Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Capita's pension scheme transition experiences significant delays, impacting IT and payments withheld
Recommendation
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.45 At the end of March 2025, the Cabinet Office had withheld £9.6 million from Capita in transition payments due to delays.46 To derisk delivery, the Cabinet Office and Capita have agreed to deliver a simplified IT solution in December 2025, delaying expected greater functionality until at least March 2026.47 Prior to our evidence session in early July Capita provided written evidence to the Committee to assure us of its readiness to take on Scheme administration on 1 December 2025. It argued that where milestones have been missed, these have subsequently been met and stated that it was “firmly on track to assume full administration of the CSPS from 1st December 2025” with “enhanced, innovative services for members for when the contract commences”.48
Government Response Summary
The government agrees with the recommendation and has requirements in place with MyCSP to roll back the system should issues arise during the transition to Capita, allowing service delivery to continue with MyCSP until 31st December 2025, with options to extend support until the end of May 2026 if needed. The Cabinet Office has also informed the Committee chair of the decision to proceed with the transition to Capita.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: There is a clear risk that Capita will not be ready to take over administration of the Scheme as planned on 1st December 2025. 5. PAC recommendation: • The Cabinet Office needs to fully develop contingency plans should Capita be unable to take over the administration on 1st December 2025. • The Cabinet Office should write to the Committee with an update on the transition plans following the decision to go ahead with the transition. 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 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. 5.3 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. 5.4 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. 5.5 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. 5.6 The Cabinet Office has informed the Committee chair of the decision to proceed with the transition to Capita.