Payment Exception Service - Planned Procurement Notice

Description

This is a new procurement to supersede the previous Payment Exception Service Procurement (identifier (OCID): ocds-h6vhtk-04f71a) which has now been abandoned. Please refer to previous Notices if necessary.
DWP is procuring a Supplier to create and operate a system (the "Payment Exception Service") which will allow benefit and pensions recipients (which DWP refers to as “Customers”) without bank accounts to receive payment of entitlement through an alternate method of payment.
The service is required to fulfil the Secretary of State obligation to pay benefit and pensions payments on time, on the due date, to the correct customer.
Customers will need to be able to access their payments in cash at a wide range of geographical locations. Suppliers will need to ensure comprehensive coverage, which DWP will further define in the Tender Notice. 
The geographical scope of the Payment Exception Service will be for Great Britain and Northern Ireland.
Benefit payments are usually paid weekly, monthly or 4 weekly.
This will be a “Payment Service” as defined by the Payment Services Regulations 2017.
DWP considers that a simple and robust delivery model is the best way to ensure that particularly vulnerable customers can access their payments.
To meet the Governments mission-led focus, DWP’s ambition is to ensure that only customers who genuinely need the service are relying on PES over the coming years. Customers who are able to should be paid by alternative means, to help support them to become financially included.  Consequently, it is intended that DWP will include within the specification business requirements which will have as their aim the lowering of the number of people depending on the PES.
DWP estimate the date for suppliers to submit Tenders in this Competitive Flexible Procurement will be early to mid-September 2025 (Tender Submission Date.) It is not envisaged that there will be a separate “Request to Participate” stage.
Conditions of Participation will be set out in the Tender Notice and bids will be assessed based on legal, financial capacity and technical ability. 
DWP strongly advise that potential suppliers review the Conditions of Participation and the fundamental requirements carefully before compiling a full bid as failure to meet these requirements may result in your bid being excluded.
Tender Documents may be obtained via DWP e-procurement system. Further details will be provided at Tender stage.
DWP will not be conducting any further Market Engagement in respect of this procurement, as DWP has recently conducted Market Engagement in respect of the services to be included in this procurement. This was completed in the previous procurement as detailed above.
Any Conditions of Participation that DWP require will be added to the Tender Notice (currently scheduled for 31 July 2025)