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Capita's pension scheme transition experiences significant delays, impacting IT and payments withheld

Recommendation
The planned date of transfer of administration from MyCSP to Capita is 1 December 2025. However, of the eight transition milestones which have so far passed, only one has passed with all elements delivered on time.45 At the end of March 2025, the Cabinet Office had withheld £9.6 million from Capita in transition payments due to delays.46 To derisk delivery, the Cabinet Office and Capita have agreed to deliver a simplified IT solution in December 2025, delaying expected greater functionality until at least March 2026.47 Prior to our evidence session in early July Capita provided written evidence to the Committee to assure us of its readiness to take on Scheme administration on 1 December 2025. It argued that where milestones have been missed, these have subsequently been met and stated that it was “firmly on track to assume full administration of the CSPS from 1st December 2025” with “enhanced, innovative services for members for when the contract commences”.48
Government Response

A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 24 Oct 2025