Updated
Updated · The Guardian · Jul 20
UK Plans to Bring £239 Million Pension Contract In-House as Capita Misses June Deadline
Updated
Updated · The Guardian · Jul 20

UK Plans to Bring £239 Million Pension Contract In-House as Capita Misses June Deadline

2 articles · Updated · The Guardian · Jul 20

Summary

  • The Cabinet Office said it is preparing to bring the civil service pension scheme back in-house after Capita failed a critical end-of-June service target and repeatedly missed recovery goals.
  • Up to a year-long payment delays have left some retired civil servants and bereaved families without income, with about 17,000 relatives of deceased claimants facing hardship from stalled claims.
  • Individual cases underline the breakdown: a 98-year-old widow waited months for payments, while Sarah Colhill said a delayed £86,000 death-in-service benefit forced her onto universal credit and left her struggling to pay rent.
  • Capita, awarded the £239 million contract despite earlier pension-contract failures, said it inherited a 90,000-case backlog from Equiniti and was working through it with new technology and staffing.
  • The reversal marks a sharp shift from January, when the government backed Capita, and aligns with parliamentary and union warnings that outsourcing had failed pensioners and taxpayers.

Insights

After a £239m pension disaster, why did the government give Capita an even bigger £370m contract?
With thousands suffering, how will the government rebuild the skills to manage its own pension scheme successfully?
Is the UK's move to end 'outsourcing by default' a genuine policy shift or just crisis management?