Payment Exception Service - Amended Notice

Tender description

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 further defines in the specification document. 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 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. Conditions of Participation are set out below and will be described in detail in Procurement Specific Questionnaire (PSQ). All bids will be assessed based on legal, financial capacity and technical ability. Core Conditions of Participations: • registration on the Central Digital Platform • meeting all legislative requirements to operate the required service in the UK • being fully registered member of the Financial Conduct Authority • being registered Payment Service Provider (PSP) • evidence intention to have all required insurances in place • being able to provide an independent service without integration with any of the DWP systems 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. Please note the values of this notice have been changed as of 10/10/2025.