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Sopra Steria to Challenge £370 million Capita Contract in 2028 High Court

Sopra Steria will take legal action against the UK government's £370 million outsourcing deal awarded to Capita, with a trial set for early 2028.

Sopra Steria, which currently runs parts of the shared services through its wholly owned SSCL unit, is preparing to contest a £370 million ten-year contract that the Department for Work and Pensions awarded to Capita. The company argues the award price is dramatically lower than the £958.7 million estimate used in the tender and 42 percent below the DWP’s internal cost model. In its filing, Sopra Steria says Capita’s proposal relied on staffing levels significantly below those in place.

Capita and the DWP responded that the procurement process was thorough and aimed at delivering high service standards. A judge has listed the dispute for a seven-week trial beginning 17 January 2028 in the Technology and Construction Court, while parties continue alternative dispute resolution efforts that could affect cost awards.

Why it matters

The outcome could reshape how UK government outsourcing contracts are priced and awarded.

In this story

Sopra SteriaCapitashared services contract£370 millionDWP cost modelcourt hearing 2028procurement dispute
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