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1. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   We have already withheld nearly £10 million in contractual payments, and Capita is voluntarily taking 10% less in its monthly payments. On bringing the service in-house, it is important that we get this right, do it at the right time and ensure that we pick the best model for the scheme, so that service members do not have to suffer any further. We are liaising with trade unions, pension experts and others to look at the options for different types of models, and I will return to the House when I have further updates on that.

   Hansard source
2. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   We are committed to ensuring that no member is left financially worse off, and Capita has committed to paying interest on late payments. All complaints will be handled with reference to the Pensions Ombudsman standards. Compensation can be awarded following investigation under the internal dispute resolution procedure—first by Capita and then by the Cabinet Office. If members are not satisfied, they can then refer <span id="42" class="column-number" data-column-number="42"></span>to the Pensions Ombudsman. On tax, it is difficult to comment on individual cases. If the hon. Gentleman is aware of a specific case and would like to raise it with me, I will liaise with His Majesty’s Treasury to ensure that no one is negatively impacted.

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3. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   The Cabinet Office is leaning in, but I want to be absolutely clear that Capita is still responsible for the contract and is still accountable for the delivery of any rectification plan. All options remain on the table and, as I have said, we are looking at different in-house models for this scheme, in line with our manifesto commitment to have the biggest wave of insourcing in a generation.

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4. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   I thank the hon. Member for raising her constituent’s case, and I am sorry to hear of Ann’s experience under Capita’s own self-imposed deadline. That case should have been resolved by now, and if the hon. Member wants to write to me about it, if she has not done so already, I will ensure that it is looked at. On further contracts for Capita, this Government brought in the Procurement Act 2023, which allows us to consider poor performance in giving out other contracts. As I have said, I cannot discuss whether Capita, or any other organisation, is subject to an investigation or anything in relation to debarment, but there is now a lever at the Government’s disposal.

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5. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   I am sorry to hear about the experience that my hon. Friend’s constituent has had, as have the constituents of so many in this House. On compensation, as I have set out, we are absolutely determined that no member will be worse off as a result of Capita’s failure. The Government are determined to recoup every single penny we have had to spend helping Capita to resolve the failures, which it should have been able to do itself. On her constituents being able to claim compensation, I will come back to this House at a later date once we have this under control, and I will be happy to answer further questions on that. However, as I have set out, complaints will be handled in reference to the Pension Ombudsman standards.

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6. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   There is a focus on complex cases, but alongside that Capita is working to do incoming cases on a live basis, particularly those relatively easy to resolve. It is actually processing more cases than it is getting in, but because of the significant backlog and the high number of complex cases, it still will not feel like a good service to many members.

   Hansard source
7. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   I thank my hon. Friend for raising his constituent’s case. As I said in my statement, I will come back to the House in the next month or so to give an update on the McCloud remedy. Capita has completed the discovery phase, but due to delays and the identified complexities in the remaining cohorts, it is not clear whether the initial date is achievable. I will come back and update the House on what more we will be doing to ensure that his constituents and others get the pension they are entitled to.

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8. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   I am sorry to hear of Elizabeth’s experience. It is totally unacceptable, as are so many of the cases that we have heard about today—and so many that we will not hear about, too. As the hon. Member will know, the Cabinet Office supplied nearly 150 staff in a surge team to help support Capita in processing the backlog. We also now have senior Cabinet Office officials working every single day with Capita to ensure that it is dealing with the complex cases that need serious expertise to be processed. We will continue to support Capita in any way we can. The remedial report noted that the technology let Capita down in a big way. It has now put some further resource and money into the technology, so automation should help process some cases faster. The biggest learning from the report is that while Capita said it would be an AI-enabled pension scheme, that just was not the reality.

   Hansard source
9. 26 Oct 2026·Parliament·Labour·Sally Jameson

   Civil Service Pensions

   I am sorry to hear of the experience that my hon. Friend’s constituents have had. It is totally unacceptable, and Capita has been totally unacceptable. As I said in my statement, its performance has been utterly abysmal, and those at Capita should hang their heads in shame at how they have treated dedicated public servants in this country. I will take up the issue that he raises with my officials to ensure that we are improving that part of the service, so that his constituents can get the correct quotes that they need.

