Question
Like many right hon. and hon. Members, I have constituents who have not had their pensions paid. In the worst case, a constituent has waited for 11 months without a pension. My question is twofold. First, what compensation will the Minister force Crapita—sorry, Capita—to pay those constituents who have missed out? Secondly, there are tax implications for the sequencing of payments, so payments can fall in different tax years, among other things. Will that all be squared away with His Majesty’s Revenue and Customs, so that our constituents do not overpay tax?
Answer
We are committed to ensuring that no member is left financially worse off, and Capita has committed to paying interest on late payments. All complaints will be handled with reference to the Pensions Ombudsman standards. Compensation can be awarded following investigation under the internal dispute resolution procedure—first by Capita and then by the Cabinet Office. If members are not satisfied, they can then refer to the Pensions Ombudsman. On tax, it is difficult to comment on individual cases. If the hon. Gentleman is aware of a specific case and would like to raise it with me, I will liaise with His Majesty’s Treasury to ensure that no one is negatively impacted.
Verdict: AMBER (48/100)
The reply clearly set out how members who missed out can seek redress: Capita has committed to paying interest on late payments, compensation can be awarded through its internal dispute process and then the Cabinet Office, and members can escalate to the Pensions Ombudsman. It did not give a specific sum, however. On the tax question, the reply declined to comment on individual cases without giving a reason and only committed to liaising with HM Treasury, not HMRC, so it does not explain how the sequencing or overpayment issue will be resolved. The asker would likely need to follow up on the tax and HMRC points.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What compensation the Government will require Capita to pay to constituents who have not received their pensions and have missed out as a result. | Addressed | Direct | The reply names concrete redress: Capita has committed to paying interest on late payments, compensation can be awarded through the internal dispute resolution process (Capita, then Cabinet Office), and members can escalate to the Pensions Ombudsman. Together these describe the mechanism for compensating those who missed out, although the reply does not state a specific sum or say the Government will 'require' payment. |
| Whether the tax implications of the sequencing of pension payments, including payments falling in different tax years, will be resolved with HMRC so that constituents do not overpay tax. | Partially Addressed | Hedged | The reply declines to comment on tax for individual cases without giving a reason, and its only substantive undertaking is to liaise with HM Treasury (not HMRC) to ensure no one is negatively impacted, which does not specify how the sequencing or overpayment issue will be resolved with HMRC. |