1000’s of unread emails and 20 million database errors trigger civil service pension hardship
Capita mentioned it was “overwhelmed” by round 16,000 unread emails and 20 million database errors unexpectedly left to it by the earlier provider of the civil service pension administration.
Following its takeover of the civil service pension scheme (CSPS) admin, Capita has failed to satisfy its supply guarantees and left some claimants in extreme monetary difficulties.
In 2023, the Cupboard Workplace awarded Capita a seven-year contract price £239m for the administration of the CSPS, which has 1.7 million members. The takeover from the earlier administrator MyCSP was on 1 December 2025.
Dealing with MPs in a Public Accounts Committee (PAC) assembly, Chris Clements, managing director of Capita Public Companies, was requested if Capita was lied to concerning the backlog. He mentioned: “We had been shocked by the character of the backlog on going stay.”
In January, following a litany of issues, a troubleshooter stepped in from HMRC to steer an “pressing restoration plan”, which included 150 employees being moved quickly from HMRC to the service.
PAC report confirmed early warning indicators
The warning indicators already existed in October, when a PAC report mentioned there was a “actual threat” that Capita is not going to be able to take over the administration of the CSPS on time. The outsourcer hit again on the time, claiming it was “not reflective of the present state of the transition” and was inaccurate. However following failures, the enterprise outsourcing service supplier has had £9.9m in funds withheld from it on account of missed targets.
Throughout the listening to, executives apologised for its failure and pointed to a “big backlog” of circumstances left for it by the earlier pension administrator.
Richard Holroyd, CEO at Capita Public Companies, mentioned the provider is now “fast-tracking any know-how” that may assist and is deploying “as a lot synthetic intelligence [AI] as we will as quick as we will to assist cope with an important circumstances”. He mentioned the corporate is already utilizing AI to learn emails and prioritise workload, and it’ll enhance self-services for scheme members in the long term.
MPs advised tales of constituents left with dire monetary issues due to Capita’s failures delivering the scheme administration. PAC committee chair, Geoffrey Clifton-Brown MP, started by pointed to earlier warnings over Capita’s readiness and the struggling of individuals attempting to say their pensions.
“Final October, our committee printed a report on Capita’s deliberate takeover from MyCSP of the administration of the civil service pension scheme,” he mentioned. “This has been overseen by the Cupboard Workplace. In our report, the committee warned that there was a transparent threat that Capita wouldn’t be able to take over the administration as deliberate – and our predictions, sadly, have turn out to be a actuality.”
Clifton-Brown mentioned that MPs have heard “heartbreaking” tales from members of the scheme over the previous few months, with many left with no earnings and having to resort to “hardship loans” from authorities departments.
Each Capita executives apologised profusely and blamed the backlog of circumstances left by the earlier provider for its failure.
Capita ‘overwhelmed’ by dimension of backlog
Holroyd admitted to MPs that the scheme was not delivering what it ought to, saying: “We inherited a scheme that was in want of reform, and we inherited a backlog of some 86,000 circumstances, 16,000 unread emails…”
Lots of the circumstances within the backlog are associated to emails that haven’t but been learn, mentioned Holroyd, including that Capita additionally inherited round 20 million traces of corrupted database knowledge. “We inherited a service that was in misery,” he advised MPs. “We’re completely dedicated to fixing it.”
Clements advised MPs that extra human sources have been offered by the Cupboard Workplace, who’re at present “studying these 16,000 emails” and promised that they are going to all have been learn by February 28.
In whole, there are round 750 individuals engaged on the scheme, in comparison with about 400 when it was taken over, in line with Clements. When requested when Capita grew to become conscious of the unread emails, he mentioned they had been conscious there have been some however didn’t see them till the information was “bulk downloaded” to it on 1 December.
Holroyd mentioned that after Capita grew to become conscious of the dimensions of the backlog, it needed to get extra employees, prepare them and get them on the system, which takes time. Whereas a backlog of some hundred emails is predicted, the true quantity “overwhelmed” Capita, he acknowledged, including: “It’s remarkable to obtain that many unread emails on takeover.”
Requested whether or not Capita was advised the dimensions of the backlog, Holroyd mentioned the corporate would have ready if it had been made conscious of the huge variety of emails, however it couldn’t say what number of emails it was advised had been there.
Guarantees made on 25 November to the federal government about supply, simply weeks earlier than go-live, had been “made in good religion” primarily based on the knowledge the corporate had, mentioned Holroyd, including: “What we imagine was occurring was that our predecessors had been telling individuals to name again on 1 December when the brand new service started. We don’t personal the backlog, however we personal the issue and it’s for us to resolve. It’s the prime precedence throughout Capita group, and we’re placing every part into this.”
Holroyd acknowledged the corporate wouldn’t scale back employees till the service is operating because it ought to.
