Capita expects to lose up to £40m over pension scheme fiasco

Outsourcing firm counts cost of failures that left retired UK civil servants without an income for months

Capita has revealed that the bill for cleaning up its mess at the crisis-hit Civil Service Pension Scheme could wipe up to £40m off annual profits – a day after its chief executive apologised to MPs for a “very poor service”.

The company had faced a grilling at a Commons committee hearing on Wednesday, with its chief executive Adolfo Hernandez repeatedly apologising for failures that have left thousands of civil servants waiting for payments and retirement quotes.