Capita Saga Goes On
The GMB is continuing to press the government on Capita’s ongoing poor administration of the Civil Service Pension Scheme which has meant that many retired civil servants have been waiting months for their Pension to be paid.
Outsourcing giant Capita took over running the civil service pension scheme in December 2025 from MyCSP (which had also performed poorly while managing the scheme). We directly warned the Cabinet Office at the time about Capita’s poor performance record – as we are aware of their track record in other government departments of administrative errors, delays and miscalculations and a backlog of cases of around 120,000 all of which caused financial hardship to GMB members. Additionally, in 2023, Capita were reported to the Information Commissioner following a Data breach on members pension information and they were subsequently fined £14m in 2025.
Additionally, on 1st December 2025 (Day 1 of their taking control of the CS scheme) Capita’s Pension portal system crashed leaving pension scheme members unable to access their pension information.
Thanks to the pressure applied by GMB along with other Trade Unions the Cabinet Office has now
- Established a route by which Trade Unions can escalate members cases similar to that used by MPs and Lords and provided written confirmation of the categories of case which are to be escalated
- Confirmed that cases already escalated – when the contact point was put in place between Christmas and mid-January – are still being dealt with as a priority
- Introduced Bridging Loans (of up to £5,000) for those still not in receipt of their pensions
- Introduced Key Performance Indicators for Capita to achieve an acceptable performance standard
We are also seeking that Capita
- Provide Compensation for those who have suffered loss through delayed pension payments
- Employ more caseworkers and pay them properly
Reform attack Local Government Workers – Again! Hands Off the Local Government Pension Scheme (LGPS)
Since 2010 Local Government workers have seen their pay cut by 26% on average in real terms; meanwhile they continue to deliver essential services in their communities with fewer resources and with ever-growing demand. Security in retirement is the bare minimum they deserve after a lifetime of service to their communities and the LGPS provides some of that security, but only at an average of £5.416 p.a. for men and £3,198 p.a. for women.
Reform have previously expressed a desire to stop newly appointed Local Government workers joining the LGPS – something that will make people even poorer in retirement! They have now launched a further attack on the scheme by writing to councils under their control urging them to cut employer contributions to staff pensions down to zero.
They are doing so as many LGPS funds are currently in surplus and the 2025 valuations, effective from April 2026, are expected to reflect this position which may lead to reduced employer contributions for many councils. The GMB view is that surpluses in the fund should be shared equally, just as deficits are. Moreover, any decisions to reduce the contribution rate should be driven by professional actuarial advice and be actuarially certificated, not subject to political interference.
Encouraging employers to pay nothing into the scheme risks undermining stability, complicates long-term planning, increases reliance on future investment returns, creates reputational risk (with employers potentially contributing less than members) and could create intergenerational unfairness.
GMB members should be vigilant and take an active interest in their council’s pension fund valuation and resist any attempts to lower contribution rates below the certified actuarial contribution rate. GMB members should also work closely with other Trade Unions to challenge any such attacks.
The Local Government Pension Scheme is part of your well-earned pay package, and it is more important than ever that union members are united in opposing any further attacks*.
Pension Awareness Training
Members and Reps are frequently asked pension-related questions especially from those employed in Local Government, the NHS and the private sector. However I am aware that many reps consider pensions to be complex and poorly understood.
It is for this reason that I seek to provide workplace and branch bespoke information, advice, guidance and training on how occupational pension schemes operate and how to best support members in understanding their options.
The GMB does not expect representatives to provide financial or actuarial advice (that would be illegal unless you are a qualified Independent Financial Adviser) but we consider it important that reps should be equipped with sufficient knowledge to understand basic pension frameworks, explain available options and signpost members appropriately,
As the National Pensions Organiser I can develop and provide bespoke pension awareness training for workplace representatives focussing on understanding scheme structures, common member scenarios, and available options at key employment transition points.
Such training can be provided on request at a location of your choice and can be allied to any recruitment or campaign initiatives.
Just ask me!
*Notes on the Local Government Pension Scheme
- The LGPS in England and Wales is split into 86 separate funds, which are run by the assigned council, known as the administering authority (AA). The Scheme has a total of 6.7 million members and total assets under management (as of 31 March 2024) of approximately £390 billion.
- All employees of local government service have a statutory right to join the LGPS (under regulation 3) and must be automatically enrolled.
- The LGPS was reformed from a final salary scheme to a Career Average (CARE) scheme in 2014/15 and employer contribution rates are set every three years by local fund valuations, with all the reports put in the public domain once the valuations are completed. In 2022 the funding level of the scheme was 107% and the average total contribution rates had fallen to 21.10%, this is lower than other public sector schemes. 2025 is a valuation year and the funding level is expected to stay above 100%.
- The LGPS delivers significant value, the typical member is a 47-year-old woman earning c.£18,000 a year, for whom the average pension is c. £5,000 a year. It is also incredibly efficient; it costs around half that of the unfunded public sector Defined Benefit (DB) schemes and lifts many recipients out of scope for means tested benefits. It delivers each £1 of retirement income 50% cheaper than Defined Contribution (DC) schemes.
- AAs have a duty to co-operate with strategic authorities to identify and develop appropriate investment opportunities to relation to local investments for the benefit of persons living or working in the scheme’s area.
- In summary, the LGPS is one of the world’s most successful pension schemes delivering pension payments to millions of workers across the country. It has consistently demonstrated financial resilience and operational stability. It provides pensions on behalf of 15,000 employers and close to 7 million workers in Local Government.
- It is an open, democratically run, accountable, value for money pension scheme that provides valuable benefits to some of the UKs lowest paid workers – women in particular – and invests monies in its local communities. Without it a lot more people would be worse off than they already are.
- Like all significant UK pension schemes, the LGPS takes responsible investment seriously and integrates climate considerations into overall risk management. It has a strong record of investing in local areas and the highest proportion of investments in domestic assets in the UK pension sector.
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