Tender

Payment Exception Service - Preliminary Market Engagement Notice

DEPARTMENT FOR WORK AND PENSIONS

This public procurement record has 5 releases in its history.

TenderCancellation

20 Jun 2025 at 13:48

Planning

19 Jun 2025 at 14:47

PlanningUpdate

27 Mar 2025 at 15:36

Planning

25 Mar 2025 at 17:10

Planning

21 Mar 2025 at 10:00

Summary of the contracting process

The public procurement process for the "Payment Exception Service" was initially undertaken by the Department for Work and Pensions (DWP) located in Blackpool, United Kingdom. This procurement aimed to engage suppliers to operate a system enabling benefit and pensions recipients without bank accounts to receive their entitlements. Classified under Financial and Insurance Services, the process has reached several stages, with a preliminary market engagement notice recently withdrawn on 20 June 2025 as the project transitioned from a multi-lot to a single service format. Key dates include an initial planning stage between 10 April and 6 May 2025, and an anticipated tender submission in early to mid-September 2025. The process follows the Competitive Flexible procedure under the Procurement Act 2023, with the tender status shifted to 'withdrawn' to reflect the strategic change.

This procurement is a significant opportunity for businesses specialising in financial innovations and services tailored for vulnerable communities. Organisations with expertise in developing inclusive financial solutions, particularly SMEs and VCSEs, could benefit from participating. The procurement lays strong emphasis on innovative and secure services that support financial inclusion and minimise reliance on the Payment Exception Service by facilitating the transition to standard banking products. Businesses that can provide comprehensive cash disbursement services and support DWP's policy goals while adhering to regulatory compliance and technological innovation will find promising prospects in this tender reformation.

Find more tenders on our Open Data Platform.
How relevant is this notice?

D3 Tenders Premium

Win More Public Sector Contracts

AI-powered tender discovery, pipeline management, and market intelligence — everything you need to grow your public sector business.

Notice Title

Payment Exception Service - Preliminary Market Engagement Notice

Notice 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 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. Recent market engagement and 1-2-1 sessions identified new technology and innovation in the market, this has allowed DWP to reflect on their business requirements. DWP has carefully considered whether new technologies will meet the needs of our most vulnerable customers. At the present time 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 that should be on the service are relying on PES over the coming years, to help support them to become financially included. Consequently, it is intended that DWP will include within the specification Lot 1 business requirements which will have as their aim the lowering the number of people depending on the PES. For this reason, DWP will no longer be pursuing the procurement of Lot 2, as described in previous PME notices. 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. The Preliminary Market Engagement Notice linked to this procurement stated that Market Engagement would include Conditions of Participation. This was an error. Any Conditions of Participation that DWP require will be added to the Tender Notice (currently scheduled for 31 July 2025)

Lot Information

Cash Disbursement Service

Service to be accessible nationwide to deliver a cash out disbursement

Renewal: Allow the safe transition across to a replacement service and provides payment continuity to customers.

Supporting Financial Inclusion

Support customers to move across to standard banking products

Renewal: Allow the safe transition across to a replacement service and provides payment continuity to customers.

Planning Information

Market Engagement events occurred between 10 April and 06 May 2025

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04f71a
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/034103-2025
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK12 - Procurement Termination Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Competitive flexible procedure
Tender Suitability
SME, VCSE
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services


CPV Codes

66000000 - Financial and insurance services

Notice Value(s)

Tender Value
£15,945,022 £10M-£100M
Lots Value
£25,000,000 £10M-£100M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
20 Jun 20258 months ago
Submission Deadline
21 Aug 2025Expired
Future Notice Date
31 Jul 2025Expired
Award Date
Not specified
Contract Period
26 Jan 2026 - 25 Jan 2031 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Withdrawn
Lots Status
Withdrawn
Awards Status
Cancelled
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT FOR WORK AND PENSIONS
Additional Buyers

MISSING

Contact Name
Louise Rice
Contact Email
louise.rice@dwp.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
BLACKPOOL
Postcode
FY4 5ES
Post Town
Blackpool
Country
England

Major Region (ITL 1)
TLD North West (England)
Basic Region (ITL 2)
TLD4 Lancashire
Small Region (ITL 3)
TLD42 Blackpool
Delivery Location
Not specified

Local Authority
Blackpool
Electoral Ward
Stanley
Westminster Constituency
Blackpool South