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10. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I agree with the hon. Member. I am not a tech expert, but I certainly know there is nothing AI about the system that Capita has been using. It is totally unacceptable that Capita suggested that the system would be AI, when clearly it was not ready to take on this level of automation. The technology was not available to Capita at the time. Cabinet Office officials are working on the Capita systems day in, day out to make sure that we are holding Capita to account and challenging it. As I have said, there have been some improvements to the technology, and I have told Capita that those improvements need to continue. Whatever it is putting in, there is more it can do, and I continue to tell Capita representatives that every time I meet them. As far as I am concerned, things will never be good enough until every single person affected has the pension that they should have and the compensation to which they are entitled.

    Hansard source
11. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I share my hon. Friend’s disgust. I will look into that case to ensure that Capita finds the paperwork, or if it must be re-sent, that it is actioned immediately. As my hon. Friend said, it is indicative of Capita’s total and utter incompetence. We need to bear in mind that this is why it is important that we stick to our manifesto commitment to have the biggest wave of insourcing in a generation.

    Hansard source
12. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I am sorry to hear that the hon. and learned Member has not had a reply from the Cabinet Office; I will chase that as a priority when I leave the Chamber. I receive correspondence daily from Members across the House and I get on with them as quickly as possible, so I am unsure why something sent on 26 August has not come to me yet. I will chase that immediately. According to Capita’s own deadline, the case the hon. Member describes is something that should have been resolved by 1 September, so when I receive the correspondence, I will ensure that it is chased appropriately.

    Hansard source
13. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I agree with my hon. Friend: Capita has been abysmal, as I have said a few times now. It is for that reason that my predecessors in the role held back nearly £10 million in contractual payments to Capita—a move that I supported. Capita, on a voluntary basis, is now receiving 10% less on its monthly payments because it recognises that its service is wholly inadequate. All other options remain on the table. I will monitor the outcome of the new rectification plan on a fortnightly basis and return to this House if it is not good enough.

    Hansard source
14. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    No, it is not acceptable, and if the hon. Member flags that case with me, I will ensure that it is chased. I will not make excuses for Capita’s poor performance; it is accountable for its performance, and frankly it should be ashamed.

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15. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I hope that Capita is listening to the pain and hardship that it has caused so many thousands of dedicated public servants up and down this country. The new rectification plan that is being done with Cabinet Office officials means that we should hopefully see some improvement. We will be monitoring that on a fortnightly basis, since Capita will now be publishing the numbers. I will keep a close eye on that and ensure that the House is updated.

    Hansard source
16. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I myself was not confident in the numbers previously given by Capita, as I said to its face after 1 September, when it claimed to have met its self-imposed deadline, which did not reflect the experience of scheme members. We have today heard about cases that should have been resolved by that deadline, but which clearly were not. I agree that Capita has been, let us say, flaky with the truth on the reality of the numbers. The difference now is that Cabinet Office officials have access to those systems; they can go in, see for themselves exactly what is going on, verify the numbers and figures that Capita is providing and report back on that. The transparency of the new fortnightly updates means that we will be able to see those cases in all their glory and see whether or not the figures are coming down.

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17. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I am absolutely disgusted to hear about the experience of my hon. Friend’s constituents with the Capita hotline and will be taking that up with Capita myself. It is totally unacceptable. No one in Capita right now should have the time to laugh, frankly; they should be spending every waking minute working to resolve their failures and the crisis that our retired civil servants are facing.

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18. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I will be discussing with the Department for Education the lessons that we have learned from this transfer. Capita has shown publicly how terribly it has been—you do not have to look far to find a constituent who has been affected by this. We absolutely must improve these services going forward, which is why we are exploring in-house models. We want to have a big wave of insourcing, because we can no longer be totally reliant on these companies that let us down time and again.

    Hansard source
19. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    If my hon. Friend writes to me with the detail of those two cases, I will, of course, be happy to look at them. What he raises is just another example of the poor service that Capita has provided—an indictment of its incompetence.

