Outsourcing firm Capita has acknowledged shortcomings in its management of the civil service pension scheme, which covers approximately 1.7 million members. The company issued an apology following reports of significant delays affecting thousands of civil servants awaiting pension payments and retirement information.

Speaking in the House of Commons, Cabinet Office minister Nick Thomas-Symonds described Capita’s performance as “not good enough” and identified the company’s contract as a “prime candidate” for government takeover. However, he stopped short of announcing an immediate transfer of responsibility. Thomas-Symonds emphasized the government’s commitment to rectifying the situation, noting the deployment of a dedicated 140-person team aimed at addressing the backlog, including over 4,000 unresolved bereavement cases.

The civil service pension scheme, outsourced to Capita under a contract initiated in 2023 by the former Conservative administration, has faced mounting criticism for its handling of pension payments and quotes. Public sector union Prospect has publicly called for Capita to be removed from the contract, citing ongoing service failures that jeopardize timely and accurate pension administration for civil servants.

The current government has pledged to recover all funds mishandled or delayed by Capita. Efforts to reduce outstanding cases and restore confidence in the scheme’s administration continue amid growing pressure from both parliamentarians and union representatives.

As the backlog is addressed, officials have reiterated the importance of ensuring that pensioners and their families receive timely support, particularly in cases involving bereavement, where delays have caused additional distress. The situation remains under close scrutiny as the government continues to evaluate next steps regarding the contract’s future management.