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Sponsor Bank Service

Department for Work and Pensions

This public procurement record has 6 releases in its history.

PlanningUpdate

15 Oct 2026 at 14:56

UK3 - Planned Procurement Notice
PlanningUpdate

07 Aug 2026 at 16:32

UK3 - Planned Procurement Notice
PlanningUpdate

07 Jul 2026 at 15:33

UK3 - Planned Procurement Notice
Planning

05 Jun 2026 at 16:24

UK3 - Planned Procurement Notice
Planning

01 May 2026 at 13:42

UK2 - Preliminary Market Engagement Notice
Planning

03 Feb 2026 at 16:51

UK1 - Pipeline Notice
Summary of the contracting process

The Department for Work and Pensions plans to procure a Sponsor Bank Service to support its payment contingency arrangements for benefit and pension payments. The service will settle funds with the Bank of England when DWP cannot release Bacs payment files on time; it is intended to operate alongside a separate service that converts Bacs files into Faster Payments. Both services are needed for the contingency arrangements to work, but they are separate procurements and this process covers only the Sponsor Bank Service. The service is intended for use in exceptional circumstances to help ensure customers receive payments when due. The delivery location is the United Kingdom. This is a financial service procurement.

This is at the planning stage: DWP has announced its intention to procure, but has not yet invited tenders. It expects to use a one-stage Competitive Flexible Procedure. The next notice is anticipated on 26 October 2026; expressions of interest are expected by 22 November 2026, with enquiries until 9 November and an award decision expected by 11 January 2027. These are indicative expectations, not bid deadlines at this stage. The planned contract is valued at £1,223,740 excluding VAT (£1,468,488 including VAT). It is expected to run from 1 July 2027 to 30 June 2032, with an option to renew for up to 24 months, extending at most to 30 June 2034. The service is a single procurement, separate from the linked payment-file conversion procurement.

This procurement is likely to suit banks and financial-services providers able to settle funds with the Bank of England and support time-critical public-sector payment operations. Suppliers should be prepared to provide a dependable contingency service that can be invoked in exceptional circumstances when DWP’s Bacs payment files are delayed, supporting accurate settlement so benefits and pensions can be paid when due. DWP has said it will use market engagement to understand suppliers’ capabilities, capacity, available provision and potential innovative solutions, and to identify delivery risks and commercial considerations. The planned service is interdependent with a separate Short Term Payment Contingency service, so providers should understand the operational relationship between settlement and the conversion of Bacs files into Faster Payments. Participation in earlier market engagement is not a prerequisite for the future procurement.

How relevant is this notice?

Notice Information

Notice Title

Sponsor Bank Service

Notice Description

The Department for Work and Pensions (DWP) wish to give notice of planned procurement opportunity in relation to two linked but separate future procurements for DWP payment contingency services (together referred to in this notice as the "Payment Contingency Services ("PCS")). The intention of the PCS is to ensure DWP has robust contingencies in place to make benefit and pension entitlement payments to its customers on the dates they are due. The PCS are invoked only in exceptional circumstances where there is a delay in DWP releasing Bacs payment file(s). The DWP intends for the relevant services to be provided under two separate, interdependent contracts (both of which are required to allow for invocation of PCS) as follows: Short Term Payment Contingency ("STPC") : This service reformats Bacs payments files into Faster Payment files for onward submission into the Faster Payment infrastructure Sponsor Bank ("SB") : This service is required for the settlement of funds with the Bank of England. Please note that as these are separate procurements, different procurement processes and/or commercial approach may apply to each procurement. In addition, each procurement may be awarded, delayed, or withdrawn independently of the other. This notice relates specifically to the SB procurement. A separate UK3 Planned Procurement Notice has been issued for the STPC procurement, which can be found on Find a Tender Service. Please note that: - Further information and relevant guidance will be provided in or with the UK4 Tender Notice, published on Find a Tender Service website. - UK 4 Notice and associated procurement documents provided with that notice will outline how and when to express your interest to participate in the procurement process. - All procurement activities will be managed via DWP online portal (Atamis). - Procurement related documentation will be issued via Atamis. Full guidance on registration and system navigation will be provided in or with the UK4 Notice. - It is mandatory for any interested suppliers to register on the new Central Digital Platform (CDP) which is part of the enhanced Find a Tender Service in order to participate in any future procurements. Details of how to register will be included in or with the UK4 Notice. - The DWP will not be liable for any expenditure, work, or effort incurred by a provider in acting based on this notice. - The information provided in this notice is for indicative purposes only. The DWP reserves its rights to amend any of the information included in the notice. - DWP reserves the right to add or remove stages throughout the procurement process or to reduce the tendering period in future (in accordance with the PA 23). The DWP also reserves the right to decide not to proceed with this procurement. - Please note, that involvement in Preliminary Market Engagement (PME) which was taking place 12/05/2026 or the One-to-One supplier events taking place between 01/06/2026 and 05/06/2026 are not a pre-requisite for participating in the procurement process. Please see the following link to the UK2 PME Notices for both STPC and SB - Short Term Payment Contingency Service - Find a Tender and Sponsor Bank Service - Find a Tender . - This procurement will be conducted using the new procurement regime - Procurement Act 2023 . - It is currently anticipated that this procurement will follow a one stage Competitive Flexible Procedure.

