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National Audit Office launches review of Capita's civil service pensions administration

Capita said the National Audit Office has begun a review of its running of the Civil Service Pension Scheme, and accepted its performance remains below expected standards.

2 outlets · 0L · 1C · 1R First reported Account updated
Image: Evening Standard
Image: City A.M.

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The story, neutrally told

Capita said on Friday 2 October that the National Audit Office (NAO) has launched a review into its administration of the Civil Service Pension Scheme (CSPS). In a statement, Capita accepted that its performance "remains below the standards that scheme members and the Government rightly expect", said it would engage fully and transparently with the NAO, the Cabinet Office and other stakeholders, and called remediation of the scheme its top priority. The company said it had made "good operational progress" in priority areas in August and September, and that it is implementing further automation and stronger governance, including improved management information.

City A.M. reports the review builds on an initial NAO investigation in June 2025 and follows widespread service failures and processing backlogs after Capita took over full administration in December 2025. Scheme members have reported delays in pension payouts and in responses to queries, with backlogs affecting vulnerable groups including bereavement and death-in-service claims. In July, chief executive Adolfo Hernandez admitted delays in administering the 1.7 million-member scheme, and Capita missed a 30 June deadline to deliver the terms of the £239 million contract after missing earlier targets.

The Government withheld nearly £10 million in payments over poor performance amid calls for Capita to lose the contract; City A.M. puts the figure at £9.6m in transition payments, withheld after three missed transition milestones. Capita also missed multiple milestones during the handover from the previous administrator, MyCSP, prompting questions in Parliament about its capacity and readiness. Capita earlier warned that its earnings could be hit by as much as £40 million from the contract issues, and City A.M. notes it lost its Royal Mail statutory pension scheme earlier this year after the government cancelled the contract.

Every sentence links to the reporting it rests on.

Left0 outlets

No left outlet in our sources has covered this story yet.

Centre1 outlet

Framing
Leads with Capita's admission that performance is below standard, then recounts the year's failings, apology and withheld payments.
Emphasis
Capita's statement, the CEO's July admission, the missed 30 June deadline, the £239 million contract value and the £40 million earnings risk.
Leaves out or plays down
Does not mention the earlier NAO investigation, the MyCSP handover, or the lost Royal Mail contract.
For example
“Capita said that it accepts that its performance in running the scheme “remains below the standards that scheme members and the Government rightly expects”.” — Evening Standard

Right1 outlet

Framing
Presents the review as a formal follow-up to the NAO's earlier investigation, focusing on service failures and the effect on scheme members.
Emphasis
Backlogs hitting vulnerable groups, missed milestones, parliamentary questions and the loss of the Royal Mail pension contract.
Leaves out or plays down
Does not mention the £239 million contract value, the CEO's July admission or the £40 million earnings warning.
Charged language
“widespread service failures”
For example
“The NAO decided to launch the review following widespread service failures and processing backlogs after Capita took over full administration in December 2025.” — City A.M.