Scope
Reference
C5154
Description
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 further defines in the specification document.
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 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.
Conditions of Participation are set out below and will be described in detail in Procurement Specific Questionnaire (PSQ).
All bids will be assessed based on legal, financial capacity and technical ability.
Core Conditions of Participations:
• registration on the Central Digital Platform
• meeting all legislative requirements to operate the required service in the UK
• being fully registered member of the Financial Conduct Authority
• being registered Payment Service Provider (PSP)
• evidence intention to have all required insurances in place
• being able to provide an independent service without integration with any of the DWP systems
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.
Total value (estimated)
- £14,649,875 excluding VAT
- £17,579,849 including VAT
Above the relevant threshold
Contract dates (estimated)
- 5 February 2026 to 4 February 2029
- Possible extension to 4 February 2031
- 5 years
Description of possible extension:
Up to 24 months.
Main procurement category
Services
CPV classifications
- 66000000 - Financial and insurance services
Contract locations
- UK - United Kingdom
Participation
Particular suitability
- Small and medium-sized enterprises (SME)
- Voluntary, community and social enterprises (VCSE)
Submission
Enquiry deadline
7 October 2025, 11:59pm
Submission type
Tenders
Tender submission deadline
24 October 2025, 11:59pm
Submission address and any special instructions
DWP use Atamis to submit tenders. Please login and use the supplier portal: https://dwp2.my.site.com/s/Welcome
Send through your bid in the "My proposals and quotes" area.
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
5 February 2026
Award criteria
| Name | Type | Weighting |
|---|---|---|
| The Payment Solution | Quality | 18% |
| Funding Solution and Minimum Customer Functionality | Quality | 18% |
| Managing Payments, Returns, and Data Provision | Quality | 15% |
| Social Value | Quality | 10% |
| Customer Support and Safeguarding. Plus, Financial Inclusion | Quality | 8% |
| Implementation, Migration and Set-up | Quality | 6% |
| Disaster Recovery, Business Continuity, and Incident Management | Quality | 5% |
| DWP Agent Portal, Helpdesk Support, and Training. Plus, Management Information and Reporting | Quality | 5% |
| Security, Fraud Prevention, Data Protection, and Audit. Plus, Accessibility and Regulatory Compliance | Quality | 5% |
| Financial Services | Quality | 5% |
| ISQ | Quality | 5% |
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Competitive flexible procedure
Competitive flexible procedure description
Procurement with tender, and evaluation. No further stages planned at this stage.
Justification for not publishing a preliminary market engagement notice
The service was altered from a 2 lot to a single service. The previous 2 lot procurement had a UK2 procurement notice published: https://www.find-tender.service.gov.uk/Notice/011609-2025
Documents
Associated tender documents
https://dwp2.my.site.com/s/Welcome
Go to the above link then click on "supplier registration here".
Then click on the supplier login button with the your login details.
Under find opportunities and click here.
Select Payment Exceptions Service C5141
Contracting authority
Department for Work & Pensions
- Public Procurement Organisation Number: PJCP-7274-TLRQ
Peel Park Brunel Way
Blackpool
FY4 5ES
United Kingdom
Email: louise.rice@dwp.gov.uk
Region: UKD42 - Blackpool
Organisation type: Public authority - central government