    Hansard source
20. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    Some of Capita’s classifications for cases—“workable cases” and that sort of carry-on—are not something that the Government ever recognised; that classification was not in the contract, and it is something that Capita has made up. I was very clear when I first met the CEO of Capita that I do not recognise that. Capita said that those bereavement cases would be resolved by 1 September. If any of those have not been resolved, then frankly that is a missed deadline. In relation to what further action we could take, as I have said, my predecessor already withheld £10 million in contractual payments. Capita is receiving 10% less each month on a voluntary basis while the service remains as poor as it is. The Government now have at our disposal the Procurement Act 2023, which allows us to take into account poor performance when regarding other contracts.

    Hansard source
21. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    <strong> </strong>My hon. Friend has raised a number of issues related to Capita and fought for his constituents on many occasions in the Chamber. As I set out, it will not be possible to publish the full remedial adviser’s report for legal and commercial reasons. However, we will be providing it confidentially to the Public Accounts Committee and the Public Administration and Constitutional Affairs Committee. I will discuss with officials the possibility of bringing out a smaller version of it that can be made public, but the rectification plan that we have put in place is based on the recommendations of the remedial adviser.

    Hansard source
22. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I appreciate the points that the hon. Gentleman raised. The Cabinet Office is working with Capita on existing cases from MPs’ surgeries. The only hesitancy I would have is that the priority is to make sure that the service Capita is providing is improving. I could put lots more resources into this, but unless Capita is able to provide answers, produce a quote, and deliver people’s pensions, we will not see an improvement in the output that people are getting. We will absolutely keep under consideration what more we can do to help people, but I really want to hold Capita’s feet to the fire on this rectification plan so that we can get to a position where the surgeries are not needed any more because people are getting what they deserve.

    Hansard source
23. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    I am sorry to hear of Kathy’s experience. What has happened to her and many scheme members up and down the country is not right. As I have said, we will not be able to publish the audit report in full for legal and commercial reasons, but we will provide it confidentially to the PAC and PACAC for their scrutiny. The remedial adviser’s report recommended the rectification plan that we have put in place. That has only just been put into place. In the coming weeks, we will monitor whether it is working. If it is not, we will take further steps. Nothing is off the table.

    Hansard source
24. 26 Oct 2026·Parliament·Labour·Sally Jameson

    Civil Service Pensions

    The situation that the hon. Member highlights for his constituents is totally unacceptable. I understand why he is so angry about it; I am, too, as I am about so many of the cases we have heard about. I am not sure whether I can make 11 am on Friday, but I will follow up after the statement to see if we can get any further progress.

    Hansard source
25. 26 Oct 2026·Parliament·Labour·Sadik Al-Hassan

    Performance of Royal Mail

    The performance of Royal Mail is a matter of serious concern across North Somerset, where delivery failures are having real consequences for residents and businesses alike. The problem is long standing in my constituency. In February, following a steady flow of correspondence, I launched a survey asking constituents about their experiences. I have worked constructively with local CWU representatives ever since to understand the pressures that Royal Mail faces and find practical solutions, and I am grateful for their engagement. Earlier this year, I also hosted a town hall, which made the issue painfully <span id="115" class="column-number" data-column-number="115"></span>clear when many of my constituents received their invitations by post only after the event had taken place—three weeks after I had sent them out. That is part of a wider pattern of delays eroding confidence in postal services across North Somerset, with Portishead and Nailsea particularly affected. The results of my survey are stark. Some 87% of respondents reported experiencing delays, with nearly half having waited between one and two weeks beyond the expected delivery date to receive a letter. In September, I visited the Portishead delivery office and heard the voices of our amazing posties and CWU representatives. It is clear that Royal Mail is going through significant change as parcel volumes grow and the nature of the service evolves, and our posties are being asked to bridge structural problems that are not of their making. Locally, the service is also struggling with high vacancy levels. Across Bristol and North Somerset, staff shortages are preventing Royal Mail from delivering a business-as-usual service.

