Scope
Description
This is a new Planned Procurement Notice to supersede the previous UK2 Notice. Please refer to previous Notices if necessary. Link - https://www.find-tender.service.gov.uk/Notice/034109-2025
DWP is procuring a Supplier to create and operate a system (the "Payment Exception Service") which will allow benefit and pensions recipients (which DWP refers to as "Customers") without bank accounts to receive payment of entitlement through an alternate method of payment.
The service is required to fulfil the Secretary of State obligation to pay benefit and pensions payments on time, on the due date, to the correct customer.
Customers will need to be able to access their payments in cash at a wide range of geographical locations. Suppliers will need to ensure comprehensive coverage, which DWP will further define in the Tender Notice.
The geographical scope of the Payment Exception Service will be for Great Britain and Northern Ireland.
Benefit payments are usually paid weekly, monthly or 4 weekly.
This will be a "Payment Service" as defined by the Payment Services Regulations 2017.
DWP considers that a simple and robust delivery model is the best way to ensure that particularly vulnerable customers can access their payments.
To meet the Governments mission-led focus, DWP's ambition is to ensure that only customers who genuinely need the service are relying on PES over the coming years. Customers who are able to should be paid by alternative means, to help support them to become financially included. Consequently, it is intended that DWP will include within the specification business requirements which will have as their aim the lowering of the number of people depending on the PES.
DWP estimate the date for suppliers to submit Tenders in this Competitive Flexible Procurement will be early to mid-September 2025 (Tender Submission Date.) It is not envisaged that there will be a separate "Request to Participate" stage.
Conditions of Participation will be set out in the Tender Notice and bids will be assessed based on legal, financial capacity and technical ability.
DWP strongly advise that potential suppliers review the Conditions of Participation and the fundamental requirements carefully before compiling a full bid as failure to meet these requirements may result in your bid being excluded.
Tender Documents may be obtained via DWP e-procurement system. Further details will be provided at Tender stage.
DWP will not be conducting any further Market Engagement in respect of this procurement, as DWP has recently conducted Market Engagement in respect of the services to be included in this procurement. This was completed in the previous procurement as detailed above.
Any Conditions of Participation that DWP require will be added to the Tender Notice.
a)This notice does not relate to a special regime contract.
b)An electronic auction will not be used for this procurement.
c)The contract is a contract for which the United Kingdom has obligations under the GPA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
d)The contract is not awarded by reference to lots.
Total value (estimated)
- £14,649,875 excluding VAT
- £17,579,849 including VAT
Above the relevant threshold
Contract dates (estimated)
- 5 February 2026 to 2 February 2029
- Possible extension to 3 February 2031
- 4 years, 11 months, 27 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
Submission
Publication date of tender notice (estimated)
9 September 2025
Enquiry deadline
7 October 2025, 11:59pm
Submission type
Tenders
Tender submission deadline
24 October 2025, 11:59pm
Languages that may be used for submission
English
Award decision date (estimated)
26 January 2026
Procedure
Procedure type
Competitive flexible procedure
Contracting authority
Department for Work and Pensions
- Public Procurement Organisation Number: PJCP-7274-TLRQ
Caxton House 7th Floor 6-12
London
SW1H 9NA
United Kingdom
Contact name: Louise Rice
Region: UKI32 - Westminster
Organisation type: Public authority - central government