Ian Byrne

Ian Byrne

Labour — Liverpool West Derby

Speaking in the House of Commons on 15 September 2026

Debate

Civil Service Pension Scheme

Contribution

I agree completely with my hon. Friend. I will not be taking any more interventions, because people have put in to speak. Another of my constituents, Karen Morrow, took early retirement at the end of June. She will not receive a state pension for another two years. The civil service pension she earned was supposed to supplement her income. After two years of delay and inaction, she was told that her documents would be uploaded by 4 August and she might receive her pension by the end of that month. August came and went, and Karen received nothing. She has chased every single week. On her latest call, she waited three hours to be told only her that her case would be escalated—with no payment, no explanation and no reliable timescale. Karen has been left without an income since the end of June. The circumstances of the constituents’ cases I raise may differ in nature, but the pattern is the same: they earn their pension, yet carry the debt, uncertainty and stress created by a failing system. These are not minor administrative errors; they are major failures with serious human consequences. It is not just my constituents and many others around the country waiting for their pensions who have been failed by Capita; it is Capita’s own staff as well. Workers employed by Capita, including many in my city, have reported to the Public and Commercial Services Union that they are suffering due to the company’s failure to deliver on the contract. They struggle physically and mentally as a result of inadequate staffing levels, insufficient training, poor processes, inappropriate IT systems and constantly changing demands. More than half of Capita’s workers who took part in a PCS survey said that they experience stress every day or most days, with a quarter responding that they are frequently extremely stressed. One PCS member described their day-to-day experience: “every day is draining and it’s always a massive relief when my working day is over.” Many are resigning because working conditions have become intolerable. More than 75% told PCS that they are considering leaving their roles. Is there any wonder we are in this mess? We know that Capita has failed in its duty to run the civil service pension scheme, but clearly it is also failing its own staff. The Government’s actions confirm the scale of the crisis. In February, Ministers said that they were working to bring most aspects of the service back to expected levels by June. That deadline was missed. In July, after sending two separate letters to the Cabinet Office in December and March, the Government confirmed, in response to a written parliamentary question of mine, that Capita had failed to restore standard contractual service. Ministers rightly withheld the £9.9 million, deployed independent auditors, appointed a remedial adviser at Capita’s expense and recovered the cost of Government surge teams. Last Friday, Karl Flinders from Computer Weekly, having covered the scandal over the last year, reported that the Cabinet Office is establishing a team with direct access to Capita’s systems to independently validate its data. That is welcome, but is it not extraordinary that the Government have relied on Capita’s own management information in the first place? The contractor under scrutiny has been supplying the figures by which its performance is judged. How can Capita possibly be held to account in the way that it clearly needs to be? Despite those repeated interventions by the Government, on 7 September more than 1,000 bereavement cases were still more than 100 days old, alongside 308 death-in-service cases and 288 payment cases. Around 900 retirement quotations also remained from the backlog that Capita committed to clear. Bereavement, death-in-service and retirement are not cases on a spreadsheet; these are human stories—people facing some of the most difficult moments in their lives. The sequence is clear: a deadline was set, missed and followed by emergency measures, yet hundreds remain trapped in the backlog. Progress is welcome, but progress is not resolution. The question is no longer whether there has been a serious failure—that is absolutely beyond dispute. The question is when will civil servants, pensioners and bereaved families finally see the end of it? I have raised this repeatedly with Ministers; sought Cabinet Office engagements with the PCS general secretary, Fran Heathcote; supported parliamentary motions; and tabled questions on the backlog, compensation, sanctions and bringing the service back in-house. I secured this debate because constituents are still coming to me in absolute distress. This brings us to the fundamental question of outsourcing. We are told that outsourcing delivers efficiency and transfers risk, but when Capita failed, civil servants cleared the backlog, employers provided hardship funds and Government-appointed auditors and MPs became an escalation route, so where exactly was the risk transferred? Administration was outsourced; responsibility was not. A private company holds the contract while the public sector picks up the pieces, and all the while our constituents carry the consequences. This is the failed ideology of outsourcing laid bare: born under Thatcher, followed by successive Governments of all colours in the name of efficiency while delivering absolutely the opposite and putting the burden on ordinary people. Whether it is Fujitsu in the case of the Post Office Horizon scandal, or even our failing water industry, how many more examples must we bring before this House before the political establishment finally accepts that this experiment has completely failed? Today I ask the Minister for three clear commitments: recovery, compensation and accountability. First, on recovery, will the Minister set out a firm dated timetable for returning the scheme to normal service? That must include clearing overdue cases and urgently prioritising those without income and those with serious welfare, bereavement and ill-health cases. As part of that, the Government must also commit to publishing the number and age of outstanding cases until that has been achieved. The parliamentary caseloads that MPs have received on this issue should also be highlighted. Secondly, there is compensation. When failure creates debt, higher borrowing costs, mortgage problems or reliance on hardship support, people should not face another battle to regain the position they would have been in had the service worked as it should have. Will the Minister provide a clear, simple and accessible route to compensation for financial loss? Thirdly, there is accountability. The Government have announced a public interest test under which contracts worth more than £1 million will be assessed for in-house viability before renewal. If ever a service justified considering whether public provision would be more resilient, reliable and accountable, surely this is it. After months of failure under the administration of Capita and every indication that problems will persist, surely we have our answer. Will the Minister commit to bringing the administration of the civil service pension scheme back in-house, to put it back in the service of the people it exists to support? This is not an attack on the staff working hard to clear the backlog; it is about the system and the political choices that have put us in this position. David should be able to reduce his hours to care for his elderly parents, James should not fear losing his home, Karen should not be left without an income and spending hours chasing her pension, and the other 32 constituents who contacted me should not need their Member of Parliament simply to access the pension service they were promised and have earned. Civil servants have served our country and our communities; they have paid into their pensions and planned their futures in good faith. They have kept their side of the bargain; it is time for the Government and the system for which they are responsible to keep theirs. I ask the Minister for three things: recovery, compensation and accountability. The administration may have been outsourced, but responsibility cannot be outsourced with it. It is time for the system to do its part for our civil servants.

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