    Hansard source
26. 26 Oct 2026·Parliament·Labour·Sadik Al-Hassan

    Performance of Royal Mail

    I have to agree with my hon. Friend, who is, as I hear often in the Chamber, a fantastic advocate for Harlow. Royal Mail’s staff shortages expose the shortcomings of its new delivery model and the two-tier pay systems that are affecting retention, and help to explain—but not excuse—the delays that my residents are experiencing. We need a system that gives staff the time, resources and support to deliver reliably. That means enough workers, proper support for new starters, enough vans and hours, and delivery models that actually work in practice. Although I would like to see tougher penalties when Royal Mail fails to meet its delivery targets, the fines issued by Ofcom have clearly not prompted change. This is not about faulting postal workers, who work amazingly hard; it is about holding the company accountable for a service that the public still rely on so heavily. We cannot accept the current standard of service. Some 53% of respondents in my survey said that delayed deliveries had caused them to miss appointments or deadlines. As a pharmacist, I am particularly concerned about health consequences, as late letters increase the risk of missed appointments and put added strain on our NHS. For some people, a late letter is not simply an inconvenience—it is a health risk. Some steps that would make a real difference without placing undue burden on postal workers include notifying businesses when deliveries will not be made and providing for collection in exceptional circumstances.<span id="116" class="column-number" data-column-number="116"></span> Our posties are pillars of our community, working tirelessly in all weathers to deliver a vital service. I want to be clear that my concern is with the systemic problems in the postal system and not the amazing, dedicated individuals who deliver it. I will continue working with local CWU representatives. Royal Mail must communicate better when deliveries cannot be made, consider local collection options and keep addressing the operational pressures behind these delays.

    Hansard source
27. 26 Oct 2026·Parliament·Labour·Richard Burgon

    Bank Windfall Taxation

    I rise to present this petition on a windfall tax on the banks in the autumn Budget, further to a corresponding online petition signed by over 13,000 people. This petition of residents of the United Kingdom states that a windfall tax on the super-profits of banks, like that introduced on energy companies, could generate £15 billion per year, providing essential resources to tackle the cost of living crisis affecting millions of people. The petitioners therefore request “that the House of Commons urge the Government to take into account the requests…and consider the resource benefits of a windfall tax on banks when allocating funds in the budget.” <em>Following is the full text of the petition:</em> <em>[The petition of residents</em> of the United Kingdom, <em>Notes that Britain’s largest banks are making unusually high profits from the higher interest rates that simultaneously have driven up rents and mortgages, and that experts estimate that a windfall tax in line with that introduced on the oil and gas firms would generate up to £15 billion a year, providing resources to fund emergency action to address the cost-of-living crisis.</em> <em>The petitioners therefore request that the House of Commons urge the Government to take into account the requests of the petitions and consider the resource benefits of a windfall tax on banks when allocating funds in the Budget.</em> <em>And the petitioners remain, etc.</em><em>]</em> [P003251]

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28. 26 Oct 2026·Parliament·Labour·Richard Baker

    Securing Scotland’s Future: Defence Skills and Jobs

    Today, the Minister for Defence Readiness and Industry visited the Methil yard in my constituency, which has already doubled its number of apprentices, and with the prospect of Programme Euston and new dry docks for Faslane being built at the yard, there could be hundreds more. Does my hon. Friend agree that the recommendations about apprenticeships show the need for apprentice availabilities to be increased at pace for the opportunities that lie ahead for Scottish yards?

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29. 26 Oct 2026·Parliament·Labour·Rachel Blake

    Rough Sleeping and Good Growth Funds

    My constituency consistently has the highest number of rough sleepers in the country. This is not a statistic that we welcome. I was grateful for the opportunity to attend the Prime Minister and the Minister’s rough sleeping summit today, and to visit The Connection at St Martin’s in my constituency, where I spoke to people who have been sleeping rough and the frontline workers who work every single day to help people off the streets. This sustained funding will make a real difference, and we cannot overestimate the impact that it will have. Will the Minister comment on how local authorities should collaborate in the future on local connection, in relation to how that issue prevents some people from finding a <span id="60" class="column-number" data-column-number="60"></span>sustainable home, and on the commissioning of detox and recovery services, which have been fragmented for far too long? The fact that these things are so fragmented is holding people back from the recovery that they so desperately need.

