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Crapita’s “AI-enabled” pension scheme is a car crash – is it time HMG in-sourced more services?
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Government / capita / Opinion

Crapita’s “AI-enabled” pension scheme is a car crash – is it time HMG in-sourced more services?

"More complex than we thought" lamented CEO

Edward Targett
By  Edward Targett
Updated / Published 4 min read

In November 2025, a senior British government minister was told by the CEO of outsourcer Capita that with the company’s help “the UK Government would be presiding over the largest AI-enabled pension in the UK… a flagship use case.” 

A year later the company – which won a £239 million contract to deliver the Civil Service Pension Scheme, starting December 2025 – has served up a shit sandwich for retired civil servants, auditors are being called in, and the minister is fuming.

Damn, this is tricky work actually

And, having won the tender, Capita’s CEO Adolfo Hernandez then admitted to MPs in July that that scheme is “very complex; more complex than we thought, realistically.”

“Key service levels have been repeatedly missed,” the National Audit Office (NAO) acknowledged today (Friday, October 2.) It will now be investigating Capita’s delivery of the scheme. 

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  • Edward Targett

    Edward Targett

    Ed is a co-founder of The Stack. He previously edited Computer Business Review. He has also covered energy markets. He started his journalism career on local papers. He left school at 15 and has made a living asking "but why?" ever since.