Tender

Payment Exception Service - Amended Notice

DEPARTMENT FOR WORK & PENSIONS

This public procurement record has 4 releases in its history.

TenderUpdate

23 Oct 2025 at 15:47

TenderUpdate

10 Oct 2025 at 14:22

Tender

09 Sep 2025 at 14:58

Planning

30 Jul 2025 at 14:54

Summary of the contracting process

The Department for Work & Pensions (DWP) in the United Kingdom is currently in the tender stage for a project titled "Payment Exception Service - Amended Notice," aimed at the financial and insurance services industry. The procurement process involves creating a system that facilitates benefit and pensions payments to clients without bank accounts across Great Britain and Northern Ireland. With an amended estimated contract value of approximately £27,038,490, the DWP plans to award this contract on 5th February 2026, with submissions closing on 27th October 2025. This open procurement involves a competitive flexible procedure, and all submissions must be made electronically via the DWP's Atamis supplier portal by the aforementioned deadline.

This tender offers considerable opportunities for businesses, particularly those registered as Payment Service Providers (PSPs) and members of the Financial Conduct Authority, who can meet legislative requirements and provide comprehensive geographical coverage without integrating with DWP systems. The initiative is especially suitable for SMEs and VCSEs that can demonstrate robust financial and technical capacity. The awarded supplier will address the crucial need for inclusive payment services, ensuring accessibility for vulnerable populations, thus aligning with the government's mission to promote financial inclusion. Businesses with capabilities in cash distribution networks and customer financial services will find strategic growth opportunities in this tender.

How relevant is this notice?

Notice Information

Notice Title

Payment Exception Service - Amended 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 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. Please note the values of this notice have been changed as of 10/10/2025.

Lot Information

Lot 1

Renewal: For clarity, the value of PS14,649,875 excluding VAT in the 'Total Value (estimated)' section of the Tender Notice is the estimated value for the initial 3-year period. The value across the total contract term including all potential extensions is PS24,501,147 excluding VAT. We do not consider that this information will have a material impact on providers ability to respond to the ITT documents and therefore it is not necessary to extend the tender deadline or re-open the clarification deadline. However, if any bidder has any questions regarding the clarified values please do contact us via the procurement portal in the usual way.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-056964
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/067964-2025
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender 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
£22,532,075 £10M-£100M
Lots Value
£22,532,075 £10M-£100M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
23 Oct 20251 months ago
Submission Deadline
27 Oct 2025Expired
Future Notice Date
9 Sep 2025Expired
Award Date
Not specified
Contract Period
5 Feb 2026 - 4 Feb 2029 3-4 years
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT FOR WORK & PENSIONS
Additional Buyers

DEPARTMENT FOR WORK AND PENSIONS

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

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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.

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