Provision of a Direct Debit Solution

Following the VEAT Notice issued on 12 April 2024, outlining DVLA's intention to Award. The standstill period has now been completed.

DVLA has awarded a contract to Target Group Limited for the provision of a Direct Debit Service commencing on 1st June 2024.

This is to ensure continuous operation of the existing Direct Debit service; allowing enough time for DVLA to undertake a new tender process for a future Direct Debit Service. The future Direct Debit Service opportunity will be advertised in line with the relevant contract regulations.

This is the final contract award notice.

The Driver and Vehicle Licensing Agency (DVLA) (The Authority) is an Executive Agency of DfT, based in Swansea. The Agency’s primary aims are to facilitate road safety and general law enforcement by maintaining accurate registers of drivers and vehicle keepers and to collect Vehicle Excise Duty (VED).

A DD payment option was introduced from 1st October 2014 which enables End Users to currently pay the full annual VED amount in one annual instalment, pay for a 6-month licensing period in one instalment or opt to spread the costs evenly over the term of a 12-month licensing period.

• Currently, over 1.3 million mandates are created per month, this is split between circa new (40%) and renewed (60%) mandates.
• On average, Direct Debit payments total approximately £225m a month.
• The total value of the contract for the financial years 2018-2023 is in the region of £25 million