Royal Mail pension scheme contract with Capita terminated after ‘failure to ship quite a few milestones’

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Your assist makes all of the distinction. Learn extra The contract for the brand new Royal Mail statutory pension scheme with Capita has been terminated, a Cupboard Workplace minister confirmed, after the companies group "did not ship quite a few milestones".

Talking within the Commons, Nick Thomas-Symonds said the federal government had repeatedly flagged Capita’s delays.

He pledged it "won't hesitate to behave decisively" to guard public servants’ pensions, assuring Royal Mail pensioners of efforts "to make sure continuity of service".

In a press release, Mr Thomas-Symonds stated: “Following a failure to satisfy vital transition milestones and a insecurity in Capita’s capability to implement and transition to the brand new working mannequin in a well timed trend, I’m saying at present to the Home that I've terminated the brand new Royal Mail statutory pension scheme contract with Capita.

“Capita had an 18-month planning window to arrange for the transition. They did not ship quite a few milestones, together with a failure to implement the required IT automation.

“The Cupboard Workplace repeatedly flagged delays in transition milestones.”

He added: “The safety and dignity of those that have devoted their careers to our public companies should not negotiable, and so they deserve a pension service that's dependable, environment friendly and safe.

“However for these ideas to be extra than simply phrases, they should be underpinned by rigorous accountability and refusal to just accept second finest.”

Capita has come below hearth in current months for its administration of pension companies, with some members of the Civil Service Pension Scheme (CSPS) failing to obtain common funds after the corporate took it over in December.

Mr Thomas-Symonds informed the Commons on Wednesday that assurances given to his division by the top of Capita over the CSPS haven't been met, branding the monetary affect on members “unacceptable”.

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<img src="https://static.independent.co.uk/2026/04/22/14/1fa63e7ae6c304c87cee7a595f6340b0Y29udGVudHNlYXJjaGFwaSwxNzc2OTUwODA1-2.83404381.jpg" srcset="https://static.independent.co.uk/2026/04/22/14/1fa63e7ae6c304c87cee7a595f6340b0Y29udGVudHNlYXJjaGFwaSwxNzc2OTUwODA1-2.83404381.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/04/22/14/1fa63e7ae6c304c87cee7a595f6340b0Y29udGVudHNlYXJjaGFwaSwxNzc2OTUwODA1-2.83404381.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Cabinet Office minister Nick Thomas-Symonds" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> Cupboard Workplace minister Nick Thomas-Symonds (PA) The minister added that he, together with the everlasting secretary of the Cupboard Workplace, had mentioned the takeover of the pension scheme.

Capita has a backlog of 24,000 excellent pension quotations and 1,500 unresolved complaints by MPs, a state of affairs Mr Thomas-Symonds branded “completely unacceptable”.

The Authorities has already offered £7.2 million in interest-free transitional assist loans to greater than 1,300 members.

Mr Thomas-Symonds stated: “We sought and got express private assurances that the transition could be dealt with with the utmost care and that any backlogs could be managed successfully.

“I’m sorry to say these assurances haven't been met.

“It's clear in any occasion that the supply of the service to civil servants for the reason that switch on December 1 final 12 months has fallen far in need of the required commonplace.”

He added: “I need to say that the tales we've got heard of members lacking mortgage funds and falling into hardship are distressing and completely unacceptable.

“No-one ought to should face such monetary anxiousness after a lifetime of devoted public service.”

The minister additionally stated a breach of the CSPS members’ information in late March was a “basic failure in information safety” and the Data Commissioner’s Workplace (ICO) has been knowledgeable, whereas the Cupboard Workplace has written to the chief govt of Capita to demand an account of the failure.

The Authorities can also be withholding “milestone funds” the place targets haven't been met.

He added: “The Cupboard Workplace has mandated a transparent restoration goal.

“Capita should clear all inherited arrears by the top of this month and restore service ranges to plain, contractually required ranges by the top of June this 12 months.”

