There has been a small market of pension administrators bidding for the contract, potentially limiting the Cabinet Office’s ability to secure value for money for the scheme administration. Capita administered only some elements of the pension scheme before MyCSP took over the contract in 2014 to administer the whole scheme. Capita is now taking on the responsibility for administering the scheme in full from MyCSP. The Cabinet Office says that the market of pension providers is quite small, undermining its scope to encourage competitive procurements and obtain value for money for the taxpayer. In light of the small market of pension providers and need across government to apply the McCloud remedy across several pension schemes, the Cabinet Office stated that it is currently reviewing the market to understand how to encourage new entrants and ensure market resilience. It also told us that when looking to procure any significant contract like this, there would also be consideration given to the costs and benefits of delivering the service in-house. recommendation The Cabinet Office should set out in its Treasury Minute response its overall commercial strategy for pension administration including consideration of the benefits and costs of administering the scheme in-house. 5 1 Customer service Introduction