Capita rubbishes Public Accounts Committee report claims
A Public Accounts Committee (PAC) report has concluded there’s a “actual threat” that Capita won’t be able to take over the administration of the Civil Service Pension Scheme (CSPS) on time, however the outsourcer has hit again claiming the report is “not reflective of the present state of the transition”, and that it comprises inaccurate data.
The PAC report on the administration of the CSPS cites insufficient employees ranges, unrealistic automation targets and missed IT milestones as considerations.
In 2023, the Cupboard Workplace awarded Capita a seven-year contract price £239m for the administration of the CSPS, which has 1.5 million members.
The takeover from present administrator MyCSP is due on 1 December 2025. The PAC mentioned the Cupboard Workplace knowledgeable it that it was present process a reset plan over the summer time, earlier than making a call in September on whether or not to proceed with the transition as deliberate, however it added that the choice to go forward with the contract award has not but been confirmed.
When awarded the contract, Capita mentioned it “will modernise pensions administration methods via enhanced system design and digital innovation”.
This contains, it mentioned, integrating generative synthetic intelligence know-how to providers for pension members.
Capita administered some parts of the pension scheme earlier than MyCSP took over the administration of the entire scheme in 2014, however from December, Capita will tackle full accountability.
Over-ambitious targets
Nevertheless, in response to the report by MPs on the PAC, a deliberate discount to the workforce, over-ambitious automation targets and the choice to make use of a simplified IT choice within the interim have solid doubt on Capita assembly the deadline.
The report additionally mentioned Capita plans to cut back the variety of employees operating the scheme by 33 to 299. The Cupboard Workplace, which awarded the contract, advised the PAC that fewer employees can be wanted as automation know-how is adopted. “For instance, it was assumed in Capita’s plans that 95% of transactions can be automated,” the report acknowledged.
However the PAC mentioned Capita has additionally missed milestones for delivering its IT infrastructure, and can now produce a simplified IT system when the contract begins, “to de-risk supply, with additional performance at present anticipated to be deployed by March 2026”.
Opposite to PAC claims, Capita advised Pc Weekly it should the truth is be using extra employees (506) than are at present employed by MyCSP (332), “not 33 lower than MyCSP as advised within the report”.
It mentioned: “[We are] making ready to tackle administration of the Civil Service Pensions Scheme (CSPS) from 1 December 2025, working with the Cupboard Workplace to assist a profitable transition.”
The report acknowledged that Capita has solely delivered one out of eight transition milestones on time, and that the Cupboard Workplace has already withheld £9.6m from Capita attributable to delays.
“The Cupboard Workplace acknowledged that delays to key deliverables had been a big concern, although famous that every milestone has a variety of labor packages that sit beneath it, and subsequently specializing in the completion of the entire milestone in all probability belies how a lot work has really occurred,” mentioned the PAC.
“It advised us that it believed Capita had underestimated the complexity of the transition and the size of time it could take to implement the know-how, and that it was working with Capita to provide a brand new supply plan with reasonable dates.”
The PAC mentioned the Cupboard Workplace “asserted” that it has back-up plans. These embody a extra gradual roll-out of the Capita know-how, in addition to different choices that might not be detailed attributable to business sensitivity.
It added that the Cupboard Workplace has beforehand didn’t handle the “profitable transition” from one pension scheme to a different with out a drop in efficiency ranges throughout that interval.
“MyCSP’s poor customer support report during the last two years mirrors the identical drop-off that occurred when Capita was handing parts of the scheme administration over to MyCSP in 2014,” the PAC mentioned.
