“Why has a government which previously promised ‘the biggest wave in insourcing in a generation’ decided to ramp up outsourcing in this key area?”
Fran Heathcote, PCS Union General Secretary
By the PSC Union
PCS members working in the Cabinet Office have voted to take strike action which could disrupt civil service pension payments and contributions in their campaign against their jobs and services being privatised.
Our three members working for Civil Service Pensions Finance have voted unanimously for action in an industrial action ballot which ended today (23) over Cabinet Office plans to privatise the work they do and transfer them to outsourcing giant Capita on 1 December.
Our members, who are based at Priestley House in Basingstoke, have over 60 years’ combined civil service experience, handle critical payment processing, employer liaison, and authorisations. Strike action could severely disrupt daily pension transactions, including quotes for redundancy and early retirement, and purchase order operations across government departments.
PCS General Secretary Fran Heathcote said: “The Cabinet Office choosing to outsource these important responsibilities without any consultation is a gigantic kick to the face to our members.
“The failed outsourcing of pension administration has brought it to the precipice of collapse – so why has a government which previously promised ‘the biggest wave in insourcing in a generation’ decided to ramp up outsourcing in this key area?
“These pension finance workers must, like those staff administering the CSPS, be under the direct control of the Cabinet Office as civil servants to ensure proper governance and provide a decent public service.”
Currently pensions administrator MyCSP, where members are in the 16th week of strike action over their employer’s refusal to recognise PCS ahead of a proposed transfer to Capita also on 1 December, has to send costs and invoices through to the Cabinet Office members to ensure that payments being made are accurate. So, the move to privatise these tasks may mean that the new provider ends up marking its own homework.
The employer made the decision to privatise the jobs without consultation with PCS and in the process denied workers the right to make decisions over their future. The contract was awarded in January 2024, but workers weren’t informed of the proposal until July 2025.
We remain open to negotiations with the employer and hope management agrees to our members’ wishes to remain within the civil service.
- You can show your support for striking PCS members on Facebook, Twitter/X and Instagram.
- This article was originally published by the PCS on 23 October 2025.
