Tender

Ask AI about this notice

Summarise, research or assess it with AI

View Markdown

Share this notice

Send this contract to a colleague

Direct Payment Payroll and Banking Service

Somerset County Council

This public procurement record has 3 releases in its history.

TenderUpdate

22 Sep 2026 at 15:26

UK4 - Tender Notice
Tender

21 Sep 2026 at 11:39

UK4 - Tender Notice
Planning

18 Aug 2026 at 17:33

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Somerset Council is procuring a Direct Payment Payroll and Banking Service for people who receive Direct Payments or personalised budgets to arrange and pay for social care. The service covers payroll processing for people employing Personal Assistants or other directly employed support staff, including payslips, HMRC submissions, tax and National Insurance administration, pension auto-enrolment, statutory payments and deductions. It also covers banking or managed accounts for receiving Council payments, making agreed payments, maintaining financial records and retaining invoices and receipts. The service is intended to support adults, children and young people, carers, and Education, Health and Care Plan recipients. Delivery is for people in Somerset and may be provided by one organisation or separate payroll and banking providers.

The procurement has reached tender: Somerset Council invited offers through an open procedure. The contract covers one lot, with bids submitted electronically through the specified supplier portal; submissions may be made in English. Enquiries must be submitted by 12:00 on 13 October 2026, and tenders by 12:00 on 20 October 2026. The contract is planned to run from 1 April 2027 to 31 March 2030, with two possible 12-month extensions, giving a maximum end date of 31 March 2032. Its estimated value is £2.5 million excluding VAT, or £3 million including VAT. The award decision is due by 9 December 2026. Evaluation is based on price at 60%, quality at 30% and social value at 10%.

This opportunity suits payroll bureaux, banks, managed-account providers, social-care support organisations and partnerships combining these capabilities. Payroll providers need to process accurately and on time, manage PAYE, National Insurance, pensions, statutory payments and deductions, and help individual employers understand their responsibilities. Banking providers need secure holding or managed accounts, controlled payments, reliable record-keeping, invoice and receipt evidence, monitoring and reporting. The service requires clear communication with the Council, Direct Payment recipients and authorised representatives, alongside safeguards for public money, financial controls, compliance and early escalation of potential non-compliance. Providers should be able to support adults, children, young people and carers, and demonstrate a reliable service model with effective mobilisation and user support. The lot is identified as suitable for SMEs and voluntary, community or social enterprises.

How relevant is this notice?

Notice Information

Notice Title

Direct Payment Payroll and Banking Service

Notice Description

Direct Payments are funding provided to people by local authorities to support them with arranging and paying for their social care needs. An assessment of the person's social care needs is made to decide if they are eligible and what funding is required. The funding is paid directly to the Individual, their nominated representative, their authorised representative, or a third-party holding account, so that they can organise and manage their own support provision.

Lot Information

Lot 1

Renewal: Two x 12 month potential extension periods are available.

Planning Information

Service overview The Council is looking to commission one or more providers to deliver payroll and banking support for people in Somerset who receive a Direct Payment or personalised budget. The payroll and banking elements may be delivered by a single provider or by separate providers, depending on the outcome of the procurement process. The service will need to support adults, children and young people, carers and Education, Health and Care Plan direct payment recipients where a Direct Payment or personal budget has been agreed and where the Council considers this to be appropriate and safe. Payroll service The payroll service will support people who employ Personal Assistants or other directly employed support staff. This is expected to include accurate and timely payroll processing, payslips, HMRC submissions, tax and National Insurance administration, pension auto-enrolment support, statutory payments, deductions and associated employer payroll responsibilities. The provider will also need to offer clear information and support to help individual employers understand and meet their payroll-related responsibilities, including early identification of potential non-compliance and appropriate escalation to the Council where required. Banking and managed account service The banking service will provide a holding account, managed account or third-party account function for people who need support to manage Direct Payment funds. This may include receiving Council payments, making agreed payments on behalf of the person, maintaining accurate financial records, retaining evidence such as invoices and receipts, and supporting transparent monitoring of how public funds are used. The service must be able to operate safely, securely and transparently, with appropriate safeguards, financial controls, reporting arrangements and communication with the Council, the person receiving the Direct Payment, and any authorised or nominated person involved in managing the budget. What we are seeking from providers Through market engagement, we would welcome provider feedback on the proposed service model, including whether the service requirements are clear, proportionate and achievable. We are particularly interested in views about good practice, risks, mobilisation, data and reporting requirements, user experience, safeguarding, financial controls, compliance, and any areas where the service specifications should be strengthened. The aim is to ensure that any future specification supports a high-quality, reliable and legally compliant service that gives people choice and control while also protecting public funds and supporting effective Council oversight. An online market engagement session will take place on: Friday 28th August 11:00 - 12:00 On Microsoft Teams Somerset Council is inviting organisations, that might be interested in delivering these services either individually or in partnership with others to attend. Somerset Council are keen to hear feedback from a range of providers as part of the wider consultation for this service. Organisations that take part will not be advantaged or disadvantaged in any way in any potential future formal procurement. Commercial confidentiality will be respected. This notice does not represent a formal commitment by Somerset Council to undertake a procurement procedure. To attend this event please send a message to stephen.barker@somerset.gov.uk providing the name of your organisation, the name of the person(s) wishing to attend (Max 2 per organisation) and a contact email address for each to enable us to send through the full details of the event and the Microsoft Teams invitation. Please ensure that those attending from your organisation are the most appropriate to feed into the discussions. If you are unable to attend the event, the presentation, notes and associated documentation will be available through the e-tender system www.supplyingthesouthwest.org.uk. Please respond by the deadline of 12:00 on 27th August 2026 if you wish to attend. Thank you. SC reserves the right to cancel or re-arrange this event at its own discretion.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06e6f4
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/089751-2026
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME, VCSE
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

85 - Health and social work services

CPV Codes

66110000 - Banking services

85000000 - Health and social work services

Notice Value(s)

Tender Value
£2,500,000 £1M-£10M
Lots Value
£2,500,000 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
22 Sep 20261 months ago
Submission Deadline
20 Oct 2026Expired
Future Notice Date
11 Sep 2026Expired
Award Date
Not specified
Contract Period
1 Apr 2027 - 31 Mar 2030 3-4 years
Recurrence
2029-09-01

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Somerset County Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
TAUNTON
Postcode
TA1 4DY
Postcode Area
Taunton
Country
England
Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK6 North Somerset, Somerset and Dorset
Small Region (ITL 3)
TLK62 Somerset
Delivery Location
TLK23 Somerset CC
Local Authority
Somerset
Electoral Ward
Bishop's Hull & Taunton West
Westminster Constituency
Taunton and Wellington

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

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.

Loading OCDS record...