Capita Failed to Deliver AI for UK Civil Service Pensions

Oct 27, 2026
An independent audit found that Capita failed to provide the automation promised for the Civil Service Pension Scheme. Cabinet Office officials now have access to the contractor's systems and data.

Capita failed to deliver the AI and automation promised for the UK Civil Service Pension Scheme, according to Computer Weekly. A government commissioned audit by Grant Thornton found weak technology, inadequate recovery planning, and ineffective processes for detecting and escalating failures.

"We were promised 'the most AI-enabled pensions service'. It is fair to say that Capita has comprehensively failed to deliver on that commitment," Cabinet Office minister Sally Jameson told MPs. She called progress under Capita abysmal. The contractor began work on the scheme in 2023 and took control in December 2025, but thousands of former civil servants have faced payment problems.

The UK Government now has full access to Capita's relevant systems and data. Officials will monitor performance daily, while the government will publish performance figures every two weeks and assess future delivery options, including bringing core operations in house.

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