Capita awarded UK health contact center contract amid pension service failures

The UK government has awarded Capita a £31 million contract to establish a public health contact center for the UK Health Security Agency (UKHSA). The deal, which begins in November, includes provisions to scale up to a £350 million workload during a major health emergency, such as a pandemic.

This contract award comes amid significant criticism regarding Capita’s management of the Civil Service Pension Scheme (CSPS). Since taking over administration in December 2023, the company has faced issues with online systems, leaving some retired civil servants without pension payments or necessary paperwork. The government has withheld £10 million in payments due to these service failures and has engaged an independent auditor to review the situation.

The Public and Commercial Services Union (PCS) has highlighted the impact on retirees, noting that some individuals have been forced to access private pensions early due to the lack of clarity and payments from the CSPS. While the government considers bringing pension services back in-house, Capita has secured this new role to provide cross-government surge services for the UKHSA.