Scope
Reference
PA23 PES
Description
Payment Exception Service is a cash-out over the counter service required to fulfil the Secretary of State obligation to pay benefit and pensions payments on time, on the due date, to the correct customer.
The service supports unbanked customers to receive payment of entitlement through an alternate method of payment.
The new service will include Lots 1) Cash Disbursement Service 2) Supporting Financial Inclusion
Total value (estimated)
- £25,000,000 excluding VAT
- £30,000,000 including VAT
Above the relevant threshold
Contract dates (estimated)
- 26 January 2026 to 25 January 2031
- Possible extension to 7 December 2033
- 7 years, 10 months, 13 days
Description of possible extension:
Allow the safe transition across to a replacement service and provides payment continuity to customers.
Main procurement category
Services
CPV classifications
- 66000000 - Financial and insurance services
Contract locations
- UK - United Kingdom
Lot 1. Cash Disbursement Service
Description
Service to be accessible nationwide to deliver a cash out disbursement
Lot value (estimated)
- £20,000,000 excluding VAT
- £24,000,000 including VAT
Same for all lots
CPV classifications, contract locations and contract dates are shown in the Scope section, because they are the same for all lots.
Lot 2. Supporting Financial Inclusion
Description
Support customers to move across to standard banking products
Lot value (estimated)
- £5,000,000 excluding VAT
- £6,000,000 including VAT
Same for all lots
CPV classifications, contract locations and contract dates are shown in the Scope section, because they are the same for all lots.
Submission
Publication date of tender notice (estimated)
10 July 2025
Enquiry deadline
7 August 2025, 11:59pm
Submission type
Tenders
Tender submission deadline
21 August 2025, 11:59pm
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
26 January 2026
Award criteria
Lot 1. Cash Disbursement Service
| Name | Type |
|---|---|
| Quality | Quality |
Weighting description
Tender will be awarded based on technical ability, innovation, quality, price, social value
Lot 2. Supporting Financial Inclusion
| Name | Type |
|---|---|
| Quality | Quality |
| Price | Price |
| Social Value | Quality |
Weighting description
Tender will be awarded based on technical ability, innovation, quality, price, social value
Procedure
Procedure type
Competitive flexible procedure
Contracting authority
Department for Work and Pensions
- Public Procurement Organisation Number: PJCP-7274-TLRQ
Peel Park Control Centre, Brunel Way
Blackpool
FY4 5ES
United Kingdom
Region: UKD42 - Blackpool
Organisation type: Public authority - central government