Capita said on Friday that the National Audit Office (NAO) was undertaking a further review of its administration of the Civil Service Pension Scheme (CSPS).

The review builds on an NAO investigation in June 2025 and comes after persistent operational problems at the scheme, which has 1.7 million members. Capita was awarded the contract in November 2023 and has since faced a series of missed deadlines and a substantial backlog of unresolved cases.

Capita said in a statement: "As a strategic supplier to the UK Government, Capita has a long-standing record of cooperating with Parliamentary and regulatory investigations and will continue to engage fully and transparently with the NAO, Cabinet Office and relevant stakeholders.

"Since Capita’s H1 announcement on 4 August, we have made good operational progress in both August and September across priority areas of CSPS.

"Capita recognises the need for continued service improvement, and we are implementing further automation along with stronger governance including improved management information. This will continue to improve operational output and member experience.

"Capita accepts that performance remains below the standards that scheme members and the Government rightly expect. The remediation of CSPS remains the Group’s top priority."

The government previously said the backlog had reached around 120,000 cases, with more than 100 officials brought in to help clear it, contributing to a near 32% fall in first-half adjusted operating profit to £32.2m as CSPS-related costs increased.

Shares were down 2% at around 220p this morning.

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