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Sopra Steria has expanded its legal challenge to Capita’s shared-services contract for four UK government departments, alleging that terms in the agreement gave Capita an advantage and shifted delivery risks to the Department for Work and Pensions (DWP). The new claims followed Sopra Steria obtaining an unredacted copy of the DWP–Capita contract. The allegations remain disputed; the available reporting establishes no court finding that the procurement was unlawful.
Why is Sopra Steria challenging the award?
Sopra Steria, whose SSCL unit was the incumbent provider for some of the participating departments, began challenging the award after Capita was named the winner in March 2026. The company’s original claim alleged that DWP accepted an “abnormally low” bid based on staffing significantly below current levels. Its challenge widened after it obtained an unredacted copy of the contract. The Register reported the expanded claims on 1 October 2026.
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What the expanded claims allege
Sopra Steria says a Project Change Clause could allow DWP to fund technology to make up for deficiencies in Capita’s tender. It argues that this could reduce the risk Capita needed to account for in its bid. The company also alleges that responsibilities assigned to DWP shifted risk to the department, and that equivalent terms were not offered to Sopra Steria.
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How DWP and Capita respond
DWP says bidders had equal time and opportunity to negotiate and received the same response when they made the same request or raised the same question. The department says concessions negotiated in response to a bidder’s request were disclosed only to that bidder; it argues that differences therefore reflected the points Capita raised, rather than unequal treatment. DWP said: “We don’t comment on live legal proceedings.”
Capita said it took part in a robust procurement process and was ready to work with DWP on a smooth transition, describing value for money for the public as its priority. That is the company’s position, not a finding on the disputed claims.
| Issue | Sopra Steria’s allegation | DWP’s account |
|---|---|---|
| Negotiated terms | Equivalent terms were not offered to Sopra Steria. | Bidders had equal opportunities; different concessions reflected requests made by Capita. |
| Technology and delivery risk | A Project Change Clause and responsibilities assigned to DWP could reduce Capita’s exposure while increasing the department’s risk. | DWP disputes unequal treatment and says bidders received the same response to the same question or request. |
What does the Capita–DWP deal cover?
The contract covers finance, payroll, human resources, procurement and other shared services for four departments: DWP, the Ministry of Justice, the Department for Environment, Food and Rural Affairs, and the Home Office. DWP leads the Synergy shared-services programme, which aims to move the departments onto a common software-as-a-service enterprise resource planning (ERP) and HR platform, alongside shared business processes. The Register’s report on the expanded challenge describes the contract and programme.
It is separate from a reported £711 million deal with Oracle and IBM for ERP software and systems integration. The Register put the value of technology-supplier contracts across the wider programme at about £1.7 billion; that figure is a programme-wide total, not the value of Capita’s services contract. The Register’s report on Capita’s award also identifies SSCL as the incumbent for some departments. SSCL, formerly a joint venture with the UK government, is now wholly owned by Sopra Steria.
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Why is the contract described as both £370 million and up to £873.4 million?
The figures refer to different measures, periods and inclusions; they are not alternative prices for precisely the same scope. The £370 million figure is reported as Capita’s ten-year transaction price or order-book value and excludes change and expansion services expected during the contract. DWP’s later estimates include broader projected values.
| Figure | What it describes | Attribution and qualification |
|---|---|---|
| £370 million | Ten-year transaction price or order-book value | Reported for Capita in 2026; excludes expected change and expansion services. The Register, 1 October 2026. |
| £606.6 million | Estimated undiscounted value over the initial seven-year term | DWP estimate reported in 2026. The Register, 1 October 2026. |
| £873.4 million | Estimated undiscounted value over a maximum ten years, including estimated projects and optional services | DWP estimate reported in 2026. DWP says Capita has no automatic entitlement to the additional work. The Register, 1 October 2026. |
| £958.7 million | Tender-stage estimate for ten years, including extensions | DWP estimate from 2024, reported in coverage of the original challenge. The Register, 5 June 2026. |
| £711 million | Separate ERP software and systems-integration deal | Reported value of the Oracle and IBM contract, not Capita’s shared-services contract. The Register, 1 October 2026. |
When could the court hear the case?
DWP launched the competition in September 2024, and Capita was announced as the winner in March 2026. Sopra Steria had challenged the award from March. On 26 August 2026, The Register reported that a trial was scheduled for early 2028, with the possibility of settlement discussions before then. The Register’s 26 August report on the case timetable described the trial date as pending attempts to settle out of court.
The 1 October report records the expanded claims following disclosure of the unredacted contract. The available reporting does not establish that the parties have settled, that a judgment has been issued, or that a court has ruled on the merits. The Register’s 1 October report gives the latest account covered here.
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