Key facts
- Capita is under review by the National Audit Office for its administration of the Civil Service Pension Scheme.
- The outsourcing firm admitted its performance has been below expected standards.
- Delays in administering the scheme have affected thousands of civil servants.
- The government withheld nearly £10 million in payments to Capita for poor performance.
- The Civil Service Pension Scheme has 1.7 million members and £189 billion in liabilities.
- Capita is set to take over a new contract for the scheme from December 2025.
Capita is facing a review by the UK's National Audit Office concerning its administration of the Civil Service Pension Scheme. The outsourcing firm has acknowledged that its performance has fallen short of the standards expected by scheme members and the government.
Earlier this year, Capita apologized for numerous failings related to the contract. In July, Chief Executive Adolfo Hernandez admitted to delays in administering the scheme, which has 1.7 million members, leading to thousands of civil servants experiencing delays in receiving payments and retirement quotes. Capita missed a June 30 deadline for the £239 million contract after earlier targets were also not met.
The government has withheld nearly £10 million in payments to Capita due to its poor performance. Capita has stated it will cooperate fully and transparently with the National Audit Office, the Cabinet Office, and other stakeholders. The company also reported making operational progress in August and September, and is implementing further automation and stronger governance to improve services.
Capita's earnings could be affected by up to £40 million due to these contract issues. The National Audit Office's investigation was prompted by concerns raised by scheme members and a reported increase in complaints, which rose to 4,780 in the 2024-25 period. As of March 31, 2024, the Civil Service Pension Scheme covered 1.7 million members and had a total liability for future benefits of £189 billion. The Cabinet Office awarded a new contract to Capita to administer the scheme starting in December 2025, having previously contracted with MyCSP since 2012.