UK Weighs Insourcing 1.7 Million-Person Pension Scheme as Capita Misses 2 Recovery Deadlines
Updated
Updated · ComputerWeekly.com · Jul 7
UK Weighs Insourcing 1.7 Million-Person Pension Scheme as Capita Misses 2 Recovery Deadlines
3 articles · Updated · ComputerWeekly.com · Jul 7
Summary
Nick Thomas-Symonds told MPs the civil service pension scheme is now a prime candidate for insourcing after Capita missed both its end-April arrears target and end-June service-restoration deadline.
140-plus Cabinet Office officials have been deployed to stabilize the contract, and the minister said Capita will repay every penny of those surge costs while funding an independent technical audit and a remedial adviser.
Immediate termination was ruled out because it would create a catastrophic operational vacuum, but officials have been ordered to examine long-term options, including bringing the scheme back in-house, with an update due in October.
The contract covers 1.7 million members and has been plagued since Capita took over in December, with payment delays, data-integrity and data-protection concerns, and unfulfilled promises of AI-enabled technology improvements.
Capita failed on major pension contracts, so why was it awarded a new £370 million government deal?
With 1.7 million pensions at risk, can insourcing fix the crisis without causing the 'catastrophic vacuum' ministers fear?
Civil Service Pension Scheme Crisis: 1.7 Million Members Impacted by Capita Failures and Government Moves Toward Insourcing
Overview
The Civil Service Pension Scheme, managed by Capita PLC since 2023, is facing a major crisis after the government declared Capita's performance 'not good enough.' Capita failed to meet key targets and deliver adequate service, leading the government to withhold £9.9 million in payments. This has put the contract under intense pressure, with public sector unions calling for Capita to be removed. As a result, Capita is under significant pressure to improve operations and regain trust from both government officials and the 1.7 million scheme members who rely on the service.