[UK] Concerns raised as Capita awarded £700m civil service payroll contract

In the UK, the Public and Commercial Services Union (PCS) has expressed concerns after Capita was awarded a £700m civil service payroll contract by the government, Civil Service World reports.

According to PCS, the Department for Work and Pensions (DWP) has named Capita its preferred bidder to handle payroll for more than 250,000 staff across some of the biggest government departments. 

The union reportedly described the decision as a “reckless gamble”. It warned that any disruption to pay would have immediate consequences for civil servants, already struggling.

Its warning comes as issues with the Civil Service Pension Scheme, now run by Capita, have led to thousands of former civil servants going without pension payments in recent months.

The contract is under the government’s “Synergy” shared services cluster, part of a wider strategy to collapse 286 legacy systems into five major platforms through a single cloud-based Oracle Enterprise Resource Planning system. It covers HR, payroll, finance and procurement.

The departments covered by the contract are DWP,  the Ministry of Justice, the Home Office and the Department for Environment, Food and Rural Affairs, and their agencies. DWP is the lead contracting authority for the Synergy Programme.

Fran Heathcote - PCS general secretary - said, “Capita is already at the centre of a pensions crisis that has left retired civil servants in distress. Privatisation is a failure, so why does the government continue to reward those responsible with yet another massive public contract?

“Ministers can see these crises unfolding in real time, yet they are prepared to place the pay of 250,000 serving staff at risk.

“PCS is calling on the government to urgently reconsider. Our members cannot afford missed or delayed pay because mortgages, rent and bills don’t wait. The government must guarantee that staff will not pay the price for contractor failure, which would have serious and immediate consequences for thousands of working families,” she added.

PCS warned that the pensions crisis is not an isolated incident. It noted that in 2025, the Information Commissioner's Office fined Capita £14m following a 2023 data breach that exposed the personal information of millions, while, in 2024, Capita achieved just 63 per cent of its army recruitment target in its contract with the MoD.

A DWP spokesperson said, “We have delivered a robust procurement process, in line with government procurement regulations, to identify a preferred bidder for the Synergy BPS contract.

"We stand ready to work with the successful bidder to ensure a smooth transition of service. Our priority remains to ensure continuity of service and value for money for the public.”

Capita was reportedly approached for comment.

Source: Civil Service World

(Link and quotes via original reporting)

In the UK, the Public and Commercial Services Union (PCS) has expressed concerns after Capita was awarded a £700m civil service payroll contract by the government, Civil Service World reports.

According to PCS, the Department for Work and Pensions (DWP) has named Capita its preferred bidder to handle payroll for more than 250,000 staff across some of the biggest government departments. 

The union reportedly described the decision as a “reckless gamble”. It warned that any disruption to pay would have immediate consequences for civil servants, already struggling.

Its warning comes as issues with the Civil Service Pension Scheme, now run by Capita, have led to thousands of former civil servants going without pension payments in recent months.

The contract is under the government’s “Synergy” shared services cluster, part of a wider strategy to collapse 286 legacy systems into five major platforms through a single cloud-based Oracle Enterprise Resource Planning system. It covers HR, payroll, finance and procurement.

The departments covered by the contract are DWP,  the Ministry of Justice, the Home Office and the Department for Environment, Food and Rural Affairs, and their agencies. DWP is the lead contracting authority for the Synergy Programme.

Fran Heathcote - PCS general secretary - said, “Capita is already at the centre of a pensions crisis that has left retired civil servants in distress. Privatisation is a failure, so why does the government continue to reward those responsible with yet another massive public contract?

“Ministers can see these crises unfolding in real time, yet they are prepared to place the pay of 250,000 serving staff at risk.

“PCS is calling on the government to urgently reconsider. Our members cannot afford missed or delayed pay because mortgages, rent and bills don’t wait. The government must guarantee that staff will not pay the price for contractor failure, which would have serious and immediate consequences for thousands of working families,” she added.

PCS warned that the pensions crisis is not an isolated incident. It noted that in 2025, the Information Commissioner's Office fined Capita £14m following a 2023 data breach that exposed the personal information of millions, while, in 2024, Capita achieved just 63 per cent of its army recruitment target in its contract with the MoD.

A DWP spokesperson said, “We have delivered a robust procurement process, in line with government procurement regulations, to identify a preferred bidder for the Synergy BPS contract.

"We stand ready to work with the successful bidder to ensure a smooth transition of service. Our priority remains to ensure continuity of service and value for money for the public.”

Capita was reportedly approached for comment.

Source: Civil Service World

(Link and quotes via original reporting)