# DWP Payment Contingency Service - Lot 2 Sponsor Bank

> Contract award record from UK public-sector procurement sources.

## Key facts

- Public buyer: [Department for Work and Pensions](/buyers/department-for-work-and-pensions/contract-awards)
- Contract winner: HSBC BANK PLC
- Award value: £547,200
- Tender value: £502,200
- Award date: 3 August 2022
- Published: 31 October 2022
- Contract start: 1 July 2022
- Contract end: 30 June 2025
- Stage: awarded
- Procurement category: services
- Notice ID: 4c7c9266-5960-4687-bad7-a83a800d8e80-585294
- OCID: ocds-b5fd17-adebe5ef-ba5d-4665-84e6-1c8648d555a4

## Description

This procurement is for the provision of the DWP Payment Contingency Services and a Sponsor Bank\. This awarded contract relates to Lot 2 - Sponsor Bank\. A Sponsor Bank is required to support the functionality of the Payment Contingency Services\. Without a Sponsor Bank in place, the Payment Contingency Services is unable to operate\. This contingency service is invoked in situations when there is a delay with release of the BACS payment file, which contains benefit and pension payments and the Department's ability to make payment on time is threatened\. The service transforms BACS payments into Faster Payments to ensure customers receive their benefit/pension entitlement on their due date, reducing reputational risk and satisfying the Secretary of State's obligation\. The end to end Payment Contingency service requires two separate components, these are: - LOT 1 - A service to reformat BACS payments into Faster Payments for onward submission into the Faster Payment infrastructure - LOT 2 - A Sponsor Bank for the settlement of funds with the Bank of England\.

## Related contract awards

- [Independent Review of Operational Contract Management \(OCM\)](/contracts/ocds-b5fd17-5bcc951a-1cb2-486c-b803-6feccf2b651d): Department for Work and Pensions
- [Laptop Device Call Off 2026](/contracts/ocds-b5fd17-29e6bc84-f6d7-49d4-b0f9-5b33db9776b1): Department for Work and Pensions
- [Workplace Services - Security Guarding](/contracts/ocds-b5fd17-dbf08388-854d-42f1-8044-b1023c5d750e): Department For Work and Pensions
- [Rushcliffe Borough Council - Bank Accounts and Associated Services](/contracts/ocds-b5fd17-16ef90d5-10d9-428c-8d6a-b11105e0f88c): Welland Procurement Unit
- [Sponsor Bank for Short Term Contingency](/contracts/ocds-b5fd17-9cff2288-b479-44ff-91d4-75955897c66f): Department for Work and Pensions
- [Procurement for the New UK Sovereign Sukuk - Appointment of Structuring Bank\(s\)](/contracts/ocds-b5fd17-8e9fe665-9e3d-4b92-b9b2-3826530f55d1): HM Treasury : HM Treasury

## Source

[View the original notice on Contracts Finder](https://www.contractsfinder.service.gov.uk/Notice/4c7c9266-5960-4687-bad7-a83a800d8e80-585294)