Direct Payment Payroll and Banking Service

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.