National Audit Office Reviews Capita Civil Service Pension Failures

The National Audit Office launched a review on October 2, 2026, into the administration of the UK Civil Service pension scheme by Capita. The outsourcing firm manages a £239 million contract serving 1.7 million members, but has faced repeated criticism for missed deadlines and delays in delivering retirement quotes and payments to thousands of civil servants.

These failures led the Government of the United Kingdom to withhold nearly £10 million in payments. The current review follows a previous investigation in June 2025. In July, CEO Adolfo Hernandez admitted to the delays, and the company has since acknowledged that its performance remains below the standards expected by the government and scheme members.

Capita is now prioritizing the remediation of the contract through tighter governance and increased automation. The company noted that these ongoing issues could impact its earnings by as much as £40 million.