Capita Axed As Commons Drives Reforms Amid Vetting Row

High-Level Summary

The Commons first handled private business before Wales questions, then held Prime Minister’s Questions, an Urgent Question on the Government’s procurement strategy, and a ministerial statement on pensions administration. MPs later considered Lords messages on three major Bills, backing the Government’s positions on the Pension Schemes Bill, the Children’s Wellbeing and Schools Bill (including putting school phone bans on a statutory footing), and the Crime and Policing Bill in divisions. The Paymaster General outlined procurement reforms focused on national security, insourcing and SME access, while the Cabinet Office confirmed termination of Capita’s Royal Mail statutory pensions contract and set deadlines to stabilise civil service pension administration. Proceedings concluded with petitions, a deferred division result, and an adjournment debate on sudden unexpected death in epilepsy (SUDEP).

Detailed Summary

Private Business and Business before Questions

The House deferred consideration of the Royal Albert Hall Bill [Lords]: “Consideration of Bill opposed and deferred until Monday 27 April”. It authorised suspension between sessions for the City of London (Markets) Bill under Standing Order 188A: “should have leave to suspend proceedings… to proceed with it… in the next Session”. A separate motion to allow suspension for the Royal Albert Hall Bill [Lords] was objected to—“Object”—and set “To be considered on Monday 27 April”.

Oral Answers to Questions: Wales

Context: Questions to the Secretary of State for Wales covered clean energy, defence, the cost of living, jobs and investment, rail, and economic growth.

• Clean energy: The Secretary of State highlighted recent investment in nuclear and offshore wind, including at Wylfa and Port Talbot: “Great British Energy Nuclear signed a contract with Rolls-Royce… at Wylfa… on top of the £64 million… for Port Talbot”. On delivery, she said, “Clearly, we need to continue our drive to invest more in energy infrastructure”.
• Defence: Ministers cited increased defence spending and a Wales defence growth deal: “investing £270 billion over this Parliament… £50 million defence growth deal in Wales”, and said, “Our Wales defence growth deal will drive innovation and create thousands of high-skilled jobs”.
• Cost of living: The Government announced support for heating oil users: “providing £3.8 million to the Welsh Government to support households… that use heating oil”, and referenced other measures, including that “We have scrapped the two-child limit” and that “700,000 pensioners are being helped through the state pension rise”.
• Jobs and growth: Ministers reported investment and job creation, including “65 new foreign direct investment projects creating nearly 2,500 jobs in 2024-25” and prospects such as “3,000 jobs in new nuclear… 5,000… floating offshore wind… 12,000… Welsh rail”.
• Rail: The Government trailed “a pipeline of projects valued at £14 billion” for Welsh rail.
• Economic growth: A new local growth fund was presented as nationwide in scope: the Minister said the Government’s “more than half-a-billion-pound local growth fund will fuel economic growth in every corner of Wales”. No votes were taken during Wales questions.

Prime Minister’s Questions

Context: PMQs opened with tributes and national security remarks. The session was dominated by exchanges on the appointment and vetting of Peter Mandelson, with additional questions on public services and the economy.

• Opening: The Prime Minister committed to tackling extremism and antisemitism: “we will do everything in our power to keep British Jews safe”, and marked Stephen Lawrence’s legacy.
• Mandelson appointment and vetting: The Prime Minister stated that “Foreign Office officials granted security clearance to Mandelson against the recommendation of UK Security Vetting”; he added regarding whether that advice was shared with Ministers, “He gave a clear answer: no”, and later said, “That information should have been made available to me” and that its absence was “a very serious error of judgment”.
• Other topics: The Prime Minister claimed NHS performance improvements, with “waiting lists at their lowest in three years”; on fuel prices he said “the conflict is causing serious economic damage”; and he undertook to review adding metachromatic leukodystrophy to newborn screening: “I will make sure that we look at this again”. No decisions were announced.

Urgent Question: Government Procurement Strategy

Context: The Paymaster General set out reforms to public procurement.

• Key proposals: He said Departments would use national security exemptions to back critical sectors—“steel, shipbuilding, energy independence and AI”—and that, “Under this Labour Government, the age of outsourcing will end,” introducing a public interest test and insourcing strategies. He also pledged to simplify processes and apply a “tell us once” principle.
• Implementation and scrutiny: He aimed to issue new guidance “very shortly—I hope before the summer recess”. In exchanges, he confirmed social value remains mandatory at a 10% weighting, with a new definition to be created, and undertook to write with specific national security referral figures. No division was held.

