UK's Capita hit with new review over troubled pension scheme contract

Capita, the UK outsourcing firm behind the administration of a troubled civil service pension scheme, is facing a new government review of its performance. The company said on Friday that it is still operating below expected standards. The probe from the National Audit Office will examine how the scheme is being managed, building on an earlier investigation from June 2025. It forms part of accountability arrangements for major public service contracts. The review adds to pressure on Capita over the pension contract, which has become a flashpoint for broader concerns about private outsourcing of critical public services. Capita said it made “good operational progress” over the last two months across priority areas after its half-year results in August, including implementing more automation and stronger governance to improve service.