Capita took over 1.7 million civil service pensions. Ministers plan to take them back.
Capita began running the Civil Service Pension Scheme in December 2025.
Since then many civil servants who wanted to retire or cut their hours have not received payments, the BBC reported on 5 October 2026. Members said a call can take up to two hours.
A Cabinet Office spokesperson called service levels "completely unacceptable". The department is "withholding nearly £10m in payments" and is "actively shaping a long-term strategy to bring this pension scheme back in-house". The National Audit Office is reviewing the handover from the previous administrator, a company called MyCSP.
Capita said: "We are sorry for the impact the service issues have had on members and recognise there is more to do to restore the service members should expect."
The contract is worth £239m over seven years, Computer Weekly has reported. The withheld sum is about 4% of the seven-year value, ten months into the term. The government has not said when the scheme would move, or what ending the contract early would cost.
Sources
Every story here is open to read. The ERP LEADERS brief goes one step further.
The week in enterprise software, in one email: the stories that mattered, the failures with their figures, one case taken apart. Read a sample or sign up for the brief.
Welcome back. · Issue 01
