Funding competition SSPP: Liquid food and beverages in refillable packaging

UK registered businesses can apply for a share of up to £1.5 million. This is to demonstrate a reuse or refill packaging system for liquid food and beverage products, at scale in a retail chain.

This competition is now closed.

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Competition sections

Description

Innovate UK, part of UK Research and Innovation, will invest up to £1.5 million for innovative projects as part of the Smart Sustainable Plastic Packaging (SSPP) Challenge.

The aim of this competition is to support business led projects that demonstrate a reuse or refill packaging system for liquid food and beverage products at scale in a retail chain.

Grants are available for projects that enable liquid products currently sold in Single Use Packaging to be purchased in refillable packaging. Packaging can be either already pre-filled or refilled in store for liquids including milk, soft drinks, alcoholic beverages and sauces.

Your project must be or involve at least one large retail chain as project lead or grant funded partner. You must include five or more stores as part of an in-store pilot, lasting at least six months.

In applying to this competition, you are entering into a competitive process.

This competition closes at 11am UK time on the deadline stated.

Funding type

Grant

Project size

Your project’s total grant funding request must be between £500,000 and £1.5 million.

Who can apply

Your project

Your project must:

  • have a grant funding request of between £500,000 and £1.5 million
  • last between 6 months and 12 months
  • carry out all of its project work in the UK
  • intend to exploit the results from or in the UK
  • start by 1 April 2024
  • end by 31 March 2025

Projects must always start on the first of the month and this must be stated within your application. Your project start date will be reflected in your grant offer letter if you are successful.

You must only include eligible project costs in your application.

Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian and Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian and Belarusian source.

Lead organisation

To lead a project or work alone your organisation must:

  • be a UK registered business of any size
  • be or involve at least one grant claiming large retail chain

More information on the different types of organisation can be found in our Funding rules.

Academic institutions cannot lead or work alone.


Project team

To collaborate with the lead, your organisation must be one of the following UK registered:

  • business of any size
  • academic institution
  • charity
  • not for profit
  • public sector organisation
  • research and technology organisation (RTO)

Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Once partners have accepted the invitation, they will be asked to login or to create an account in the Innovation Funding Service. They are responsible for entering their own project costs in the application.

Non-funded partners

Your project can include partners that do not receive any of this competition’s funding, for example non-UK businesses. Their costs will count towards the total project costs.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you could not use suppliers from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.


Number of applications

A business can only lead on one application but can be included as a collaborator in a further 2 applications.

If an organisation is not leading any application, it can collaborate in any number of applications.

Previous applications

You can use a previously submitted application to apply for this competition.

We will not award you funding if you have:

Subsidy control (and State aid where applicable)

This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk)

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.


Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.

Funding

Up to £1.5 million has been allocated to fund innovation projects in this competition. Funding will be in the form of a grant.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

For experimental development projects which are nearer to market, you could get funding for your eligible project costs of:

  • up to 45% if you are a micro or small organisation
  • up to 35% if you are a medium sized organisation
  • up to 25% if you are a large organisation

For more information on company sizes, please refer to the company accounts guidance.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Research participation

The research organisations undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Of that 30% you could get funding for your eligible project costs of up to:

  • 80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic
  • 100% of your project costs if you are an RTO, charity, not for profit organisation, public sector organisation or research organisation

Capital equipment costs

Your application can include the purchase of capital equipment as an eligible project cost for large-scale commercial demonstration projects.

The inclusion of capital costs is optional, not a requirement. Applications that include capital costs will be assessed in the same way as those that do not.

Your project must be able to demonstrate that your innovative concept will lead to improved packaging recycling or re-use, compared to existing re-use and recycling concepts of the same capacity. This includes types which may otherwise be constructed without the grant, should an existing competitive concept exist.

If you have questions about the eligibility of your capital costs, contact Innovate UK Customer Support Service at least 10 days before the competition close.

You will be asked to include a breakdown of any capital costs for your project, as part of your application. We may also contact you for further information related to your capital costs after your application has been submitted.

Any grant funded capital equipment disposed of during the project term, must be reported to Innovate UK. Any revenue generated by the disposal will be offset against the project costs.

For capital equipment costs, your grant funding request must not exceed:

• 45% if you are a micro or small organisation

• 35% if you are a medium-sized organisation

• 25% if you are a large organisation

You can choose to include capital usage as an eligible project cost for capital equipment that you already own or new equipment where you do not wish to claim capital purchase.

