Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
Capita's staffing levels require replanning due to delayed IT automation and missed milestones
Recommendation
Capita is planning to have 33 fewer staff in its first year running the Scheme than the 332 MyCSP had at the start of 2025.16 When we queried whether that would be enough to provide the right levels of service to customers, the Cabinet Office told us that it had expected fewer staff to be required as increased automation and technology would enable Capita to operate with less resource. For example, it was assumed in Capita’s plans that 95% of transactions would be automated. However, it is clear that the Cabinet Office no longer expects that to be the case.17 This is because as part of the transition period, Capita has missed milestones for delivering its IT infrastructure and has agreed with the Cabinet Office to produce a simplified IT solution on 1 December 2025 to de-risk delivery, with further functionality currently expected to be deployed by March 2026.18 The Cabinet Office told us that with fewer transactions now expected to be automated than had been initially planned, Capita would need to replan resource levels accordingly.19 Remedy
Government Response Summary
The government agrees and states that Capita's financial cost model identifies the minimum staffing levels required and that Capita is recruiting an additional 60% of staff to bolster the team and deal with backlogs, with a large number already recruited and in training, and the government says the transition to Capita has already happened.
Government Response
Accepted
HM Government
Accepted
1. PAC conclusion: Since at least 2023, customer service levels have been unacceptable as MyCSP has struggled to retain sufficient staff numbers. Capita is planning to employ even fewer staff. 1. PAC recommendation: The Cabinet Office should explain in its Treasury Minute response how it has assured itself that there will be sufficient resources available to administer the scheme from 1st December 2025 if: 30 • the promised transition to Capita’s IT platform occurs as planned; and • that transition does not occur as planned. 1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 The financial cost model provided by Capita as part of the contractual bid document identifies the minimum level of staff across all disciplines to run the services taking account of continuous improvement opportunities, technological advances and increases in automation over time. This includes both transition and Service Commencement up to the full potential 10 years of the contract. Capita will provide 6 monthly updates on their staffing levels. Clearly outlining vacancies and deficiencies to ensure that there will be no disruption to these activities. The Cabinet Office require a detailed breakdown of the resource profiling for the minimum of the following areas: • BAU work • Exit Schemes • Payroll migrations • In flight projects, including Employer statement of Work 1.3 In addition to the identified and agreed minimum staffing levels mentioned above, which is slightly less than the numbers expected to TUPE from MyCSP to Capita from 1st December, Capita is recruiting an additional 60% of staff to bolster the team to deal quickly with any backlogs of work in progress. This includes Exit Schemes and any other urgent projects such as Remedy. A large number of the additional 60% are already recruited and going through training. In addition to this Capita is working on further flexible staffing arrangements to cover elasticity in demand over the next 12 months. 1.4 The second bullet to this recommendation no longer requires an answer as it has been confirmed that the service transitioned to Capita on the 1st December.