Statement: Pension Schemes Administration (Capita)

Context: The Minister updated the House on public service pension administration.

• Royal Mail statutory pension scheme: He announced, “I am announcing today that I have terminated the new Royal Mail statutory pension scheme contract with Capita” due to missed milestones and lack of delivery confidence.
• Civil service pension scheme: He acknowledged delays and set out recovery actions: “telephony wait times… more than 90 minutes… brought down to… under two minutes”; support offered included “more than £7.2 million in interest-free transitional support loans to more than 1,300 members”. The Minister cited a backlog “of around 24,000 outstanding pension quotations” and “more than 1,500 open MP complaints”.
• Commercial measures and deadlines: He said the Government were withholding milestone payments and mandated that Capita “clear all inherited arrears by the end of this month and restore service levels… by the end of June this year”, reserving rights against Capita and MyCSP. No motion was put.

Pension Schemes Bill: Consideration of Lords Message

Context: The House reconsidered Lords amendments, focusing on a reserve power to influence default fund asset allocation to address a collective action problem.

• Government case and concessions: The Minister confirmed statutory caps aligned with the Mansion House accord—“writing the… targets into primary legislation through the 10% and 5% caps”—bringing forward the sunset “from 2035 to 2032” and limiting the power so it “may be exercised only once”, and that “any effects of it [will] fully fall away at the end of 2035”. He also proposed that regulations must “have regard to the importance of competition and innovation”.
• Opposition response: The Shadow Secretary of State welcomed movement on several fronts but opposed “mandation,” arguing it was not justified and not set out in the manifesto: “Mandation… is the wrong conclusion”; “There is no mention of mandation… in the Labour party manifesto”.
• Outcome and next steps: The Commons backed the Government’s motions (main division: Ayes 272, Noes 149), and agreed related amendments in lieu on other clauses without division. The Bill returned to the Lords with the Commons’ reasons and amendments.

Children’s Wellbeing and Schools Bill: Consideration of Lords Message

Context: The House revisited Lords amendments on online harms and school standards.

• Online harms: Ministers reiterated their commitment to act swiftly and more broadly than social media, saying they would respond to the consultation “by the summer” and report to Parliament within six months.
• Mobile phones in schools: The Government moved to make the ban statutory, expecting that “pupils do not have access to their mobile phone throughout the school day”. When pressed, the Minister clarified, “there is no access to phones at any point during the school day”.
• Admissions: Government amendments require adjudicators to take account of school quality and parental preference before deciding to reduce a school’s Published Admission Number, and to consult specified parties.
• Outcome: The Commons insisted on its positions and agreed Government amendments in lieu; the principal division was carried (Ayes 260, Noes 161). The Bill returned to the Lords with reasons and amendments.

Crime and Policing Bill: Consideration of Lords Message

Context: The House considered remaining areas of disagreement, including fixed penalty notices under public spaces orders and a proposal on Iran‑related proscription.

• Fixed penalty notices: Ministers reiterated proportionality and confirmed that statutory guidance “must address the proportionate use of fixed penalty notices” and be issued “within six months of Royal Assent”.
• Iran‑related entities: The Commons again rejected a Lords amendment compelling a review/proscription of entities linked to Iran’s armed forces, with Ministers saying it was “not an amendment that any responsible Government can or should entertain”.
• Outcome: The House insisted on its position regarding proscription (division: Ayes 253, Noes 143) and appointed a Reasons Committee.

Adjournment Debate: Sudden Unexpected Death in Epilepsy (SUDEP)

Context: MPs debated SUDEP prevalence, prevention and care standards.

• Case made: It was noted that “At least 21 people die every week in the UK from SUDEP”, and that “60% of epilepsy-related deaths each year are believed to be preventable”. Members raised tools such as the Clive Treacey safety checklist and support for high‑risk groups.
• Government response: The Minister highlighted embedding “structured risk assessments and consistent risk communication”, reducing neurology waits, and research funding, including “almost £19 million” via NIHR and “over £9 million in clinical trials of cannabis-based medicines”. No resolution was required.

Petitions and Deferred Division

Petitions were presented on Aylesbury United FC’s home ground, protecting the Stockport green belt, the River Brue and water regulation, and opposing the closure of Hamworthy fire station. The House was notified that the deferred division on the draft Energy Prices Act 2022 (Extension of Time Limit) Regulations 2026 was agreed: “The Ayes were 380 and the Noes were seven”.