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

Download

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

{
    "tag": [
        "compiled"
    ],
    "id": "ocds-h6vhtk-04f71a-2025-06-20T14:48:58+01:00",
    "date": "2025-06-20T14:48:58+01:00",
    "ocid": "ocds-h6vhtk-04f71a",
    "initiationType": "tender",
    "planning": {
        "documents": [
            {
                "id": "010576-2025",
                "documentType": "plannedProcurementNotice",
                "noticeType": "UK3",
                "description": "Planned procurement notice on Find a Tender",
                "url": "https://www.find-tender.service.gov.uk/Notice/010576-2025",
                "datePublished": "2025-03-21T10:00:02Z",
                "format": "text/html"
            },
            {
                "id": "011229-2025",
                "documentType": "marketEngagementNotice",
                "noticeType": "UK2",
                "description": "Preliminary market engagement notice on Find a Tender",
                "url": "https://www.find-tender.service.gov.uk/Notice/011229-2025",
                "datePublished": "2025-03-25T17:10:09Z",
                "format": "text/html"
            },
            {
                "id": "011609-2025",
                "documentType": "marketEngagementNotice",
                "noticeType": "UK2",
                "description": "Preliminary market engagement notice on Find a Tender",
                "url": "https://www.find-tender.service.gov.uk/Notice/011609-2025",
                "datePublished": "2025-03-27T15:36:09Z",
                "format": "text/html"
            },
            {
                "id": "033798-2025",
                "documentType": "marketEngagementNotice",
                "noticeType": "UK2",
                "description": "Preliminary market engagement notice on Find a Tender",
                "url": "https://www.find-tender.service.gov.uk/Notice/033798-2025",
                "datePublished": "2025-06-19T15:47:37+01:00",
                "format": "text/html"
            }
        ],
        "milestones": [
            {
                "id": "engagement",
                "type": "engagement",
                "description": "Market Engagement events occurred between 10 April and 06 May 2025",
                "dueDate": "2025-04-25T23:59:59+01:00",
                "status": "met",
                "dateMet": "2025-05-06T00:00:00+01:00"
            }
        ]
    },
    "parties": [
        {
            "id": "GB-PPON-PJCP-7274-TLRQ",
            "name": "Department for Work and Pensions",
            "identifier": {
                "scheme": "GB-PPON",
                "id": "PJCP-7274-TLRQ"
            },
            "address": {
                "streetAddress": "Peel Park Control Centre, Brunel Way",
                "locality": "Blackpool",
                "postalCode": "FY4 5ES",
                "country": "GB",
                "countryName": "United Kingdom",
                "region": "UKD42"
            },
            "contactPoint": {
                "name": "Louise Rice",
                "email": "Louise.rice@dwp.gov.uk"
            },
            "roles": [
                "buyer"
            ],
            "details": {
                "url": "http://www.gov.uk",
                "classifications": [
                    {
                        "scheme": "UK_CA_TYPE",
                        "id": "publicAuthorityCentralGovernment",
                        "description": "Public authority - central government"
                    }
                ]
            }
        }
    ],
    "buyer": {
        "id": "GB-PPON-PJCP-7274-TLRQ",
        "name": "Department for Work and Pensions"
    },
    "tender": {
        "id": "PA23 PES",
        "legalBasis": {
            "id": "2023/54",
            "scheme": "UKPGA",
            "uri": "https://www.legislation.gov.uk/ukpga/2023/54/contents"
        },
        "title": "Payment Exception Service - Preliminary Market Engagement Notice",
        "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 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. Recent market engagement and 1-2-1 sessions identified new technology and innovation in the market, this has allowed DWP to reflect on their business requirements. DWP has carefully considered whether new technologies will meet the needs of our most vulnerable customers. At the present time 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 that should be on the service are relying on PES over the coming years, to help support them to become financially included. Consequently, it is intended that DWP will include within the specification Lot 1 business requirements which will have as their aim the lowering the number of people depending on the PES. For this reason, DWP will no longer be pursuing the procurement of Lot 2, as described in previous PME notices. 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. The Preliminary Market Engagement Notice linked to this procurement stated that Market Engagement would include Conditions of Participation. This was an error. Any Conditions of Participation that DWP require will be added to the Tender Notice (currently scheduled for 31 July 2025)",
        "status": "withdrawn",
        "items": [
            {
                "id": "1",
                "additionalClassifications": [
                    {
                        "scheme": "CPV",
                        "id": "66000000",
                        "description": "Financial and insurance services"
                    }
                ],
                "deliveryAddresses": [
                    {
                        "region": "UK",
                        "country": "GB",
                        "countryName": "United Kingdom"
                    },
                    {
                        "region": "UK",
                        "country": "GB",
                        "countryName": "United Kingdom"
                    },
                    {
                        "region": "UK",
                        "country": "GB",
                        "countryName": "United Kingdom"
                    },
                    {
                        "region": "UK",