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30. 26 Oct 2026·Parliament·Labour·Rachael Maskell

    Topical Questions

    I am concerned that recorded crime figures in York Central reached an 11-year high this summer. About a third of those were antisocial behaviour offences, and retail crime reached its highest level, with around 15,000 offences in August alone. What steps is the Minister taking to <span id="26" class="column-number" data-column-number="26"></span>ensure that places like York are properly funded and have all the resources that they need to tackle crime so that we can get on top of this rising level of offending?

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31. 26 Oct 2026·Parliament·Labour·Rachael Maskell

    Rough Sleeping and Good Growth Funds

    Over the years we have worked incredibly hard in York, across multiple agencies, to end rough sleeping by looking at the holistic needs of people who were out on the streets. I am pleased to say that we have cracked that nut. However, we have a challenge in the way the funding works for people with no local connection. Will the Minister say a bit more about how we can ensure that such people receive funding in the place where they are choosing to stay and that there is a proper transfer of resources?

    Hansard source
32. 26 Oct 2026·Parliament·Labour·Phil Brickell

    Performance of Royal Mail

    My hon. Friend has spoken very passionately about the experiences of her constituents. My constituents have faced issues in which they have had mail only once every three or four weeks; one constituent did not receive 14 items of post. Does she agree that the Royal Mail’s treatment of Ofcom fines simply as a baked-in operational risk is one reason, among others, why we need a far more muscular regulatory regime?

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33. 26 Oct 2026·Parliament·Labour·Phil Brickell

    Performance of Royal Mail

    My hon. Friend is making a passionate contribution about the experience of her constituents and the real-life impact of Royal Mail’s failures. Does she agree that this is yet another prime example of why it is important to properly regulate a public service? Contrary to what some Members of this House may think, it is not bureaucracy or red tape; it is about securing the proper functioning of a public service.

    Hansard source
34. 26 Oct 2026·Parliament·Labour·Paul Davies

    Prostate Cancer Screening

    It is a pleasure to serve under your chairmanship, Dr Murrison. The National Screening Committee’s current recommendations are very restricted, limiting prostate cancer screening to every two years for men aged between 45 and 61 with pathogenic BRCA2 variant and a family history of breast, ovarian, pancreatic or prostate cancer. According to its modelling report, just one in 277 people has the variant. In total, around 1,500 men in England would be eligible for such screening. The Transform trial is a key part of the Government’s strategy for improving detection and support for men with prostate cancer. It is a long-term commitment and I absolutely support that work, but I am concerned about the lack of strategy to support men with, and at high risk of, prostate cancer in the interim. Clearly, this impacts men today. I am concerned that the decision to withdraw the previous prostate cancer risk management programme and to direct GPs to refer to guidance in NICE clinical knowledge summaries when discussing PSA tests with patients has seriously reduced clarity for patients.

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35. 26 Oct 2026·Parliament·Labour·Paul Davies

    Prostate Cancer Screening

    I absolutely agree. We clearly have to act on that, and very quickly—that is the key point that many Members have made. We cannot wait. We see so many men affected by this illness and, unfortunately, many deaths and many men suffering for a long period.

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36. 26 Oct 2026·Parliament·Labour·Paul Davies

    Prostate Cancer Screening

    I absolutely agree. I recently had to work quite hard to get a PSA test. I have a very good GP, but was basically told it was a waste of time having the test. We need to make sure we have clarity so that GPs know how to deal with this and men understand that they have an entitlement to the test. I ask the Minister to make sure that we have a clear offer to higher-risk men. Will she confirm that men aged 50 or over or at higher risk are able to discuss the pros and cons of testing with their GP, and that the entitlement to a PSA test remains even though the PCRMP has been withdrawn? Going back to the screening we have at the moment, will she explain how BRCA2 carriers will be found and invited to screening going forward?

