Sopra Steria, the French-owned consultancy managing the United Kingdom’s armed forces pension scheme, has faced repeated penalties over failures in administering veterans’ pensions, amid a growing scandal involving over 1,000 military veterans receiving large repayment demands.
Since June 2020, Sopra Steria has failed to meet contractual obligations 59 times, with 42 of those incidents deemed significant enough to warrant financial penalties. The company holds a £294 million contract to operate the pension scheme and has been criticized for not adhering to key performance indicators, including maintaining accurate records and ensuring correct payments are made to beneficiaries.
Last month, it emerged that many veterans were issued with substantial bills due to errors in pension calculations. In some cases, individuals faced repayment requests exceeding £100,000, causing severe financial distress. Several affected veterans have reported having to sell their homes to settle these unexpected debts. Additionally, monthly pension payments have been reduced for those involved.
Sopra Steria assumed full control of the scheme in 2023 after buying out the government’s stake in Shared Services Connected Ltd (SSCL), a joint venture it previously operated alongside the Cabinet Office. The firm subcontracts administration tasks to Equiniti, a pension and finance company implicated by sources in some of the overpayment errors. However, the government’s contract is directly with Sopra Steria, leaving it unable to impose penalties on Equiniti.
Neither Sopra Steria nor Equiniti have clarified where the mistakes originated or outlined specific measures to rectify problems for veterans. Sopra Steria has stated that many of the errors trace back more than a decade before their takeover and that decisions regarding recouping sums from veterans were not their responsibility.
The controversy recalls earlier challenges faced by SSCL, notably in 2016 when John Neilson, then CEO of SSCL and later Sopra Steria’s chief executive until his June 2026 departure, testified before Parliament amid concerns about contract performance.
Among those affected is 71-year-old Steve Skidmore, who served in the British Army from 1974 until retiring in 2009 as a major. In August 2025, Equiniti informed him he owed £124,308 due to pension overpayments spanning 16 years. Skidmore described the situation as distressing and unmanageable without selling his home.
The government has confirmed it is investigating the pension overpayments. Calvin Bailey, minister for veterans, acknowledged the issue publicly last week, emphasizing the need for a thorough review.
Equiniti said it aims to provide members with accurate information and appropriate support as the matter is addressed. Meanwhile, Sopra Steria maintains that many faults predate their administration of the pension scheme and has not detailed any repayment plans for the veterans impacted.