<img src="https://static.independent.co.uk/2026/04/22/14/6760de3c904ddea9685cd694e0be253fY29udGVudHNlYXJjaGFwaSwxNzc2OTUwNzYy-2.83153873.jpg" srcset="https://static.independent.co.uk/2026/04/22/14/6760de3c904ddea9685cd694e0be253fY29udGVudHNlYXJjaGFwaSwxNzc2OTUwNzYy-2.83153873.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/04/22/14/6760de3c904ddea9685cd694e0be253fY29udGVudHNlYXJjaGFwaSwxNzc2OTUwNzYy-2.83153873.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Mr Thomas-Symonds assured Royal Mail pensioners the Government “will do all we can … to ensure continuity of service”" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> Mr Thomas-Symonds assured Royal Mail pensioners the Authorities “will do all we will … to make sure continuity of service” (PA) Capita took over the CSPS, which manages the pensions of 1.7 million public sector employees within the UK, together with establishments such because the Crown Prosecution Service, HM Income and Customs and the Ministry of Defence, in a seven-year deal in December.

In January, Capita informed the BBC it had anticipated a backlog of 37,000 instances when it took over the scheme, however the variety of excellent instances was 86,000.

By February, the Authorities introduced a restoration plan to deal with the “unacceptable service ranges” skilled by members, together with a assist mortgage scheme for these experiencing hardship.

Mr Thomas-Symonds informed MPs on Wednesday that Capita has supplied to cowl the prices of a circa-140 particular person Authorities surge staff despatched in to bolster operational capability, which he stated he's contemplating.

“My precedence is for taxpayers to not should foot the invoice for points which were attributable to the supplier, and is of no fault of the people who find themselves the beneficiaries of this scheme,” he added.

John McDonnell, Labour MP for Hayes and Harlington, stated: “It shouldn’t be a proposal. It must be a requirement that they cowl the price of the restoration prices.”

The previous shadow chancellor below Jeremy Corbyn urged the Authorities to terminate the CSPS contract with Capita and to switch the service “in-house”.

This was additionally referred to as for by Labour’s Clive Betts, deputy chairman of the Public Accounts Committee, who argued this might “stop these recurring issues with quite a lot of non-public sector suppliers, which at all times appear to go mistaken”.

Mr Thomas-Symonds stated he retains “all contractual choices open”.

He added: “I cannot hesitate to make use of the industrial levers which can be below this contract to drive efficiency. That's the reason I'm being as nicely, completely clear about that restoration of service by the top of June of this 12 months, that's what I'm upholding Capita to.”

Unite nationwide officer Dominic Hook stated: “As soon as once more, Capita has proved itself to be completely unfit to handle the pensions of hundreds of thousands of public sector employees.

“This newest in a litany of extraordinarily critical failures by Capita reveals why the Authorities’s manifesto promise to reverse outsourcing is extra vital than ever. Ministers have to hold that promise by bringing the CSPS again in-house.”

Steve Thomas, deputy common secretary of the Prospect union, stated it was turning into clear that outsourcing pensions contracts has been a “catastrophic failure” which must be reviewed.

“It's proper that Capita are going through penalties for failing to hit their targets but when they proceed to not ship as promised then the contract must be faraway from them,” he stated.

A spokeswoman for Capita stated: “Capita has administered the Royal Mail statutory pension scheme since 2018, and we are going to proceed to assist its 337,000 members throughout the transition interval, working intently with the Cupboard Workplace to make sure continuity of service for members.

“We're very sorry for the intense points which were raised relating to our efficiency on the Civil Service Pension Scheme and the affect on its 1.7 million members.

“We recognise the misery this has brought about and the power of feeling being expressed.

“We take full accountability for addressing these points. Our focus is on guaranteeing members obtain the service they anticipate and deserve, and on placing issues proper as shortly as attainable.”