Unions demand Civil Service pension contract return to government control

The administration of the Civil Service Pension Scheme has escalated into a major dispute, as the unions Prospect and the Public and Commercial Services union presented a petition with over 14,000 signatures to Downing Street on August 24. This action follows ongoing frustrations over delayed payments and unresolved claims, which the unions insist require a lasting solution: transferring the contract back to government control.

Issues with the scheme existed before Capita took over from MyCSP in December 2025, but the situation deteriorated after the company failed to meet a July 6 deadline to resolve 6,700 pending pension quotes and 4,100 outstanding bereavement cases. By late June, the government had suspended nearly £10 million in payments to Capita and brought in independent auditors and a specialist adviser to enforce improvements.

In July, Capita acknowledged its service had fallen short, particularly for retirement and bereavement claims, and expressed regret to affected members. The government has since offered hardship loans to impacted individuals and deployed 140 extra staff to support the service. However, unions maintain that the core problem remains unaddressed.

“The only long-term solution that will work for scheme members, and taxpayers, is to end this debacle by bringing the contract in-house at the first suitable opportunity,” declared Steve Thomas, deputy general secretary of Prospect. This demand aligns with broader calls for clarity on which Cabinet Office minister now holds responsibility for civil service pensions. Since the prime minister’s appointment, no minister has been officially designated for this role, creating obstacles for accountability.

Thomas further stated that the prime minister must immediately name the responsible minister to enable collaboration in holding Capita accountable. At the time, Civil Service chief operating officer Cat Little said the government was considering how scheme members could best be served in the long term, including the potential insourcing of administration. The government has yet to respond to the petition or provide a schedule for bringing the administration in-house.

Pressure on the government continues to grow. The petition’s delivery represents the latest step in a conflict that has left thousands of retired civil servants in financial difficulty while Capita retains the contract.