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37. 26 Oct 2026·Parliament·Labour·Patricia Ferguson

    Civil Service Pensions

    I have no doubt that Members across the Chamber have an extremely regrettable constituency postbag on this issue, as I do. I thank the Minister for her statement. I do not plan to rehearse the cases that I have seen, but, needless to say, they are all marked by the fact that timescales seem to be ignored, while people are being left in financial hardship. People are finding it very hard to understand why this is the case with a Government body—or, at least, with a body that they think is a Government body. How long will Capita have to deliver on the latest rectification plan, and how will the Minister judge it on that plan? Does she have a timeframe for all that work?

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38. 26 Oct 2026·Parliament·Labour·Patricia Ferguson

    Securing Scotland’s Future: Defence Skills and Jobs

    I am grateful to the Backbench Business Committee for granting time for a statement on the publication of the Scottish Affairs Committee’s report, “Securing Scotland’s Future: Defence Skills and Jobs”. As the House will know, significant increases in defence spending are anticipated as the UK works towards our commitment to spend 3.5% of GDP on defence by 2035. Our inquiry therefore examined a simple but important question: how can we maximise the positive impact of this spending in Scotland? Scotland already has a world-leading defence sector, from shipbuilding on the Clyde and in Rosyth to aerospace, advanced manufacturing and cyber-capability. Growth in the sector has the potential to create more highly skilled jobs and support economic growth across Scotland—including, importantly, in rural and island communities. The strategic defence review, the defence industrial strategy and the defence investment plan provide the framework for delivering these ambitions and for ensuring that Scotland is well placed to benefit from increased investment. However, our inquiry has shown that it is not a given that increased defence spending will benefit Scotland. We cannot afford to be complacent: ensuring that Scotland benefits will require long-term planning and co-operation between the UK and Scottish Governments to support jobs, skills development, innovation and growth. The clearest message we heard throughout our inquiry was about skills. Employers, colleges, universities and trade bodies across Scotland repeatedly told us that the defence industry faces skills shortages, including in engineering, fabrication, welding, software, cyber and advanced manufacturing. This is despite major defence programmes such as for the Type 26 and Type 31 frigates and the Dreadnought-class submarines, which will require a sustained pipeline of highly skilled Scottish workers for years to come. This will be all the more important as the UK Government continue to win and sign deals for the export of Scottish-made defence products such as frigates. We have heard similar messages about skills shortages in our inquiries into other sectors, including offshore wind, civilian shipbuilding and space launch, to name but a few. Many of those sectors, which are key to our economic prosperity and to the UK’s strategic interests, are competing for the same pool of skilled workers. Without investment in training and apprenticeships, there is a real risk of one sector solving its skills shortage by poaching workers from another sector.<span id="76" class="column-number" data-column-number="76"></span> That is why apprenticeships are such an important focus of our report. During our Committee’s visit to BAE Systems—part of which I am proud to say is located in my constituency—we met young people whose expertise and enthusiasm demonstrated the enormous potential of apprenticeships and early career routes in the industry. However, demand for apprenticeship places far exceeds supply, with engineering programmes often attracting many thousands of applicants for a very limited number of places. Our report highlights the importance of that talent pipeline keeping pace with future demand. This will require the UK and Scottish Governments to work together effectively, as policies impacting the sector span both reserved and devolved responsibilities; defence policy, as we know, is reserved, while education, skills and apprenticeships are devolved. Our report calls on both Governments to work together to increase defence-related apprenticeships in Scotland. Our report also welcomes direct investment through the defence industrial strategy skills package, through which Scotland will receive a share of the £20 million allocated to the devolved nations. While this funding is absolutely welcome, £20 million is a small fraction of the full £180 million UK-wide package, and it must be shared across Scotland, Wales and Northern Ireland, meaning that Scotland will receive a disproportionately small share of the total UK fund. Our Committee questions whether such a limited share of funding can really shift the dial on skills shortages and calls on the Government to explain how the funding is commensurate with the size, importance and potential of Scotland’s defence sector. We look forward to the Government’s response on that point. Moving on from apprenticeships, our report also looks at the defence technical excellence colleges, or DTECs, which are specialist colleges designed to provide advanced technical training for defence careers. These colleges will help to develop the skills that employers tell us they need. The Committee heard overwhelming support for DTECs, and we believe they could have