I met Capita’s senior leadership last Wednesday, and told them directly that their operational failures, missed targets and escalating backlog are completely unacceptable. The Cabinet Office continues to monitor performance daily to hold Capita to account robustly. Capita has until the end of June to restore the service to contractual levels.
As the Minister will know, behind every statistic and delayed case is a pensioner who is not receiving their pension after years of public service. I have constituents whose cases have been outstanding for months, including one from Farnham whose case took nine months to resolve. The end-of-June deadline is now effectively upon us. Does the Minister genuinely believe that Capita will make that deadline? If not, what sanctions or remedial action will she pursue to resolve the issue?
The hon. Gentleman is completely right: those who have given a lifetime of service expect and deserve better. The Cabinet Office has held Capita to account robustly, using all commercial levers. Capita has a strict end-of-June deadline. If it fails to meet that deadline, we will consider all options. With your agreement, Mr Speaker, the Paymaster General intends to make a statement to the House about this issue at the end of the month.
My constituent’s father, who worked all his life in public service, died tragically a year ago. Capita is withholding from his family the provision that he thought would make them secure. Another constituent was having his pension paid until Capita took over, and now he is receiving nothing. It is a tragic shambles, but the problem is not rocket science; it is the IT system. If Capita cannot make this work in the time that it has already had, it should surely not be given the chance to do it any longer, and perhaps its other Government contracts should be reconsidered.
My hon. Friend is absolutely right that the situation is unacceptable. If she contacts me about her constituents’ cases, I will be more than happy to take them up. As I have said, Capita has a strict deadline at the end of June. The Government have been robust in holding it to account. We will use all our commercial levers, and all options will be considered. After June, and with Mr Speaker’s permission, my colleague the Paymaster General intends make a statement to the House. As with the Royal Mail contract, we will not hesitate to hold Capita to account and let it feel the consequences of its actions.
The Government held the first-ever UK-EU summit last year, where we announced a new common understanding that is good for bills, for borders and for jobs. We look forward to going further at the next UK-EU summit, which will be held at the earliest possible opportunity.
Improving our relationship with the EU is about trade barriers, but it is also about standards. Many UK companies already follow the EU’s corporate sustainability due diligence directive in order to trade with our biggest external market. Without alignment, we risk becoming a dumping ground for unethically sourced products while responsible UK companies are undercut by less responsible enterprises. What conversations has the Minister had with Cabinet colleagues about aligning our human rights and environmental due diligence regime with that of the EU, to protect UK companies that do the right thing?
The UK supports the EU’s efforts to promote sustainable and responsible corporate behaviour within global value chains. We will continue to review the impact of measures taken by the EU and other countries, including, as my hon. Friend suggested, to see what lessons can be drawn from other jurisdictions to inform the UK’s approach.
I was recently in Washington DC. On several occasions, our American counterparts raised concerns about the future of the EU-UK relationship and realignment. What discussions has the Paymaster General had with his US counterparts, as well as with EU counterparts?
I am very pleased with the economic deal with the United States that this Government have delivered and with the advantages that it brings, particularly for our automotive sector, including the jobs saved at Jaguar Land Rover. It is perfectly possible, as the Government are demonstrating, to sign free trade and economic deals around the world while having a close relationship with the EU.
Following the agreement at the May 2025 summit to establish a UK-EU youth experience scheme, can the Minister update the House on the progress of negotiations on the scheme and confirm that it remains a Government priority?
I certainly can. Negotiations have been proceeding very well. I look forward to making the case for those opportunities to work, travel and study for young people—I think it is very exciting.
The negotiations for the new relationship with the EU have been the body of the Minister’s work, so what pitch will he make to the right hon. Member for Makerfield (Andy Burnham) about how important it is that he carries on doing this work, or will he give up so that he does not have to be involved in the right hon. Member’s flip-flopping?