Capita to cooperate with NAO review after missing civil service pension contract deadlines

Capita, the London-based contractor for the civil service pension scheme, has agreed to engage fully with a National Audit Office review following a series of shortcomings that delayed pension statements for thousands of civil servants. Chief executive Adolfo Hernandez acknowledged that the firm missed the June 30 deadline for delivering the terms of the £239 million contract, after earlier missed targets. In response, the government has withheld nearly £10 million of payments and there are calls to remove Capita from the contract.

The company said on Friday it will cooperate transparently with the National Audit Office, the Cabinet Office and other relevant parties, and highlighted operational progress made in August and September. Capita also announced plans to increase automation, improve governance and management information, while conceding that performance remains below expectations. A prior update warned that the contract issues could reduce earnings by as much as £40 million.