Written questions by McDonnell.

Whether HMRC has made a comparative assessment of the cost of alternative models based on permanent civil service staffing with external Managed Service Provider provision.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

If she will set out the range of possible outcomes of HMRC’s joint evaluation with PCS of the pilot of the Managed Service Provider within the Customer Services Group.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

What assessment HMRC has made of the long term operational need for a Managed Service Provider within the Customer Services Group beyond the current proof of value trial.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

What criteria she will use to determine whether the Managed Service Provider model is expanded, modified, or discontinued following the joint evaluation with the PCS Trade Union.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

Food and Rural Affairs, whether she has held discussions with Ofwat on the form of public consultation on a deal for the control of Thames Water.

We are working closely with Ofwat, who is evaluating the consortium’s proposals for Thames Water, to ensure that the best interests of customers and the environment are protected.

Who is responsible for the regulation of sports and non-financial spread bets in the UK.

The Financial Conduct Authority (FCA) has clarified that non-financial spread betting products are not financial instruments, and that the FCA’s regulatory framework does not account for gambling activity in relation to events which are not connected to financial markets. Furthermore, the Gambling Commission does not licence products whose name, branding or marketing contain language associated with financial products, and understands spread bets of all kinds to potentially fall within the FCA’s remit. The FCA advises that consumers who take positions in sports or other non-financial betting products should not assume they are eligible for financial compensation schemes or other financial regulatory protections.

Commonwealth and Development Affairs, what assessment she has made of the effectiveness of proposed staff cuts of staff employed as research analysts in the Middle East, in the context of the developing situation in the countries impacted; and if she will make a statement.

The FCDO2030 reform programme is designed to ensure the department is able to rise to the challenges of a rapidly changing world, and a constrained fiscal environment. This is an unprecedented transformation, driven by the objective to become a more agile, technologically enabled organisation, focused on the UK's strategic priorities, including peace, stability and security in the Middle East. The FCDO remains in regular consultations with the Trade Union side on its reform proposals.

Commonwealth and Development Affairs, what discussions she is having with relevant trade unions on her Department’s reorganisation proposals; and if she will make a statement.

The FCDO2030 reform programme is designed to ensure the department is able to rise to the challenges of a rapidly changing world, and a constrained fiscal environment. This is an unprecedented transformation, driven by the objective to become a more agile, technologically enabled organisation, focused on the UK's strategic priorities, including peace, stability and security in the Middle East. The FCDO remains in regular consultations with the Trade Union side on its reform proposals.

What estimate his department has made of the number of Disabled people who have lost employment due to delays or reductions in Access to Work support.

The Department does not collect such data as the programme only supports people in, or about to start, employment.

What steps his Department is taking to ensure that Access to Work enables Disabled people to remain in employment.

In the Pathways to Work Green Paper, we consulted on the future of Access to Work and how to improve the scheme so that it helps more disabled people in work. We are considering all aspects of the scheme as we develop plans for reform following the conclusion of the consultation. In addition, available administrative data and management information will be utilised in shaping any proposals. We have recently concluded (November) the Access to Work Collaboration Committees, in which we engaged with a range of stakeholders, including DPO representatives and lived experience users, to provide discussion, experience, and challenge to the design of the future Access to Work Scheme.

Whether Access to Work support worker funding rates fall below the cost of employment once National Insurance, pension contributions and holiday pay are included.

We do not hold data on the full employment costs of all Support Workers, including National Insurance, pension contributions and holiday pay. This is not information we routinely collect. When setting our indicative payment rates, we aim to ensure value for money for taxpayers while continuing to provide effective support for disabled people in work. Current Access to Work rate cards can be found on GOV.UK, where the latest versions are published. For the most up to date information –https://www.gov.uk/government/publications/access-to-work-guide-for-employers

What assessment he has made of the potential merits of compensating people who were unable to pay (a) mortgages, (b) credit card bills and (c) other household bills due to delays in payments from the Civil Service Pensions Scheme.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme to Capita in November 2023.The delays facing scheme members are unacceptable, and no former civil servant should face financial hardship as a result. There is a robust recovery plan in place to ensure normal service can resume as soon as possible.Arrangements are in place for interest-free bridging loans of up to £5,000 (and up to £10,000 in exceptional cases) to most recent retirees facing payment delays. This is alongside interim lump sum payments being made to provide immediate funds to retiring members.Interest will be paid on delayed benefits to avoid financial loss by members. In addition, the existing statutory complaints process evaluates claims for financial losses, as well as distress and inconvenience caused, on a case-by-case basis to determine whether compensation is due. This ensures that any retiree who provides evidence of extra costs, such as bank penalties or interest charges caused by the delay, is fairly assessed. This process is run in accordance with the standards set by the Pensions Ombudsman. The Cabinet Office is working with Capita to ensure this process is applied as efficiently as possible.

What steps she is taking to ensure that HMRC adequately interprets the provisions of the (a) McCann report and the (b) Government's response, in the context of support for people affected by the Loan Charge.

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating to give HMRC the power to administer a new settlement opportunity. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann. As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes offering flexible payment terms where people need more time to pay their liabilities. The Government takes the wellbeing of all taxpayers very seriously. Vulnerable customers can make use of HMRC’s well-established Extra Support Service.

