Bryn Davis (Lord Davies of Brixton) has been a pensioner for nearly 20 years but is not giving up on pensioners.
Last Tuesday, Bryn Davies was given the chance to deliver a question as to what progress had been done to improve the delivery of pension payments to civil servants . Here is the debate that the question kicked off. This blog has on several occasions asked why Capita was appointed in the light of its track record administering Government projects.
Accompanying this report I’ve included the PCS’ (Public and Commercial Services Union) union’s position, the following day.
Capita misses government’s deadline to deliver full terms of CSP contract
PCS union calls on the government to take action against Capita
Capita has officially missed the government’s 30 June deadline to deliver the full terms of its Civil Service Pensions (CSP) contract, the Public and Commercial Services (PCS) trade union has said.
The trade union said paymaster general Nick Thomas-Symonds announced in April that Capita was expected to have delivered the full requirements of the contract by the end of June, after it took over the administration of the scheme last December. The PCS union also noted cabinet office minister Satvir Kaur told parliament “all options” would be considered and that the government would not hesitate to take action and hold Capita to account.
In April, the government terminated Capita’s contract with the Royal Mail Statutory Pension Scheme, which led the PCS union to call on the government to also cancel Capita’s contract with the CSPS.
The PCS union urged the government to explain what action it will take against Capita and when members can expect the pensions service they had been promised.
The union noted members have experienced delays in processing pension cases, with around 1,500 of the most complex cases still outstanding. It also said there has been “poor” communication and “weak” accountability for escalated cases, with increasing evidence that the backlog is wider than previously realised.
In January, Capita issued an apology to CSPS members for the “challenges” they have experienced since the firm took over the contract. The PCS union also stated it had concerns the significance of the 30 June deadline was already being “downplayed“. The union noted staff from several teams at CSP are said to have informed the union they have been instructed to upload large volumes of data into the systems, despite there being known system and validation issues.
The PCS union said members believed this was being done to speed up processing and demonstrate progress towards the government’s deadline, despite concerns it could increase the risk of errors.
The union stated Capita’s missed deadline with the CSP raises questions about the government’s decision to award Capita the Synergy contract, which will see the firm provide payroll and HR services for more than 250,000 civil servants across numerous government departments. It added that given Capita has failed to meet important milestones on the CSP contract, it is “deeply concerning” that Capita has been given the responsibility for administering the pay of hundreds of thousands of civil servants.
PCS union general secretary Fran Heathcote said:
“The government set a clear deadline for Capita, and today that deadline has been missed. Ministers promised parliament there would be consequences if Capita failed to deliver, so we need to know what happens now.
“Thousands of people are still waiting for pension payments, retirement quotes and other vital decisions. Ministers must now explain how they intend to hold Capita to account. The only way to restore confidence is to strip Capita of this contract and bring the CSP administration back in-house.”
Civil Servants made by Capita to suffer in silence tell their stories
Dedicated workers abandoned in retirement to cope without pensions and with difficult circumstances share their experiences.
Meet Claire, Ian and Wendy whose stories are exceptionally difficult. But when it comes to retirees dealing with Capita, their abandonment has been cruelly normalised. Thousands of retiring and partially-retiring civil servants are yet to receive their overdue payments.
Now, Capita has also missed the Cabinet Office deadline of 30 June to get its services up to contractual standards.
Claire’s story
Claire from south Wales began plans for part-retirement last August and she’s not had a penny since that began in March. She said:
“I’m told I qualify for a hardship loan but why should I have a debt when it’s their mistake, even if it is interest free? Luckily, I’ve got family members who can help in the meantime. But it’s stressful.
“I have things that I want to do in life but I haven’t got the money. My daughter has some health issues and needs a walk-in shower but I need the money to pay for that. My hours in DWP have reduced so my wages are down but I don’t want to keep tapping family members if I can help it.”
Ian’s story
Capita told Ian from west London almost everything he wanted to hear – but he got next to nothing. He says:
“In 2021, I was diagnosed with incurable lymphocytic leukaemia so I’m on constant medication and am also due an operation for an enlarged prostate. So, last year I thought ‘at least I’ve made it to 60 – I’ll get my pension.’ In February, I was assured I would be paid by the end of the month but was told they couldn’t provide a cover loan and because I’d deferred by 8 years.
“I phoned again and was told monthly payments would start in March. I received a small lump sum and, because they’d noted my hardship and health, assured me that I would begin to actually receive my pension in two to three months’ time.
“I’d also been assured I’d be given a further percentage to tide me over until the middle of the month but Capita refused to tell me what percentage or why. Nothing came in. I still haven’t got a pension in payment. With blood cancer, I don’t have the energy a normal person would have.”
Wendy’s story
Wendy from East Midlands needs to reduce her working hours but is trapped between ill health and having to work full-time. She says:
“I’m unable to apply for partial retirement because I can’t even get registered on the Capita portal. I can’t access any information online or get through on the phone. I have several disabling conditions and am a contractual homeworker because of it. That’s the main reason I want to take partial retirement: pain, fatigue, and I’m getting old.
“So even without having to worry about getting to work, my attendance is poor. I am exceptionally concerned that I will be forcibly retired or dismissed before I can partially retire and will then be left penniless. I can’t afford to go part time and if I did it could well mess up my partial retirement plan.”