Watchdog sticks probe into Capita's handling of 1.7 million member civil service pension scheme
The Public Accounts Committee began investigating Capita's handling of the Civil Service Pension Scheme administration following the company's December takeover from MyCSP under a ten-year £239 million contract. Members reported portal access issues, unrecognized credentials, and payment delays. Capita inherited a large remediation backlog and promised AI and automation solutions with 500 staff to resolve issues by March, but has missed multiple deadlines including June 30 and a March 2027 target. The government withheld a £10 million payment over the failures, and the National Audit Office is conducting its own probe.
Key points
- Capita managing pensions for 1.7 million civil servants; inherited 132,100 complex cases
- Members faced portal login failures and unpaid pension delays
- Company missed March, June, and March 2027 resolution deadlines
- Government withheld £10M payment; Parliamentary and NAO investigations underway
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