Capita has not agreed to reimburse the UK government for the costs of recovering the Civil Service Pension Scheme (CSPS) it administers. The company was questioned in a parliamentary hearing after issues emerged with the scheme’s online system following its December 2025 launch.

Capita won a seven‑year, £239 million contract in November 2023 to run the CSPS, taking over from MyCSP, which had managed the scheme under a 2012 agreement.

During the hearing, Cabinet Office Minister Nick Thomas‑Symonds said the government deployed 140 officials to a pensions recovery team on January 13 and would seek full repayment of the surge‑intervention costs. Permanent Secretary Angela MacDonald estimated the 2026‑27 fiscal year expense at £12.5 million, covering 40 staff beyond the surge team.

Chief Executive Adolfo Hernandez said Capita would need a commercial discussion before deciding on payment and declined to confirm whether earlier spending would be covered. He emphasized that multiple decisions required a holistic review.

Parliamentary Committee Chair Sir Geoffrey Clifton‑Brown rejected Hernandez’s remarks, stating that the minister’s demand for full payment from February was unacceptable. Hernandez replied that the relevant conversation had not yet taken place and that an offer had been made.

Capita had pledged to return the CSPS to normal service by the end of June, a deadline missed, and said normal operations for all but the most complex cases would resume by September. The government has penalized Capita £10 million for performance failures during the transition and is negotiating further penalties.

Hernandez previously apologized for Capita’s handling of the CSPS.