The company’s valuation took a sharp hit in early afternoon trading, with shares falling 34 pence to 291 pence. This decline deepens a broader downward trend for the year, leaving the stock down 28% since January. The current operational crisis centers on significant delays in handling sensitive member interactions, a problem that has plagued the project since the company took over the contract late last year.

Capita, which secured the 10-year, 239 million pound contract in November 2023, claims it now has the necessary automation and internal processes to clear the backlog. The firm inherited 86,000 unresolved cases from the previous administrator, a legacy issue that compounded earlier complaints regarding portal access and customer service wait times. Management stated they are working alongside the Cabinet Office to stabilize the service, though the market reaction suggests skepticism remains regarding the timeline for a full recovery.