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UK's Capita hit with new review over troubled pension scheme contract

Capita said it will work with the National Audit Office and Cabinet Office after delays left 1.7 million pension scheme members waiting for payments.

  • The National Audit Office has launched a review into Capita's administration of the Civil Service Pension Scheme, the seven-year, £239 million contract awarded by The Cabinet Office.
  • Problems have persisted since the outsourcing firm took over administration in December 2025, with Capita admitting its performance "remains below the standards that scheme members and the Government rightly expects."
  • The NAO said "key service levels have been repeatedly missed," leaving members struggling to access information, while the Government withheld nearly £10 million in payments to Capita for poor performance.
  • Responding to the investigation, Capita said it will "engage fully and transparently" with the NAO and The Cabinet Office, though the firm warned earnings could be hit by as much as £40 million.
  • Chief executive Adolfo Hernandez maintains that fixing the CSPS remains the Group's top priority, with the firm reporting "good operational progress" across priority areas of the scheme in August and September.
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National Audit Office launches review into Capita over civil service pensions

Capita said its performance in running the scheme ‘remains below the standards that scheme members and the Government rightly expects’.

·London, United Kingdom
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The Independent broke the news in London, United Kingdom on Friday, October 2, 2026.
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