UK spending watchdog opens investigation into Capita’s pension fiasco
The UK's National Audit Office has opened an investigation into Capita's handling of the Civil Service Pension Scheme, which the outsourcer has administered since December 2025. The investigation follows widespread service failures that have caused serious disruption to 1.5 million current and former public servants who depend on the scheme for retirement planning and pension payments. These failures are significant because they affect people's access to essential financial information and the payments they rely on.
Capita was awarded the seven-year £239 million contract in November 2023 with two years to prepare for the transition. However, key service levels have been repeatedly missed, with problems including a glitchy online portal and delayed pension payments; some members reported waiting six months or longer. The outsourcer missed its June deadline for service restoration and subsequently promised September normalisation, yet problems persist. Capita has acknowledged that performance remains below the standards expected and is implementing further automation and improved governance to address the issues.
- NAO investigates Capita's troubled Civil Service pension transfer
- Service failures left 1.5 million members struggling to receive payments
- Capita admits fault and pledges improvements through better automation
New here? Start with this
The Civil Service Pension Scheme is one of Britain's largest pension schemes, serving 1.5 million current and former public servants including teachers, nurses and civil servants. Capita, a major British outsourcing company, took over management of the scheme in December 2025 after being awarded a seven-year contract worth £239 million in 2023, which gave them two years to prepare for the transition.
Since taking over, Capita has not met the expected service levels, with problems including the online portal malfunctioning and delays in processing pension payments, with some members waiting six months or longer. The company missed its June deadline for service restoration and subsequently failed to meet a September target for full normalisation.
These issues matter because pensions are essential to financial security in retirement, and problems accessing pension information and payments can cause hardship for millions of public servants and their families. When outsourcing companies manage large public services, their performance directly affects whether people can plan for their financial futures.