Unions Petition Downing Street on Pension Administration Insourcing

The handover follows ongoing issues that began before Capita assumed responsibility from MyCSP in December 2025. Problems include unpaid pension benefits and unresolved cases that predated the changeover. Tensions peaked in July when Capita failed to meet a July 6 deadline to resolve a backlog of 6,700 outstanding pension quotations for prior retirements. Additionally, more than 4,100 bereavement claims remained unaddressed by late June.

In response, the government suspended nearly £10 million in payments to Capita and announced plans to engage independent auditors and a specialist adviser to overhaul service delivery. Affected members have received financial assistance through hardship loans, while the government has added 140 extra staff to bolster operations. Capita admitted in July that its performance had been “not good enough,” particularly in handling bereavement, retirement, and quotation requests, and offered apologies to impacted individuals.

Prospect deputy general secretary Steve Thomas emphasized that the only sustainable fix is “to end this debacle by bringing the contract in-house at the first suitable opportunity.” Civil Service chief operating officer Cat Little stated earlier that the government was evaluating long-term solutions, including potential insourcing of administrative tasks. Thomas clarified that delays and hardship for retired civil servants began under the previous administrator, MyCSP, and worsened under Capita’s management.

The union also used the petition delivery to urge the government to designate a Cabinet Office minister responsible for civil service pensions—a role that has remained unfilled since the new prime minister took office. Without clear accountability, Prospect warns, efforts to resolve the crisis will remain ineffective. Thomas stressed: “The prime minister must act immediately to confirm this Minister so we can work with them to hold Capita to account.”