D3 Tenders | Alternative Student Finance: Student Bank Account

Notice Information

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Notice Title

Alternative Student Finance: Student Bank Account

Notice Description

The Department for Education (DfE) is establishing an alternative student finance (ASF) product, compatible with Islamic finance principles, to enable all students, regardless of their faith, to access Higher Education (HE). Whilst the current student finance system provides interest-bearing loans for students entering HE study, some students, particularly those who identify as Muslim, do not feel able to access these loans due to their faith. ASF will address this barrier by providing a faith-sensitive equivalent to the current loan product. Students accessing ASF will not suffer any detriment nor experience any advantage through choosing to access student support via this route. The ASF system will be based on a 'Takaful' model, to provide a form of group-based mutual support. Recipients will receive financial support for HE and, in return, will commit to making contributions back to the scheme in the future which will be used to help other students go to university. ASF recipients will make the same total contributions as those who opt for the conventional student loan product. Like the conventional student loan scheme, these contributions will be based on what people earn and will therefore be of the same amount and made at the same time as repayments for conventional student loans. Legislation has been put in place, through the Higher Education and Research Act (HERA) 2017, to enable ASF to be introduced. At present, we are working closely with a group of specialist advisors to develop a robust ASF model. Alongside this, the Government is also reforming the wider student finance system. The introduction of the Lifelong Loan Entitlement (LLE) will significantly change how students access learning and financial support. We intend to introduce ASF as soon as possible after the LLE, so that both reforms work cohesively to expand opportunity and support for all learners. To ensure that ASF funds are managed in accordance with Islamic finance principles, the DfE is exploring the banking arrangements required. This will include establishing a bank account that can hold and move funds in a compliant manner, including that the account must not bear or generate interest. This engagement activity is focused on generating insights from the market, including market interest in fulfilling this service, feasibility of account options, the anticipated availability of compliant accounts meeting DfE's requirements, expected costs for the required account and estimated timeframes to establish and operationalise the account. We are keen to identify whether there are innovative solutions that may help deliver better public services and value for money. We anticipate that there will be a contract for this service. The supplier must be able to: * provide evidence of how it handles and holds money in an Islamic finance compliant manner * facilitate the transfer of funds * be fully regulated with FCA/MPM compliance. We expect that a full specification of requirements will be provided after this exercise, in line with an invitation to tender if/when issued.

Planning Information

We welcome participation in this early market engagement exercise from suppliers who think they may be able to fulfil the criteria for the bank account to engage with this activity. Early Market Engagement Exercise Early market engagement process description We anticipate that there will be a limited number of service providers who can be contracted due to the specific nature of the services required. Early market engagement will involve: • An initial webinar where DfE Officials will present ASF and the anticipated service requirements with a Q&A to follow. • 1-1 meetings with banking service providers who meet the procurement description above. This will involve DfE and the bank discussing, confidentially, the scope of the service provided and any limitations and considerations. o We will provide a list of questions prior to meeting if there is information that may be helpful for us to refine our requirements. o Providers will need to sign a non-disclosure agreement (NDA) prior to these meetings to ensure confidentiality. • DfE will retain comprehensive notes from the early market engagement sessions which may inform subsequent procurement activities. The expected timescale for early market engagement is as follows: Early Market Engagement Webinar 30 April 2026 at 2pm. This event is expected to last 45 minutes. There will be an opportunity to ask questions. To register for this event please email: ceini.bowen@education.gov.uk. for the dial in details. o Once the initial webinar has been held, we will contact providers in attendance to secure 1-1 meeting dates.

Notice Details

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Publication & Lifecycle

Open Contracting ID: ocds-h6vhtk-0681ad
Publication Source: Find A Tender Service
Latest Notice: https://www.find-tender.service.gov.uk/Notice/033617-2026
Current Stage: Planning
All Stages: Planning

Procurement Classification

Notice Type: UK2 - Preliminary Market Engagement 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: 66172000 - Financial transaction processing and clearing-house services

Notice Value(s)

Tender Value: Not specified
Lots Value: Not specified
Awards Value: Not specified
Contracts Value: Not specified

Notice Dates

Publication Date: 14 Apr 20261 weeks ago
Submission Deadline: Not specified
Future Notice Date: 14 Jan 20279 months to go
Award Date: Not specified
Contract Period: 30 Aug 2027 - 31 Aug 2034 Over 5 years
Recurrence: Not specified

Notice Status

Tender Status: Planning
Lots Status: Planning
Awards Status: Not Specified
Contracts Status: Not Specified

Buyer & Supplier

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Contracting Authority (Buyer)

Main Buyer: DEPARTMENT FOR EDUCATION
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: SW1P 3BT
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

https://www.find-tender.service.gov.uk/Notice/033617-2026
14th April 2026 - Preliminary market engagement notice on Find a Tender

Notice URLs

https://www.legislation.gov.uk/ukpga/2023/54/contents

Open Contracting Data Standard (OCDS)

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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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