Planning Information

Engagement The date for the group event is 12/05/2026 at 10:00 am– 11:00 am. This will be followed up with One-to-One events, which will take place between 01/06/2026 and 05/06/2026. The above dates are indicative and may be subject to change. Engagement process description General Information The main purpose of this preliminary market engagement is to assist the DWP and potential suppliers to prepare for a procurement process in respect of the SB Service. The DWP will gather information, which it will use to assess the market's capacity, strengthen the procurement strategy and finalise conditions of participation. The engagement aims to: - Communicate objectives, scope, and strategic priorities - Gain a greater understanding of current and emerging market provisions and the supplier database - Gain insight into market, including supplier capabilities, capacity and to identify innovative solutions that could support DWP in protecting customer payments and ensuring timely delivery - Gather insights from suppliers to help with strengthening the procurement strategy  - Identify any potential challenges, risks and commercial considerations for ensuring timely delivery of payments to DWP’s customers - Strengthen commercial strategy and finalise the route to market - Finalise conditions of participation - Finalise business requirements and specifications Please note: - This notice is for market engagement and exploratory purposes and is not a call for competition. - Participation in pre-market engagement is voluntary and will not confer any advantage or disadvantage in any future procurement. The DWP will take steps to ensure fair and equal treatment of all suppliers. - The DWP reserves the right not to enter any formal processes or agreements. - Accordingly, the DWP will not be liable for any expenditure, work, or effort incurred by a provider in acting based on this notice. - DWP reserves the right to add or remove stages throughout the procurement process. - It is mandatory for any interested suppliers to register on the new Central Digital Platform which is part of the enhanced Find a Tender Service in order to participate in any future procurements. - The DWP does not guarantee the accuracy or completeness of any information provided during pre-market engagement, and suppliers should not rely on it when forming any commercial or financial decisions. - Suppliers must not seek to influence the procurement design in a way that would result in an unfair competitive advantage. The authority reserves the right to take appropriate steps to address any risk of distortion of competition. - Suppliers that participate in the PME are deemed to acknowledge and accept the DWP’s approach to confidentiality for each stage of pre-market engagement (as summarised below). Stages: 1) Group Event via Microsoft Teams. Group Event will take place on 12/05/2026 at 10:00 am – 11:00 am. Please note that the Group Event is intended to cover both the STPC and SB procurements. Participation in the Group Event does not require suppliers to express interest in both procurements. Please note that the Group Event will be conducted on a non-confidential basis, and suppliers are advised not to disclose confidential, commercially sensitive or proprietary information during the Group Event. Information from the Group Event (including questions raised and responses given) may be summarised and made available to the wider market to ensure transparency and equal access to information. To register your interest for this event please email  Ewelina Wesolowska – Ewelina.wesolowska@dwp.gov.uk and Shannon Wells – Shannon.wells@dwp.gov.uk Deadline to submit your interest is by midday on 08/05/2026. Please ensure email subject states: “PME SB Procurement” No materials will be shared prior to the events. 2) One to One supplier events via Microsoft Teams. These individual calls will take place between 01/06/2026 and 05/06/2026. Instructions for how to register for these events will be provided on the Group Event. Please note that the One-to-One supplier meetings will be provided only in respect of the procurements for which suppliers have registered an interest. Equal time slots will be arranged for all suppliers interested in the SB procurement. Please note that information exchanged during One-to-One meetings is not confidential by default and suppliers are advised to consider carefully whether to disclose any information that may confidential, commercially sensitive or proprietary during One-to-One meetings. Where a supplier wishes to share information it considers to be confidential, commercially sensitive or proprietary, the supplier must clearly identify that information in advance or at the time it is shared and explain why confidentiality is claimed. In such circumstances, the DWP will consider, at its own discretion, whether such information can be treated as confidential. Participating suppliers acknowledge that any agreement to treat information as confidential is subject always to DWP’s obligations under applicable procurement law, including its duties of transparency, equal treatment and the avoidance of distortion of competition. Information from the One-to-One events (including questions raised and responses given) may be summarised and made available to the wider market to ensure transparency and equal access to information.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0615d4
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/097555-2026
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
£1,223,740 £1M-£10M
Lots Value
£1,223,740 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
15 Oct 20261 weeks ago
Submission Deadline
Not specified
Future Notice Date
26 Oct 2026Expired
Award Date
Not specified
Contract Period
1 Jul 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 and 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
Postcode Area
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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