Capita Faces UK Audit Review Over Civil Service Pension Contract Performance

UK outsourcing firm Capita plc will face a review by the National Audit Office (NAO) over its administration of the Civil Service Pension Scheme, the company confirmed on Friday. Capita acknowledged that its performance on the major public contract has fallen below the standards expected by the UK government and scheme members.

NAO Scrutiny Follows Poor Performance

The review by the NAO, which serves as the UK's independent public spending watchdog, follows an investigation that was published in June 2025, according to Capita. The company stated it accepts that service levels have not met expectations and has made the remediation of the contract a priority.

Capita did not provide specific details on the scope or timing of the NAO's review. The company said it will work with the National Audit Office, the Cabinet Office, and other relevant parties throughout the process.

Remediation Efforts Underway

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In its statement, Capita reported it had made operational progress in August and September, following its half-year results on Aug. 4. The company said it is focused on improving the service through several measures, including:

• Greater use of automation
• Tighter operational oversight
• Better reporting of performance metrics

For investors, an NAO review highlights the operational and reputational risks associated with major government contracts. The outcome could impact investor confidence in the company's ability to execute on its portfolio of public service agreements.