Authorities ought to drop Capita from civil service scheme after it loses Royal Mail position, says union

The Public and Business Providers (PCS) union has stated authorities ought to finish an outsourcing contract with Capita in its troubled civil service pension after it reduce the provider in a separate government-run scheme.

After a Cupboard Workplace announcement that Capita is shedding its contract to manage the Royal Mail pension scheme, attributable to “missed milestones” amongst different issues, the PCS known as for a similar rationale to be utilized to the troubled civil service association.

Capta’s failures because it took over the Civil Service Pension Scheme (CSPS) administration in December 2025 have been aired in public, however the provider has retained the contract.

The PCS stated the federal government should “urgently observe the choice to terminate Capita’s contract with the Royal Mail Statutory Pension Scheme” by taking the identical motion on the civil service contract.

Asserting Capita’s termination within the Home of Commons, Cupboard Workplace minster Nick Thomas-Symonds stated: “Capita had an 18-month planning window to arrange for the transition. They didn’t ship quite a few milestones, together with a failure to implement the required IT automation. The Cupboard Workplace repeatedly flagged delays in transition milestones.”

Following the minister’s feedback, a Cupboard Workplace spokesperson confirmed: “We now have terminated the contract with Capita for the Royal Mail Statutory Pension Scheme following their failure to fulfill key supply milestones.

The CSPS has had large issues since Capita changed MyCSP as pension administrator in December 2025. Capita has confronted criticism this yr following its takeover of the Civil Service Pension Scheme administration, which has seen 1000’s of former civil servants face monetary hardship attributable to delays.

PCS normal secretary Fran Heathcote stated the choice to terminate Capita’s position within the Royal Mail pension scheme is proof that “this may be completed”.

“When a contractor fails, contracts can and must be ended,” she stated. “The identical should apply to the civil service pension scheme. We now have constantly raised the alarm as civil servants and pensioners have been left in misery, dealing with delays and errors to the funds they depend on.

The PCS is asking for the federal government to convey the service again in-house to make sure accountability and correct service for members.

In March, Cupboard Workplace parliamentary secretary Chris Ward stated: “For many years, successive governments have been, at finest, ambivalent about whether or not public companies are delivered in-house. At worst, we’ve had outsourcing by default, with public companies hollowed out and offered off to the bottom bidder. That period ends immediately.”

The federal government launched a Public Curiosity Check, requiring all departments to evaluate whether or not a service may be delivered extra successfully in-house earlier than any outsourcing resolution is made. This can apply to service contracts of £1m and above, protecting over 95% of central authorities spend. “All departments should additionally publish insourcing methods to make the largest wave of insourcing in a era a actuality,” stated Ward.

A just lately retired civil servant nonetheless ready for his pension, which has been delayed attributable to Capita failings, stated: “I’d agree that shockingly unhealthy efficiency ought to have critical penalties, and I used to be subsequently heartened to listen to that Capita had misplaced the Royal Mail contract. I’m sympathetic to what the PCS is saying, notably on accountability.

“However the actuality can be extra difficult and require cautious thought and planning,” he added. “There aren’t battalions of civil servants on standby prepared for the work. Important funding could be required in folks and IT for this to occur, in addition to political settlement to an increase in civil service headcount. Time could be wanted to plan and implement a sturdy system so change would take time. What occurs within the interim?”