Capita and Cabinet Office Leaders Launch Plan to Address Pension Crisis
Adolfo Hernandez, the Chief Executive of Capita, and Cat Little, the permanent secretary of the Cabinet Office, have issued a public apology concerning significant delays affecting the Civil Service Pension Scheme. They acknowledged the distress and financial difficulties these delays have caused for pension members.
Addressing the Pension Crisis
In their official statement, Hernandez and Little emphasized that the service provided to members falls short of expectations. They remarked, “This is not the service members deserve.” The leaders assured that both Capita and the Cabinet Office are committed to resolving these issues promptly.
Background of the Issue
- Capita took over pension scheme administration on December 1, inheriting a backlog of 86,000 cases.
- This backlog led to increased call volumes and complex queries, complicating the resolution process.
Recovery Efforts
To tackle the backlog, a specialized team under Angela MacDonald from HMRC has been established in conjunction with the Cabinet Office. This team is responsible for overseeing a recovery plan focused on immediate solutions.
Priority Actions Outlined
- Immediate Focus: Cases related to bereavement, ill-health retirements, and financial hardships are to be prioritized.
- Resource Augmentation: Over 150 new staff members will be added to Capita, raising the total workforce to over 650.
- Financial Support: The Cabinet Office is coordinating with various departments to implement interim support for those facing financial difficulties due to payment delays.
Capita aims to restore service levels for urgent cases by the end of February. However, no specific timeframe is provided for the remaining cases’ resolution. Previous statements revealed a work-in-progress backlog significantly higher than what was disclosed by the former provider, MyCSP. This disparity has led to complications and heightened concerns among civil service members.
Unions and Public Reaction
Unions are advocating for swift action to address the ongoing issues, which include pension payments delays that have resulted in serious financial strain for many. Their demands include additional resources for backlog clearance and financial recompense for affected individuals. They are also calling for a halt to voluntary exit schemes until the situation is normalized.
In correspondence with staff, Cat Little reiterated the apology and acknowledged the stress regarding voluntary exit schemes. She assured that cases related to these voluntary exits are being prioritized with provisions for simplified processes during the recovery period.
Future Actions and Support
The statement concluded with measures to support pensioners and former civil servants experiencing financial hardship. Specifically, recent retirees are advised to contact their former department for help, while those who left over a year ago should reach out directly to Capita.
- Outstanding Work: Capita is also managing the requirements of the McCloud judgment, which involves benefit choices for about 74,000 pensioners and 21,000 deferred members.
This situation highlights ongoing challenges within the Civil Service Pension Scheme, with both Capita and the Cabinet Office taking steps to rectify the present crisis and improve future service delivery.
