Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Rejected
Staff uncertainty and strike action threaten pension scheme transition due to TUPE issues
Recommendation
On 24 June 2025, MyCSP staff who are members of the PCS union announced six weeks of strike action planned to take place in the period preceding the transition in protest at the lack of PCS involvement in Transfer of Undertakings (Protection of Employment) (TUPE) negotiations.34 TUPE regulations are intended to protect employees’ rights when they transfer to a new employer. MyCSP said that the decision to award the contract to Capita had driven uncertainty among staff and increased turnover rates. The Cabinet Office lists staff retention as a key risk to be managed as part of the transition35 and identified staff shortages as being partly responsible for performance failures in 2024 and the decline in contact centre response times.36
Government Response Summary
The government disagrees with the recommendation to ensure suppliers recognise employee voices through union recognition, stating it's prohibited from forcing suppliers to recognise unions under the Employment Act 1982, although the Social Value Act ensures fair working conditions, including the right to join a union.
Government Response
Rejected
HM Government
Rejected
4. PAC conclusion: In order to ensure a smooth transition from MyCSP to Capita it is important that appropriate consideration is given to the rights of staff members transferring across. 4. PAC recommendation: The Cabinet Office should set out in its Treasury Minute response what its approach is to ensure that suppliers that it contracts with are committed to giving adequate recognition to the voice of employees, for example, through union recognition. 4.1 The government disagrees with the Committee’s recommendation. 4.2 The Cabinet Office utilises the Model Services Contract for contracts of significant value (over £20 million). Within the contract there is a clause for Social Value that successful bidders must comply with. 4.3 The Social Value Model was updated in March 2025, The Social Value Model is a menu of options from which In-scope Organisations select the most appropriate social value outcomes and criteria for their contract. 4.4 Under the Social Value Model on GOV.UK the first mission covers fair working conditions and makes reference to trade unions in 2 sections under ‘Model award criteria’: • Fair working conditions. • Identifying and managing the risks of modern slavery. 4.5 These sections ensure that new workers are informed of their right to join a trade union and demonstrating that the contract workforce: has access to an independent democratic trade union or other forms of worker representation and has access to grievance mechanisms to report incidents or suspected incidences of modern slavery relating to the contract through whistleblowing and reporting. 4.6 In conclusion: • Under the Employment Act 1982 it is prohibited from forcing suppliers to recognise trade unions. • The Model services contract states that suppliers must abide by Employment law. • The Social Value Act states that workers must have fair working conditions including the right to join a trade union or other forms of worker representation but does not mandate that suppliers have to recognise a trade union.