Committee publication · Correspondence · 9 February 2026
Letter from the Permanent Secretary at the Cabinet Office relating to the Civil Service Pensions Scheme recovery plan, 02 February 2026
From: Public Accounts Committee
Inquiry: Civil service pensions
Summary
The Cabinet Office Permanent Secretary updates the Public Accounts Committee on progress implementing a Civil Service Pensions Scheme recovery plan with Capita. The recovery involves a 150-person surge team deployed to clear a 15,000-email backlog and address critical failures: 8,500 retired members lack full entitlements, 3,000 are due to retire imminently, and 6,300 death-related cases are pending. The government is offering interest-free loans (£5k–£10k) to affected members and targets February–March 2026 milestones for critical cases.
Key findings
- 8,500 pension scheme members who have retired have not received full entitlements; approximately 3,000 more are due to retire shortly with accepted quotes.
- 6,300 open death-related cases exist, with Capita estimating 75% inherited from MyCSP and ~300 relating to death-in-service.
- 150-person surge team deployed to Capita (alongside existing 500-person staff) to clear ~15,000 emails and 20,000 contact requests.
- Government will provide interest-free loans of £5,000–£10,000 (exceptionally) to retired staff and current employees awaiting pension payments, with repayment once benefits commence.
- Recovery plan structured in three-week sprints (January–March 2026) with priority milestones: death-in-service cases by 12 February and ill-health retirements by 27 February.
Tone
ProceduralTopics
Key actors
Catherine Little CB, Angela MacDonald, Capita, Public Accounts Committee, Cabinet Office, HM Treasury, National Audit Office
Notable line
“All existing pensions in payment continue to be paid on time. b. Approximately 8,500 members who have already retired have not yet received full pension entitlements i.e.”
Key Quotes
“The aim of the recovery plan is to stabilise the pensions administration services and bring them back in line with expected service standards for members of the Civil Service Pension Scheme.”
“A 150-person surge resource team has been deployed by the government into Capita to initially help clear the backlog of circa 15,000 emails and 20,000 contact requests and increase processing speed.”
“Ministers have considered that it is appropriate and necessary for us to provide interest-free loans of £5k, and exceptionally up to £10k, to staff who have retired within the proceeding 12 months and have yet to receive pension payments”
“In my judgment as Accounting Officer, I have concluded that we should consistently adopt a single loans policy and delivery model for this scheme across the Civil Service”
Source · parliament.uk record ↗