UK spending watchdog opens investigation into Capita's pension fiasco

The UK's public spending watchdog is investigating the troubled transfer of the Civil Service Pension Scheme (CSPS) to Capita. In a notice, the National Audit Office (NAO) said problems had persisted since the outsourcer took over administration in December 2025. The Cabinet Office awarded Capita the seven-year £239 million contract in November 2023, allowing two years to prepare for the transition. The scheme serves 1.5 million current and former public servants. "Key service levels have been repeatedly missed, leaving many members struggling to access the information they need to plan for their retirement," the NAO said. Capita promised AI and automation, but the takeover brought a glitchy online portal, while some members struggled to receive pension payments. Capita missed its deadline to restore normal service by the end of June. It subsequently told MPs that all but the most complex cases would return to normal service by September. …