The UK's National Audit Office has opened an investigation into Capita's administration of the Civil Service Pension Scheme, following persistent problems since the outsourcer took over in December 2025. The seven-year contract, worth £239 million, covers 1.5 million current and former public servants. The NAO said key service levels had been repeatedly missed, leaving many members unable to access information needed for retirement planning.
Capita's transition was supposed to be underpinned by AI and automation, but the rollout produced a glitchy online portal and some members struggled to receive pension payments. A deadline to restore normal service by the end of June was missed, and Capita later told MPs that all but the most complex cases would be back to normal by September. The investigation comes after members told the BBC of delays, including a widow who had waited six months for her pension after her husband's death in March.
Capita said it accepts that performance remains below what members and the Government expect, and that fixing the problems is its top priority. It added that it would cooperate with the NAO, the Cabinet Office, and parliamentary and regulatory investigations, while implementing further automation and stronger governance. The Register notes this is not a compute/hardware story, but rather a cautionary tale about digital transformation in the public sector.