Select committee: Public Accounts Committee
Recommendation 16
49th Report - Administration of the Civil Service Pension Scheme
Published 24 Oct 2025
Addressed to HM Treasury
Public Accounts Committee Civil service pensions All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We questioned the Cabinet Office about how we can be assured that it had the capacity to ensure that contractors deliver. The Cabinet Office said that it is fairly confident it has the right expertise and capacity to manage the contract, and that the contract management team is significant in size, with around 60 FTEs overseeing outsourced pension arrangements.32 We inquired further how the Cabinet Office can be sure that MyCSP’s performance will not get worse towards the end of its contract, and that Capita will avoid getting into difficulties. The Cabinet Office stressed the importance of making a success of the transition. It asserted that it had made changes to the way in which it transitions as a result of previous lessons learned, and that it would impose financial penalties on Capita from December in cases of underperformance. The Cabinet Office said that it will reset its transition plan in September, and that it would not go through with the transition if it was not confident that the service levels would be maintained.33 TUPE negotiations and staff concerns
From: Public Accounts Committee, 49th Report - Administration of the Civil Service Pension Scheme (HC 888), 24 October 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Forty-ninth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 24 December 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Forth-ninth report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on the administration of the Civil Service Pension Scheme, but disagrees with those on union recognition by suppliers and on its commercial strategy for pension administration.
- On Remedy, the government agrees and says the Cabinet Office has provided 58,400 (44%) of impacted members drawing their pension with revised options. It expects to be "in a position to communicate" timescales "during the first quarter of 2026".
- On the transition to Capita, the government agrees and says the service transitioned on 1 December. It says a rollback option with MyCSP existed until 31 December 2025, with options to extend support to the end of May 2026 "should this be required".
- On contract management, the government agrees and says a Contract Management Policy is embedded, under which the Scheme, as a gold tier contract, requires a contract manager "qualified at expert level".
- The government disagrees on union recognition, stating that under the Employment Act 1982 it is "prohibited from forcing suppliers to recognise trade unions". It disagrees on commercial strategy, citing the Procurement Act 2023 and saying in-house options are reviewed early in procurement.