UK's Capita hit with new review over troubled pension scheme contract

Oct 2 (Reuters) - Britain's Capita has been hit with a fresh government review over its handling of the troubled civil service pension scheme, with the outsourcing firm saying on Friday that its performance remains below expected standards. 

The probe adds to mounting pressure on Capita over a contract that has become a flashpoint for broader concerns about the outsourcing of critical public services to the private sector.

The National Audit Office said it would undertake a review of the scheme's administration, building on an earlier investigation from June 2025 and forming part of accountability arrangements that apply to major public service contracts.

Capita said it had made "good operational progress" over the last two months across priority areas of the scheme since its half-year results in August and was implementing further automation and stronger governance to improve service. 

(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)