Capita CEO's £1.6M Pay Packet Draws Fury as Civil Service Pension Crisis Deepens

NewsData.io · United States · Sep 18, 2026

Capita CEO Adolfo Hernandez received a £1.6m pay packet while more than 4,100 retired UK civil servants were forced to take emergency government loans due to the company's botched administration of the Civil Service Pension Scheme. MPs debated the crisis in Westminster Hall, with growing pressure to insource the contract after Capita's AI-driven technology promises failed to materialize following a December 2025 contract takeover. The UK government has already terminated Capita's Royal Mail pension contract and is actively shaping a strategy to bring the CSPS back in-house. The scandal has broad implications for outsourcing trends in public-sector workforce management and the viability of large-scale government staffing contracts.