Overview
- PCS warns more than 700,000 retired civil servants could face disrupted payments, including delays to first pensions, redundancy calculations and access to online services.
- The Cabinet Office has withheld £9.6 million from Capita for failing to meet three transition milestones, with final approval for the transfer still pending.
- Parliament’s Public Accounts Committee says there is a clear risk Capita will not be ready to take over administration as planned.
- The £239 million, ten-year contract awarded in November 2023 covers roughly £8 billion in annual payments to about 730,000 pensioners, replacing current administrator MyCSP after a two-year transition.
- Capita disputes the negative assessments as outdated snapshots, while scrutiny persists over its loss of the Teachers’ Pension contract and a 2023 cyber breach that drew a £14 million ICO penalty.