Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Develop contingency plans for Capita's pension administration transition and update Committee on decision
Conclusion
There is a clear risk that Capita will not be ready to take over administration of the Scheme as planned on 1 December 2025. The planned date of transfer of administration from MyCSP to Capita is 1 December 2025. However, of the eight transition milestones which have so far passed, only one has passed with all elements delivered on time. The Cabinet Office has stated that the delays are due to Capita underestimating both the complexity of the transition and the time required to implement the technology. The Cabinet Office has also stated that in the worst-case scenario it plans to continue with MyCSP’s existing systems, however currently there is no agreement with MyCSP to keep its digital systems in place. The Cabinet Office told us that it was undergoing a reset plan over the summer with the intention of then making a “go/no-go” decision in September on whether to continue or not with the transition as planned. The decision to go ahead with the contract award has not yet been confirmed. 4 recommendation a. The Cabinet Office needs to fully develop contingency plans should Capita be unable to take over the administration on 1 December 2025. b. The Cabinet Office should write to the Committee with an update on the transition plans immediately following the decision on whether to go ahead with the transition.
Government Response Summary
The government stated it has existing contingency requirements with MyCSP for system rollback and an option to extend support until May 2026 if needed. It confirmed the decision to transfer services to Capita on 1 December 2025 and informed the Committee Chair.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The Cabinet Office has requirements in place with the current provider MyCSP in the event of a failure in the implementation cutover. This includes the provision to roll back the system with MyCSP should issues arise across the cutover period, this will allow the government to continue to deliver the service with MyCSP until 31st December 2025. Additionally, the government has options with MyCSP to extend support until the end of May 2026, should this be required. The Cabinet Office made a decision that the services will transfer to Capita on the 1st December 2025. It is unlikely that the government will extend the MyCSP contract as a result of this. The Cabinet Office has ensured that there is sufficient contingency in the Capita systems to ensure the delivery of service is increased this includes tightening of the commercial levers which will hold Capita to account for failures. Capita has worked collaboratively with relevant stakeholders and suppliers to develop strategies for identification and resolution of problems and risks. The Cabinet Office is confident that the service proposed and tested by Capita is robust and will generate real change to the members via increased automation and digitisation. The Cabinet Office has informed the Committee chair of the decision to proceed with the transition to Capita.