Whether the cost of resolving the McCloud remedy cases is included in the £239 million contract with Capita to manage the Civil Service Pension Scheme.

The £239 million contract with Capita covers the day-to-day management of the Civil Service Pension Scheme, but it does not include the specific cost of resolving the remaining McCloud remedy cases. The Cabinet Office is funding this complex rectification work through a separate, dedicated project, Remedy Project 7, at an additional cost of £45 million.As scheme manager, the Cabinet Office is meeting this cost directly to fulfil its legal obligation to resolve the age discrimination identified by the courts. By treating this as a distinct project, the department ensures greater accountability for the remedy's delivery while preventing these complex legacy cases from impacting "business as usual" pension services for other members.

What steps HMRC is taking to support people affected by the Loan Charge.

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating to give HMRC the power to administer a new settlement opportunity. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann. As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes offering flexible payment terms where people need more time to pay their liabilities. The Government takes the wellbeing of all taxpayers very seriously. Vulnerable customers can make use of HMRC’s well-established Extra Support Service.

What estimate he has made of the monthly cost of civil servants working on the Civil Service Pensions Scheme recovery plan for each of the next 12 months.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme (CSPS) to Capita in November 2023 under the previous government. The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve. While HM Government is bearing the initial costs to protect vulnerable members and restore service requirements, it has not provided a fixed monthly estimate for the next 12 months. This is because formal commercial discussions with Capita Pensions Solutions Ltd in relation to the costs of this government intervention will commence once the service has successfully stabilised. We are applying contractual levers available to us to deal with performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery. For example, existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.The Cabinet Office does not provide training to staff employed by Capita Pensions Solutions Ltd; instead, the contractor is responsible for ensuring its workforce meets the required proficiency standards. Staff must complete a training programme covering both systems and soft skills, with mandatory sign-offs required before they are permitted to handle specific case types. For sensitive cases involving bereaved individuals, Capita utilises a dedicated team where staff only progress to these complex queries after passing rigorous performance assessments.

Whether his Department is providing training to staff employed by Capita Pensions Solutions Ltd in dealing with cases involving bereaved individuals.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme (CSPS) to Capita in November 2023 under the previous government. The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve. While HM Government is bearing the initial costs to protect vulnerable members and restore service requirements, it has not provided a fixed monthly estimate for the next 12 months. This is because formal commercial discussions with Capita Pensions Solutions Ltd in relation to the costs of this government intervention will commence once the service has successfully stabilised. We are applying contractual levers available to us to deal with performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery. For example, existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.The Cabinet Office does not provide training to staff employed by Capita Pensions Solutions Ltd; instead, the contractor is responsible for ensuring its workforce meets the required proficiency standards. Staff must complete a training programme covering both systems and soft skills, with mandatory sign-offs required before they are permitted to handle specific case types. For sensitive cases involving bereaved individuals, Capita utilises a dedicated team where staff only progress to these complex queries after passing rigorous performance assessments.

What assessment he has made of the potential merits of recovering the total cost of civil servants supporting the Civil Service Pension Scheme recovery plan from Capita Pensions Solutions Ltd.

The Cabinet Office awarded the contract to administer the Civil Service Pension Scheme (CSPS) to Capita in November 2023 under the previous government. The issues and delays facing a number of civil servants and pension scheme members in receiving their pension quotes are unacceptable. I want to reassure you that this Government has taken firm action to help put things right as soon as possible. We have agreed a clear recovery plan with Capita, which includes specific milestones and accountability targets for delivery. For priority cases, we have deployed additional resources and improved communication with affected colleagues, so that staff, both former and serving, receive the quality of service and support they deserve. While HM Government is bearing the initial costs to protect vulnerable members and restore service requirements, it has not provided a fixed monthly estimate for the next 12 months. This is because formal commercial discussions with Capita Pensions Solutions Ltd in relation to the costs of this government intervention will commence once the service has successfully stabilised. We are applying contractual levers available to us to deal with performance failures, and we continue to explore all commercial avenues to hold them to account for the quality of their delivery. For example, existing Key Performance Indicators (KPIs) have been enhanced and strengthened to deliver improved performance and higher penalties for failure, including financial penalties. These have already applied in respect to Capita’s performance with recent issues and delays in administering the Civil Service Pension Scheme.The Cabinet Office does not provide training to staff employed by Capita Pensions Solutions Ltd; instead, the contractor is responsible for ensuring its workforce meets the required proficiency standards. Staff must complete a training programme covering both systems and soft skills, with mandatory sign-offs required before they are permitted to handle specific case types. For sensitive cases involving bereaved individuals, Capita utilises a dedicated team where staff only progress to these complex queries after passing rigorous performance assessments.

When he will publish the Strategic Plan for the DWP Estate, and if he will make a statement.

The Department’s Strategic Plan for the DWP Estate is publicly available. It was most recently updated in December 2025. I would direct my Right Honourable Friend, the Member for Hayes and Harlington, to the publication on GOV.UK: Department for Work and Pensions Strategic Asset Management Plan - Executive Summary - GOV.UK.

What estimate she has made of the number of people subject to the loan charge who will have their cases settled following the independent review of the loan charge.

I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841 and 109842.