Unions Push to Bring Civil Service Pensions In-House

More than 14,000 individuals have signed a petition demanding the Civil Service Pension Scheme be managed internally rather than outsourced, with trade union Prospect handing the document to Number 10 on August 24, 2026. The initiative, supported by the Public and Commercial Services union, draws attention to persistent issues in pension administration that began before Capita assumed responsibility from MyCSP in December 2025.

Advocates cite ongoing delays in pension disbursements and unresolved claims that intensified after Capita failed to meet a July 6 deadline for clearing a backlog of retirement quotations. As of late June, over 6,700 past-retirement cases and more than 4,100 bereavement claims remained pending. In response, the government withheld nearly £10 million in payments to Capita, appointed independent auditors, and assigned a remedial adviser. Additional support, including staff reinforcements and hardship loans, was provided to affected members.

Capita admitted in July that its performance had fallen short, particularly in handling bereavement, retirement, and quotation requests, and issued an apology. Steve Thomas, Prospect’s deputy general secretary, emphasized that these challenges originated years earlier under MyCSP, leaving thousands of retirees in financial distress. He insisted that moving the contract back in-house is the only sustainable solution for both pensioners and taxpayers.

Civil Service chief operating officer Cat Little confirmed the government is reviewing its options, including the possibility of bringing the scheme in-house. The union has also called for transparency on which Cabinet Office minister now oversees civil service pensions, as no official has been designated since the prime minister’s appointment. Thomas stressed the need for immediate action to assign a ministerial lead, enabling the government to hold Capita responsible for its failures.

Thomas warned that prolonged delays risk further damaging public confidence, particularly among retirees already facing financial strain. The union’s campaign has gained momentum as evidence of Capita’s struggles accumulates, including the unresolved backlog and the £10 million payment suspension.