the potential to address persistent skills shortages. The UK Government have proposed two DTECs in Scotland—one in the east and one in the west—and have provided funding for one of them. The establishment of both DTECs is subject to match funding from the Scottish Government. The Committee strongly supports the establishment of both colleges, and stated in our report, which was published last month, that we hoped to see the Scottish Government provide the funding required. We are very pleased that since the publication of our report, the Scottish Government have confirmed that they will provide the necessary funding, with both DTECs now going ahead. This is a positive outcome for Scotland, and reflects the joined-up approach that we need to see. However, progress establishing DTECs in Scotland has fallen a little behind counterparts south of the border, and we are concerned that further delay risks Scotland being left at a disadvantage. We therefore urge both Governments to work with greater urgency to deliver those colleges, because the skills challenges facing the sector are too pressing for Scotland to miss this opportunity. Our inquiry also examined the experiences of small and medium-sized enterprises. SMEs form the backbone of Scotland’s economy and play a critical role in the <span id="77" class="column-number" data-column-number="77"></span>defence supply chain, too. The Committee heard from numerous SMEs, many of which told us that participating in defence procurement remains difficult and that complex bidding requirements, high compliance costs and financial risk are all burdensome barriers to growth. Our report therefore welcomes the creation of the MOD’s Defence Office for Small Business Growth, which is designed to help SMEs and start-ups to access the defence supply chain and to scale up. It is too early to know whether the office will deliver meaningful change. To help to track its effectiveness, our report calls on the Ministry of Defence to publish clear metrics for success. We also call for the MOD to favour prime contractors that are committed to support supporting SMEs in their supply chain. During our inquiry, we also heard about the particularly concerning issue of debanking. We heard first-hand accounts of SMEs struggling to access banking and financial services, despite providing products and services that directly support our national security. That is clearly unacceptable. These firms are helping to strengthen our nation’s security. They are creating skilled jobs and driving economic growth, yet some are still being denied access to basic banking services at a time when the Government are scaling up defence capability. Our report calls on the Government to engage directly with the financial services sector to put an end to this problem. The report highlights wider challenges around public perceptions of defence. We heard concerns that misunderstandings about the sector negatively impact recruitment and discourage talented people from considering careers in defence. Too often, discussion focuses narrowly on weapons and overlooks the engineers, researchers, software specialists, manufacturers and innovators whose work contributes both to security and technological advancement. The Committee therefore supports efforts to foster a broader national conversation about the defence sector, its role in protecting the country and the opportunities it creates for communities across Scotland. Ultimately, our report reaches a straightforward conclusion: Scotland is exceptionally well placed to benefit from increased defence spending, but unlocking that opportunity will require investment in our young people through apprenticeships, technical education and initiatives such as the DTECs. It will also require the Government to provide certainty for the industry and support SMEs, which are so critical to us. I thank everyone who contributed to our inquiry and my fellow Committee members for their thoughtful and constructive work throughout. With that, I commend the report to the House.

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39. 26 Oct 2026·Parliament·Labour·Patricia Ferguson

    Securing Scotland’s Future: Defence Skills and Jobs

    I absolutely agree with the hon. Lady. We are very grateful that the DTECs are going to happen—all credit to both Governments for working <span id="78" class="column-number" data-column-number="78"></span>together on that—but apprenticeships will also come through our further education colleges, and it is important that they are given the resources to benefit from jobs not only in the defence sector but, for example, in clean energy, which our Committee has heard so much about.

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40. 26 Oct 2026·Parliament·Labour·Patricia Ferguson

    Securing Scotland’s Future: Defence Skills and Jobs

    My hon. Friend is right to highlight that point, because it was raised with us by those in the defence sector. The right to peaceful protest is something that we all recognise the need to respect and uphold, but she is right to highlight the problems that there have been on some occasions in the sector. However, I draw heart from my experience of speaking to apprentices at BAE Systems in my constituency, who to my mind are the best advocates for the work that they are doing and the purpose to which that work will be put. They were able to tell me in very straightforward terms—just like they do with their mates down the pub at the weekend, as a couple of them told me—about the importance of their work, why they were doing it and how proud they were of it.

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