                        "country": "GB",
                        "countryName": "United Kingdom"
                    }
                ],
                "relatedLot": "1"
            },
            {
                "id": "2",
                "additionalClassifications": [
                    {
                        "scheme": "CPV",
                        "id": "66000000",
                        "description": "Financial and insurance services"
                    }
                ],
                "deliveryAddresses": [
                    {
                        "region": "UK",
                        "country": "GB",
                        "countryName": "United Kingdom"
                    }
                ],
                "relatedLot": "2"
            }
        ],
        "value": {
            "amountGross": 19134026,
            "amount": 15945022,
            "currency": "GBP"
        },
        "procurementMethod": "open",
        "procurementMethodDetails": "Competitive flexible procedure",
        "mainProcurementCategory": "services",
        "aboveThreshold": true,
        "submissionTerms": {
            "electronicSubmissionPolicy": "allowed",
            "languages": [
                "en"
            ]
        },
        "tenderPeriod": {
            "endDate": "2025-08-21T23:59:00+01:00"
        },
        "enquiryPeriod": {
            "endDate": "2025-08-07T23:59:00+01:00"
        },
        "awardPeriod": {
            "endDate": "2026-01-26T23:59:59+00:00"
        },
        "lots": [
            {
                "id": "1",
                "title": "Cash Disbursement Service",
                "description": "Service to be accessible nationwide to deliver a cash out disbursement",
                "status": "withdrawn",
                "value": {
                    "amountGross": 24000000,
                    "amount": 20000000,
                    "currency": "GBP"
                },
                "awardCriteria": {
                    "weightingDescription": "Tender will be awarded based on technical ability, innovation, quality, price, social value",
                    "criteria": [
                        {
                            "type": "quality",
                            "name": "Quality"
                        }
                    ]
                },
                "contractPeriod": {
                    "startDate": "2026-07-13T00:00:00+01:00",
                    "endDate": "2029-07-12T23:59:59+01:00",
                    "maxExtentDate": "2031-07-12T23:59:59+01:00"
                },
                "hasRenewal": true,
                "renewal": {
                    "description": "Allow the safe transition across to a replacement service and provides payment continuity to customers."
                },
                "suitability": {
                    "sme": true,
                    "vcse": true
                }
            },
            {
                "id": "2",
                "title": "Supporting Financial Inclusion",
                "description": "Support customers to move across to standard banking products",
                "status": "withdrawn",
                "value": {
                    "amountGross": 6000000,
                    "amount": 5000000,
                    "currency": "GBP"
                },
                "awardCriteria": {
                    "weightingDescription": "Tender will be awarded based on technical ability, innovation, quality, price, social value",
                    "criteria": [
                        {
                            "type": "quality",
                            "name": "Quality"
                        },
                        {
                            "type": "price",
                            "name": "Price"
                        },
                        {
                            "type": "quality",
                            "name": "Social Value"
                        }
                    ]
                },
                "contractPeriod": {
                    "startDate": "2026-01-26T00:00:00+00:00",
                    "endDate": "2031-01-25T23:59:59+00:00",
                    "maxExtentDate": "2033-12-07T23:59:59+00:00"
                },
                "hasRenewal": true,
                "renewal": {
                    "description": "Allow the safe transition across to a replacement service and provides payment continuity to customers."
                }
            }
        ],
        "communication": {
            "futureNoticeDate": "2025-07-31T23:59:59+01:00"
        },
        "amendments": [
            {
                "id": "011609-2025",
                "description": "Detail added"
            }
        ],
        "documents": [
            {
                "id": "034103-2025",
                "documentType": "tenderCancellationNotice",
                "noticeType": "UK12",
                "description": "Procurement termination notice on Find a Tender",
                "url": "https://www.find-tender.service.gov.uk/Notice/034103-2025",
                "datePublished": "2025-06-20T14:48:58+01:00",
                "format": "text/html"
            }
        ]
    },
    "language": "en",
    "awards": [
        {
            "id": "1",
            "status": "cancelled",
            "statusDetails": "Following legal and policy advice, DWP have made the decision to abandon the current procurement project on Jaggaer due to a change in direction from a multi-Lot provision to a single service. As there are technical changes to the procurement, including the removal of the \"Lot 2\" services, DWP considers that a new and replacement project will ensure DWP are being fully transparent in their change of direction. DWP remains committed to procurement of a Payment Exception Service (broadly aligned with the Lot 1 Services under this Procurement) under a new procurement. Publication of all details of the new procurement will be made today (20 June) The Tender Notice date remains unchanged (31 July)",
            "finalStatusDate": "2025-06-20T00:00:00+01:00",
            "relatedLots": [
                "2",
                "1"
            ]
        }
    ]
}