25
Small market for outsourced pension providers necessitates review to encourage new entrants and resilience
Recommendation
Noting the seemingly small concentration of suppliers, we queried with the Cabinet Office if the market for pension providers is too small and, if so, what it is going to do to ensure that it has more options in future contract tenders. The Cabinet Office responded that the market is quite small, with few outsourced providers. In light of the small market of pension providers and the 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.56 Following our evidence the session, the Cabinet Office wrote to us and stated that it has started engaging with the Crown Commercial Service to understand what it may do to shape the market in future procurements.57
Government Response
A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
Civil service pensions
Report
49th Report - Administration of the Civil Service Pension Scheme
24 Oct 2025
HC 888
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.9 yr
Report published
24 Oct 2025