Capita to be questioned on Civil Service Pension Scheme failures by PAC
The Public Accounts Committee (PAC) will hold a brief session with the National Audit Office to discuss its budget estimate for the upcoming year, before hearing from the senior leadership of outsourcing company Capita on the recent disruptions to the Civil Service Pension Scheme.
Meeting details
The session will begin with a brief hearing in which the Committee will ask questions about the NAO’s own budget for 2026-27. The PAC, which has a statutory role in considering and approving NAO’s Main Estimate, will then formally decide whether to approve the NAO’s proposals, after its own evidence session in due course.
The main body of the session will then be held on the civil service pension scheme. Emergency hardship loans to have had to be offered to public sector staff in response to serious issues affecting members of the civil service pension scheme, of which Capita took over administration at the end of last year.
Potentially thousands of recently retired civil servants have been left waiting for their pension payments. In response, the government has confirmed that interest-free “hardship loans” of up to £10,000 will be offered to the thousands of people experiencing financial hardship as a result of the failure.
In a joint statement with the Cabinet Office, Capita has said it is working to resolve the most urgent cases by the end of February. The PAC warned in October 2025 of a clear risk that Capita would not be ready to take over administration of the scheme.
The PAC will hear from the representatives of Capita as it explores the response to this incident and the potential long-term impacts. MPs could also explore the impact this issue has had on voluntary exit schemes across multiple government departments, which many had seen as a critical aspect of their savings plan for next financial year.