Capita faces fresh probe over its bungled handling of the civil service pension scheme
Capita has been hit with a fresh government review over its failures in administering its civil service pension scheme contract.
The National Audit Office (NAO) has initiated a formal review into Capita's administration of the Civil Service Pension Scheme (CSPS) following widespread service failures and processing backlogs. Capita, a London-listed outsourcer, took over the management of the CSPS in December 2025, and the NAO's review builds upon a June 2025 initial investigation.
Capita admitted that its performance remains below the standards expected, and the company has pledged to engage fully and transparently with the NAO, the Cabinet Office, and relevant stakeholders. The review was prompted by Capita missing three transition milestones before assuming control of the scheme, leading the Cabinet Office to withhold £9.6m in transition payments.
Scheme members have expressed concerns over delays in receiving pension payouts and responses to queries, particularly affecting vulnerable groups such as those making bereavement claims and death-in-service benefit payments. Capita has acknowledged the need for continued service improvement but claims it has made "good operational progress" in priority areas of the scheme in August and September.
The company lost its statutory pension scheme with Royal Mail earlier this year due to a loss of confidence in the firm.
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