Capita facing fresh government review after alleged pension failures

(Alliance News) - Capita PLC on Friday noted the National Audit Office's decision to undertake a review of its administration of the Civil Service Pension Scheme.

The National Audit Office said: "Despite a two-year transition period to prepare for taking over the scheme, Capita has struggled to administer the scheme effectively following the transfer. Key service levels have been repeatedly missed, leaving many members struggling to access the information they need to plan for their retirement.

"Other members who were due to have retired have been forced to amend their plans as they did not receive the payments they were entitled to on time. The Cabinet Office has had to introduce transitional support loans to these members, with GBP22.1 million paid out to more than 3,900 members by August 2026. Parliament has repeatedly scrutinised the performance of both Capita and the Cabinet Office through a series of evidence sessions to try to understand why the service is underperforming."

The NAO said the audit, building on its June 2025 investigation, will assess the scheme's status and transition arrangements, how Capita has administered it, and how the Cabinet Office has exercised its oversight responsibilities.

The review will build on a June 2025 investigation of previous CSPS administrator MyCSP Ltd, which had repeatedly missed service targets for retirement quotes, first pension payments and call handling.

Capita, the London-based outsourcing and business services provider, said it would continue to engage fully and transparently with the National Audit Office.

Capita took over administration of the Civil Service Pension Scheme in December 2025 under a contract worth GBP239 million over seven years.

On Friday, Capita stressed its "long-standing record" of cooperation with Parliamentary and regulatory investigations.

"Capita recognises the need for continued service improvement," it said, "and we are implementing further automation along with stronger governance including improved management information. This will continue to improve operational output and member experience.

"Capita accepts that performance remains below the standards that scheme members and the government rightly expect. The remediation of CSPS remains the group's top priority," Capita said.

Capita said it made "good operational progress" in priority areas of the Civil Service Pension Scheme in August and September.

Shares in Capita were down 3.3% at 218.50 pence on Friday morning in London.

By Niall Holden, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.