Planning

Short Term Payment Contingency

DEPARTMENT FOR WORK & PENSIONS

This public procurement record has 3 releases in its history.

Planning

01 Apr 2026 at 13:44

UK3 - Planned Procurement Notice
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 actively planning a procurement process for the Short Term Payment Contingency Service, announced on 1st April 2026. This initiative falls under the financial and insurance services category, with a focus on ensuring benefit and pension entitlement payments are processed in exceptional circumstances, particularly when delays in the release of Bacs payment files occur. This procurement, operating within the region of London, aims to contract services using a competitive flexible procedure. The enquiry period concludes on 4th September 2026, with expressions of interest due by 21st September 2026. The contract for the STPC service is set to commence on 1st July 2027 and potentially extend until 30th June 2034, with considerations for renewal allowing up to 24 additional months.

This tender offers substantial business growth opportunities, particularly for service providers in financial and insurance domains capable of delivering payment contingency solutions. The procurement comprises two interdependent components: the Short Term Payment Contingency Service, which reformats Bacs payment files into Faster Payments, and the Sponsor Bank Service, ensuring the settlement of funds with the Bank of England. Suppliers can bid for both or individual lots, with responsibilities independently contracted and managed. This is a promising opportunity for businesses specialised in secure payment processes who can help mitigate risks associated with delays in benefit and pension disbursements while enhancing public trust in the DWP's payment systems.

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Notice Information

Notice Title

Short Term Payment Contingency

Notice Description

This notice relates to the of the Short Term Payment Contingency Service (STPC) which ensure that benefit and pension entitlement payments are credited on the customer's due date. The STPC service is invoked in exceptional circumstances where there is a delay in DWP releasing the Bacs payment file(s). The existing services are provided under two separate, interdependent contracts; Short Term Payment Contingency (STPC) and Sponsor Bank (SB), which are both required to allow invocation. * STPC: reformats Bacs payments file(s) into Faster Payments for onward submission into the Faster Payment infrastructure * SB: is required for the settlement of funds with the Bank of England. This notice relates specifically to the STPC element of the Short Term Payment Contingency Service. The STPC service transforms Bacs payments into Faster Payments to ensure customers receive their benefit/pension entitlement on their due date in the events of any delays from DWP on Bacs file(s) release.

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/030424-2026
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK3 - Planned Procurement Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
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
£2,684,000 £1M-£10M
Lots Value
£2,684,000 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
1 Apr 20263 weeks ago
Submission Deadline
4 Sep 20265 months to go
Future Notice Date
8 Jun 20262 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
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

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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