MOD plans Capita replacement amid recruitment failures

In a Defence Committee session on 17 December 2024, senior Ministry of Defence (MOD) officials faced scrutiny over the ongoing recruitment crisis and the performance of contractor Capita.

The discussion, chaired by Tanmanjeet Singh Dhesi MP, highlighted the Army’s inability to meet recruitment targets, with just 63% achieved this year—the worst performance in five years.

Addressing the issue, Dhesi criticised the figures: “It’s a dire situation. Five years ago, recruitment rates were at 95%, but they have now slumped to 63%. This is less than two-thirds of the target and is simply unacceptable.”

David Williams, MOD Permanent Secretary, acknowledged the shortcomings of the Capita contract, which manages Army recruitment. He detailed plans to replace it with a new Armed Forces recruitment programme, stating: “We are well advanced in the replacement project for that contract, the Armed Forces recruitment project, which will operate on a tri-service basis. We expect to place a contract by the spring of next year, and the new programme will have a phased introduction to allow the supplier two years to step up recruitment requirements fully.”

Williams also outlined lessons learned from Capita’s poor performance, highlighting the need for personal engagement by uniformed personnel during recruitment and the importance of reducing bureaucratic delays. “This Government has set out measures, including reviews of medical standards, to reduce the number of applicant rejections and shorten the timeline from application to training,” he said.

Lieutenant General Sir Robert Magowan, Deputy Chief of the Defence Staff for Military Capability, echoed these concerns. “Recruitment and retention are critical for our military capability. We need to recruit more and retain more across all three services,” he said, admitting that the Army’s missed targets were a serious concern. He assured MPs that new measures outlined by Williams would address the issues.

Lincoln Jopp MP queried whether the MOD’s new targets, including faster recruitment timelines, would impact the tendering process for the replacement programme. Williams clarified: “We don’t need to revisit the commercial arrangements. Many of the measures to speed up the pipeline, such as electronic sharing of medical records with candidates’ GPs, are independent of the contract. These measures will ensure we meet the new timelines without renegotiation.”

Derek Twigg MP pressed Williams on what specific improvements the new system would deliver compared to Capita’s performance. Williams explained: “Expressions of interest are high, but the process for medical checks, background verification, and sequencing of tasks is too slow. The new programme will focus on making conditional offers earlier and reducing unnecessary delays.”

Williams acknowledged the historical fluctuations in recruitment success, noting: “Where we had got to five years ago reflected a focused improvement in the operation of the contract. However, progress stalled, particularly during COVID-19, and we’ve not seen a recovery since.”