PAC launches new inquiry into CSPS crisis

The Public Accounts Committee (PAC) has launched a new inquiry into the ongoing administration issues at the Civil Service Pension Scheme (CSPS).

Its inquiry will be informed by the National Audit Office’s (NAO) upcoming report on the transfer of the CSPS administration to Capita.

Capita took over administration of the CSPS from MyCSP on 1 December 2025 under a seven-year contract worth £239m.

In a recent update, the Civil Service Pensions Taskforce revealed the CSPS had 150,000 outstanding administration cases, as at 5 October 2026, and will miss the deadline to complete its 2015 McCloud remedy programme.

The NAO’s report will consider the status of the scheme and transition arrangements at go-live in December 2025; how Capita has performed in administering the scheme, and the impact on member experience, since then; and how the Cabinet Office has exercised its responsibilities for oversight of the scheme both prior and following the transition to Capita.

The PAC will also be taking its own written and oral evidence during the inquiry, with further announcements to be made “in due course”.

The committee noted that it had warned in its report on successive government failures in the CSPS’ administration of a risk that Capita would not be ready to take over the administration of the CSPS.

It has held three evidence sessions on Capita and the government’s attempts to address the issues, helping inform the government’s announcement in the Budget to mitigate the impact of the CSPS administrative delays on bereaved families.

“In response to the alarming reports of hard-working civil servants being thrown into financial uncertainty following Capita’s takeover of the CSPS, we have held a number of evidence sessions with both the top leadership of Capita, and the civil servants and ministers of the Cabinet Office who have ultimate responsibility for overseeing the contract,” said PAC chair, Sir Geoffrey Clifton-Brown MP.

“Over and over again, promises have been made and broken by Capita, to our faces in formal evidence sessions, that they will get a grip on what has gone wrong.

“As a result, we are launching an inquiry, which will be informed by the authoritative factual basis provided by the NAO, which supports the scrutiny work of this committee.”



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