Planning

Sponsor Bank Service

DEPARTMENT FOR WORK & PENSIONS

This public procurement record has 1 release in its history.

Planning

03 Feb 2026 at 16:51

UK1 - Pipeline Notice
Summary of the contracting process

The Department for Work & Pensions (DWP), a central government public authority based in London, is planning a tender for a Sponsor Bank Service under its Payment Contingency Services. This procurement, focused on financial and insurance services, aims to ensure operational functionality in the event of payment system disruptions. The tender is currently in the planning stage with a pipeline notice published on 3rd February 2026, and a future notice expected by 8th June 2026. The contracts are anticipated to start on 1st July 2027 and will last until 30th June 2032, with a potential extension available until 2034. The procurement is structured into two lots, allowing bids for the Short Term Payment Contingency Service and/or the Sponsor Bank Service.

These tenders present significant opportunities for businesses involved in financial and banking services to secure roles in supporting government operations. This is especially relevant for businesses with experience in high-capacity payment processing and infrastructure support. By contributing to the contingency services, firms can expand their public sector portfolio and reinforce their reputation in providing essential services that maintain public trust. Companies specialising in payment solutions or having existing relationships with central banking institutions like the Bank of England might find this tender particularly aligned with their capabilities and strategic growth goals.

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Notice Information

Notice Title

Sponsor Bank Service

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. This specific note outlines the planned procurement activity for: Lot 2 - Sponsor Bank Service: A Sponsor Bank responsible for the settlement of funds with the Bank of England, enabling the operational functionality of the contingency service. 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-0615d4
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/009643-2026
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

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. 

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