The National Audit Office (NAO) will investigate the transfer and administration of the Civil Service Pension Scheme (CSPS) following ongoing service issues since Capita took over the contract in December 2025.

The review will examine how the Cabinet Office managed the transition to Capita, how the scheme has been administered since the transfer, and the impact on member experience. It is expected to report in winter 2026/27.

Capita said it would cooperate fully with the NAO, Cabinet Office and other relevant stakeholders, adding that remediation of the CSPS remained its “top priority”.

The company acknowledged that current performance remained below the standards expected by scheme members and government, but said it had made operational progress during August and September across priority areas.

It is also implementing further automation and strengthening governance, including improved management information, to improve operational output and member experience.

Capita took over administration of the CSPS from MyCSP on 1 December 2025 under a seven-year contract worth £239m.

However, the NAO noted that Capita had “struggled to administer the scheme effectively” following the transfer, with key service levels repeatedly missed.

The NAO warned that some members had struggled to access information needed to plan their retirement, while others due to retire had experienced delayed pension payments and had to change their plans.

By August 2026, the Cabinet Office had paid more than £22.1m in transitional support loans to more than 3,900 members affected by delays, according to the NAO.

Capita has previously said it inherited a backlog of 86,000 work-in-progress cases and more than 15,000 unread emails when it took over the scheme, contributing to delays in pension quotes, payments and other services.

The new investigation builds on the NAO’s June 2025 review of CSPS administration, which focused on the service provided by MyCSP and preparations for the transfer to Capita.

That earlier investigation found that complaints about the scheme rose to 4,780 in 2024/25 and examined the Cabinet Office’s oversight of the administration arrangements.

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