Your proposal

The aim of this competition is to support business led projects that demonstrate a reuse or refill packaging system for liquid food and beverage products at scale in a retail chain.

Your project must demonstrate at scale a system enabling high volume or fast moving liquid products to be purchased in refillable packaging. Packaging can be either already pre-filled or refilled in-store.

Your proposal must:

  • include an in-store pilot with a minimum of 5 stores, we are particularly interested in larger scale trials
  • include an in-store pilot period of at least 6 months
  • focus on liquid food and beverage products including dairy and non-dairy milks, water, fruit and vegetable juices, alcohol, soft drinks, oils, sauces and condiments
  • involve plastic packaging, for example transitioning from single use of any material, to refillable plastic packaging, or involve single use plastic to refillable packaging of any material
  • focus on products typically sold in sealed single use packaging
  • quantify the estimated environmental impact to support decisions such as packaging material choice
  • demonstrate commitment to continuing any successful pilot trials beyond the life of the funded project

You must produce a publicly available report at the completion of your funded project. This must provide details of your project outcomes including:

  • customer insights by demographic
  • reuse or return rates
  • unit sales compared to single use packaging

The report should not include commercially sensitive information.

Portfolio approach
We want to fund a variety of projects across different themes, technologies, and technological maturities. We call this a portfolio approach.

This competition is funded by the Smart Sustainable Plastic Packaging Fund (SSPP), the Challenge Director reserves the right to make the final decision on whether a project will receive funding.

Specific themes

Your project can focus on one or more of the following:

  • product categories
  • project scale
  • project model - refill in-store or prefill and return model

Research categories

We will fund experimental development projects, as defined in the guidance on categories of research.

Projects we will not fund

We are not funding projects that:

  • are seeking to implement reusable food service or cup schemes
  • do not include a large retail chain
  • do not involve plastic packaging on one or both sides of the transition to refillable packaging

We cannot fund projects that are:

  • dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product
18 September 2023
Online briefing event: watch the recording
18 September 2023
Competition opens
25 October 2023 11:00am
Competition closes
27 November 2023
Invite to interview
12 December 2023
Interview panel
13 December 2023
Interview panel
23 February 2024 11:19am
Applicants notified

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

  • that all the information provided in the application is correct
  • your proposal meets the eligibility and scope criteria
  • all sections of the application are marked as complete
  • if collaborative, that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into three sections:

  1. Project details.
  2. Application questions.
  3. Finances.

Accessibility and inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Watch the video on how we are making our application process more accessible and inclusive for everyone.

You must contact us as early as possible in the application process. We recommend contacting us at least 15 working days before the competition closing date to ensure we can provide you with the most suitable support possible.

You can contact us by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

Interviews

If your application passes the first stage of assessment, you may be invited to attend an interview, where you must give a presentation. Your interview will take place either online or at a designated location. The date and time of your interview will be included in your invitation.

Before the interview and by the deadline stated in the invitation email, you:

  • must send a list of who will attend the interview
  • must send your interview presentation slides
  • can send a written response to the assessors’ feedback

List of attendees

Agree the list with your consortium. Up to 9 people from your project can attend, ideally one person from each organisation. They must all be available on all published interview dates. We are unable to reschedule slots once allocated.

Presentation slides

Your interview presentation must:

  • use Microsoft PowerPoint
  • be no longer than 30 minutes
  • have no more than 20 slides
  • not include any video or embedded web links

You cannot change the presentation after you submit it or bring any additional materials to the interview.

Written response to assessor feedback

This is optional and is an opportunity to answer the assessors’ concerns. It can:

  • be up to 2 A4 pages in a single PDF or Word document
  • include charts or diagrams

Interview

After your presentation, the panel will spend up to 40 minutes asking questions. You will be expected to answer based on the information you provided in your application form, presentation and the response to feedback.

You may be called back in for a further 15 minute question and answer session, if needed.

Panel members

The Challenge Director and Deputy Challenge Director for SSPP will form part of the interview panel.

After your interview

The panellists will individually score your application and these will be averaged for your overall interview score. This score will supersede the one you received from initial assessment unless stated otherwise in the competition brief. We will notify you whether you have been successful or not by email and you will receive feedback on your interview within a week of notification.

1. Project details

This section provides background for your application and is not scored.

