including the potential use of contractual penalties, returning the scheme to public administration, or other enforcement measures.

This comes just under two months after the deeply disappointing WASPI decision to deny compensation to 3.6 million women affected by changes to the state pension age, as the Government coldly phrased it, this would not be a “fair or proportionate use of taxpayer money.”

Together with the Equitable Life Scandal, these cases expose a system that that is failing to provide the security and just reward to people who have worked hard their whole lives.

I will continue to raise the cases of impacted members, call out the injustice, and push for the fair treatment and dignity that far too many have had swept from under their feet.