UK.gov withholds £10M payment from Capita over pensions project fiasco, as dispute continues

public sector

After CEO promised 'flagship use-case' for AI, retired scheme members still struggling to make ends meet, MPs hear

The UK government has withheld £10 million in payments to tech and business process outsourcing biz Capita following the disastrous takeover of the Civil Service pensions scheme (CSPS).

The penalties (£9.9 million) in the £239 million contract relate to the transition from the earlier scheme provider to the Capita service. Since the service went live in December last year, Capita has continued to miss the majority of its KPIs and is locked in a dispute with the government over further penalties, MPs heard yesterday. The outsourcing giant apologized for its performance to MPs in the meeting, which can be viewed here.

Capita had promised to use AI to help automate the administration of the 1.7-million member pensions scheme. But after The Register revealedits troubled launch in December last...

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