Provision of Debt Collection Services

2026-11-03

HMRC is inviting suppliers to take part in pre-market engagement to help us understand market capability, appetite and delivery options for future third-party debt collection services. HMRC wants to understand what the market can offer across the end-to-end debt recovery lifecycle, including debt collection, debt analytics, affordability assessment, data enrichment, customer engagement, vulnerability support and related debt collection services. HMRC is particularly interested in understanding how suppliers can combine these capabilities to ensure debts are collected fairly and sustainably, including the identification and ethical treatment of vulnerable customers, improved recovery outcomes, customer experience, operational resilience and value for money. The services HMRC may need could include, but aren't limited to: • Managed debt collection services • Debt collection agency services • Debt placement and allocation services • Debt segmentation and treatment strategy services • Customer contact and engagement services • Digital self-service repayment solutions • Affordability assessment services • Open Banking enabled repayment and affordability solutions • Data enrichment and tracing services • Debt analytics and predictive modelling services • Vulnerability identification and support services • Overseas debt recovery services • Business debt recovery services • Fraud, error and debt analytics services • Management information, reporting and performance analytics • Continuous improvement and debt recovery optimisation services These products/services are expected to be key enablers to deliver the following capabilities: • Recovery of Government debt in a fair, proportionate and compliant manner • Management of multiple debt collection agencies and recovery channels • Identification of the most appropriate treatment strategy for individual debtors • Improved ability to contact customers through data enrichment and tracing • Affordability and vulnerability assessment to support sustainable customer outcomes • Use of data, analytics and automation to improve recovery performance • Segmentation of debt portfolios based on risk, propensity to pay and customer circumstances • Provision of digital repayment channels and self-service options • Management of domestic and international debt recovery activity • Delivery of actionable management information and performance reporting • Support for debt prevention, early intervention and improved repayment outcomes • Continuous improvement, innovation and operational resilience • Compliance with relevant regulatory, security and data protection requirements • Flexible scaling of services to respond to changing debt volumes and customer demand HMRC is at an early stage of considering delivery and procurement options. No decision has been made on the future commercial model, procurement route, contract term, lotting structure or number of suppliers. This engagement is focused on social value, however HMRC may run further pre-market engagement on other topics in the future, for example delivery model, commercial/fee model, lotting, AI & technology, transition planning, vulnerability identification and management or supply-chain resilience. Contract Overview: Contract value: The estimated values within this notice are indicative only and based on a maximum possible term currently being considered. The final estimated value will depend on the confirmed contract duration, scope, delivery model and internal approvals. If HMRC elects to place a shorter contract, the estimated value is expected to reduce accordingly. Contract term: Maximum contract term currently being considered: up to 8 years, although the final term may be shorter. Procurement route: To be confirmed. A framework may be used, but other routes may be considered.

United Kingdom (UK)

2026-09-02