Planning

Short Term Payment Contingency Service (STPC)

DEPARTMENT FOR WORK & PENSIONS

This public procurement record has 2 releases in its history.

PlanningUpdate

03 Feb 2026 at 16:39

UK1 - Pipeline Notice
Planning

03 Feb 2026 at 16:31

UK1 - Pipeline Notice
Summary of the contracting process

The Department for Work & Pensions (DWP) is planning a procurement process for a Short Term Payment Contingency Service (STPC), as reflected in separate planning notices published on 3rd February 2026. This service falls under the financial and insurance services industry category and addresses two critical components: the Short Term Payment Contingency Service (Lot 1) and the Sponsor Bank Service (Lot 2). Both components are integral to mitigating risks associated with disruptions in internal payment systems, ensuring timely benefit and pension payments. The procurement stage is currently in planning with contracts expiring on 30th June 2026, allowing a potential 12-month extension until 30th June 2027. The purchasing process is slated to formally advance on 8th June 2026, covering services to be delivered nationwide in the United Kingdom, governed by the legal framework UKPGA 2023/54.

This tender presents substantial business growth opportunities, particularly for firms specialising in financial services and banking infrastructure. Companies capable of offering reliable contingency solutions, including payment processing under exceptional circumstances, will find this procurement aligned with their expertise. The contract allows suppliers to bid for each lot individually or both, without requiring the management of one by the other, thus opening options for specialized or multi-capability providers. The scale of DWP's operations, with approximately 2.5 million payments daily, underscores the significance of these services, offering firms a pivotal role in maintaining resilience and reliability in government payment operations.

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Notice Information

Notice Title

Short Term Payment Contingency Service (STPC)

Notice Description

This procurement focuses on the provision of Payment Contingency Services for the Department for Work and Pensions (DWP) and will be structured into two distinct Lots: Lot 1: Short Term Payment Contingency Service Lot 2: Sponsor Bank Service These services are interdependent and, collectively, enable the Department for Work and Pensions to meet its statutory obligations on behalf of the Secretary of State, while also maintaining public confidence in the timely delivery of benefit and pension payments. Lot 1: Short Term Payment Contingency Service This service is required in exceptional circumstances where an internal DWP payment system disruption causes a delay in the release of Bacs payment files, consequently posing a risk to the timely disbursement of funds. These files contain critical payment information relating to various benefit types or pensions, along with the details of the responsible paying department. To mitigate such risks, DWP requires a contingency service to ensure that customers receive their entitlements on their payment due date. This service is essential for maintaining service continuity. Lot 2: Sponsor Bank Service The Sponsor Bank plays a critical enabling role in the operation of the Short Term Payment Contingency Service. It provides the necessary banking infrastructure and support to process Faster Payments on behalf of the DWP. Without this component, the contingency service cannot operate, making the Sponsor Bank a critical element in the successful delivery of the overall solution. This procurement is essential to ensuring that the Department for Work and Pensions can respond in a timely and effective manner to payment system disruptions, helping to safeguard customer entitlements and maintain public trust in its services. In summary the end-to-end solution consists of two distinct but interdependent components, structured into separate Lots: This specific note outlines the planned procurement activity for: Lot 1 - Short Term Payment Contingency Service: A service that reformats Bacs payment files into Faster Payments for onward submission into the Faster Payments infrastructure, ensuring continuity in payment delivery during system disruptions. The DWP processes approximately 2.5 million payments per day, amounting to over PS5.8 billion per week. Given the scale and importance of these transactions, the contingency service plays a vital role in ensuring resilience and reliability across payment operations. The current contracts are due to expire on 30 June 2026, both with a 12-month extension option available up to 30 June 2027. Suppliers may submit a bid for either Lot 1 or Lot 2 individually, or for both Lots. The Buyer does not require the supplier awarded Lot 1 to manage or coordinate the delivery of services under Lot 2. Each Lot will be contracted and managed independently. Please Note: The Buyer reserves the right to end the tendering process at any time and not to award a contract. Any costs incurred in the preparation and submitting of a bid and any subsequent activity connected to this tender exercise will be met by the Supplier, not the Buyer.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0615c5
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/009632-2026
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK1 - Pipeline Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
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
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
3 Feb 20262 weeks ago
Submission Deadline
Not specified
Future Notice Date
8 Jun 20264 months to go
Award Date
Not specified
Contract Period
30 Jun 2027 - 30 Jun 2032 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planned
Lots Status
Planned
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT FOR WORK & PENSIONS
Contact Name
Ewelina Wesolowska
Contact Email
ewelina.wesolowska@dwp.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
SW1H 9NA
Post Town
South West London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

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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