National Audit Office launches review into Capita over civil service pensions

Capita said that it accepts that its performance in running the scheme “remains below the standards that scheme members and the Government rightly expects”.

Earlier this year, the London-based firm apologised for a raft of failings linked to issues running the contract.

In July, chief executive Adolfo Hernandez admitted delays in administering the 1.7 million-member pension scheme, which left thousands of civil servants waiting for payments and retirement quotes.

Capita failed to meet a deadline of June 30 to deliver the terms of the £239 million pensions contract after missing earlier targets.

The Government withheld nearly £10 million in payments to Capita for its poor performance over the Civil Service scheme, amid calls for the firm to be stripped of the contract.

On Friday, Capita said it will engage “engage fully and transparently” with the National Audit Office, cabinet office and other relevant stakeholders.

The firm added that it made “good operational progress” across priority areas of the pension scheme in August and September.

In a statement, the company added: “Capita recognises the need for continued service improvement, and we are implementing further automation along with stronger governance including improved management information.

“Capita accepts that performance remains below the standards that scheme members and the Government rightly expect.

“The remediation of CSPS (civil service pension scheme) remains the Group’s top priority.”

In a previous update, Capita had said it earnings could be hit by as much as £40 million from the contract issues.