Sponsor Bank Service

This tender closed on 16 October 2026.

Buyer
Department for Work & Pensions
Value
£1,353,740
Closed
16 October 2026
Where
London
Type
Open tender

In plain English

The Department for Work and Pensions needs a bank to act as a sponsor for emergency benefit payment processing. This is a financial services contract to settle funds with the Bank of England when DWP's normal payment systems fail and payments need to be made urgently to benefit recipients.

What the buyer wants

• Provide sponsor bank settlement services to accept and process Faster Payment files for benefit and pension payments to DWP customers • Ensure funds are settled with the Bank of England in exceptional circumstances when DWP payment systems experience delays • Operate as part of a two-contract contingency system (this contract is Lot 2: the Sponsor Bank service; Lot 1 is a separate Short Term Payment Contingency service)

Requirements

What could rule a small business out: This contract is not available to small businesses. It requires a fully-licensed UK bank with FCA approval, Faster Payments membership, and the operational infrastructure to settle millions of pounds in government benefit payments. Only major financial institutions can bid.

Always check the tender documents.

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