The UK government is establishing a new unit dedicated to bringing public services back in-house from outsourcing companies, promising "the biggest wave of insourcing in a generation." This initiative has gained momentum following Capita's troubled takeover of the Civil Service Pension Scheme administration, which has suffered from a glitchy website and prevented some former civil servants from accessing their pensions. The new unit, based within the Office for the Prime Minister and Cabinet, will examine critical contracts and apply a Public Interest Test to most central government service contracts worth at least £1 million to prioritise service quality and public value over short-term cost savings.

The unit will focus on building Civil Service capability and reducing spending on external consultants whilst reducing operational risks. Cabinet Office building management work—including cleaning and security—is an early candidate for insourcing when current contracts expire in 2028. Capita's seven-year, £239 million pension administration contract, which began in December 2025, runs until December 2032 with a further three-year extension option, meaning immediate termination is not feasible. The previous MyCSP arrangement (2012–2025) cost £238 million since 2016, establishing the financial context for the government's push to reclaim control of critical services.