Application team

Decide which organisations will work with you on your project and invite people from those organisations to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score all your answers apart from questions 1 and 2. You will receive feedback for each scored question. Find out more about how our assessors assess and how we select applications for funding.

You must answer all questions. Do not include any website addresses (URLs) in your answers.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any partners or subcontractors working on your project.

We are collecting this information to understand the geographical location of all applicants.

Your answer to each question can be up to 400 words long.

Question 2. Permits and licences (not scored)

You must provide evidence that you have given due consideration to the permits and licences your project will need to complete its work. For example a list of the required documents along with a plan and timeline.

Your answer to each question can be up to 400 words long.

Question 3. Need or challenge

What is the business need, technological challenge, or market opportunity behind your innovation?

Explain:

  • the main motivation for the project
  • the business need, technological challenge or market opportunity
  • whether you have identified any similar innovation and its current limitations, including those close to market or in development
  • any work you have already done to respond to this need, for example, if the project focuses on developing an existing capability or building a new one
  • the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations and using our Horizons tool if appropriate

Your answer to each question can be up to 400 words long.

Question 4. Environmental Impacts

Explain how your project will change the environmental impact, positively or negatively, on the plastic packaging system.

Describe the carbon impact, in terms of carbon dioxide emissions or equivalents, of your project:

  • against existing solutions, considering both direct and indirect impact across the entire system, including logistics
  • within the UK and the rest of the world

Explain:

  • any other environmental impacts your project will have
  • any trade-offs in terms of environmental benefits and impacts

Your answer to each question can be up to 600 words long.

You can submit a lifecycle assessment (LCA) or carbon footprint model, as an appendix to support your answer. You must evidence how you have reached your conclusions for your potential LCA and carbon footprint outputs, including any supporting data.

It must be uploaded as a single PDF appendix, no larger than 10MB and up to 4 A4 pages long and no larger than 10MB. The font must be legible at 100% zoom.

Question 5. Approach and innovation

What approach will you take and where will the focus of the innovation be?

Explain:

  • how you will respond to the need, challenge or opportunity identified
  • how you will improve on any similar innovation that you have identified
  • whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas, or a totally disruptive approach
  • the freedom you have to operate
  • how this project fits with your current product, service lines or offerings
  • how it will make you more competitive
  • the nature of the outputs you expect from the project, for example reports, demonstrator, know-how, new process, product or service design, and how these will help you to target the need, challenge or opportunity identified
  • the strength of the commitment and capability to deliver, how will internal sign-off processes be managed to deliver the pilot on time

Explain the size of the pilot, including:

  • the number of stores, with milestones and a timeline to the full number of stores in the pilot where all stores do not launch in parallel
  • what products or stock keeping unit (SKUs) will be included
  • current sales volumes of those products or SKUs
  • the share of the target market that will move to refillable packaging from single use packaging

It is essential that the organisational commitments and funding required to progress the project are in place, or will be, by the project start date. You must confirm the level of commitment that is currently in place and the actions taken to secure any additional commitment or funding needed.

Your answer to each question can be up to 400 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 6. Team and resources

Who is in the project team and what are their roles?

Explain:

  • the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
  • the resources, equipment and facilities needed for the project and how you will access them
  • the details of any vital external parties, including subcontractors, who you will need to work with to successfully carry out the project
  • if your project is collaborative, the current relationships between project partners and how these will change as a result of the project
  • any roles you will need to recruit for

Your answer to each question can be up to 400 words long.

You can submit one appendix, with a short summary of the main people working on the project to support your answer. It must be a PDF, up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 7. Market awareness

What does the market or markets you are targeting look like?

Describe:

  • the target markets for the project outcomes and any other potential markets, domestic, international or both
  • the size of the target markets for the project outcomes, backed up by references where available
  • the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
  • the target markets’ main supply or value chains and business models, and any barriers to entry that exist
  • the current UK position in targeting these markets
  • the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

  • what the market’s size might be
  • how your project will try to explore the market’s potential

Your answer to each question can be up to 400 words long.

Question 8. Outcomes and route to market

How are you going to grow your business and increase long term productivity as a result of the project?

Explain:

  • your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
  • your target customers or end users, and the value to them, for example, why they would use or buy your product
  • your route to market
  • how you are going to profit from the innovation, including increased revenues or cost reduction
  • how the innovation will affect your productivity and growth, in both the short and the long term
  • how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
  • your strategy for targeting the other markets you have identified during or after the project

If there is any research organisation activity in the project, describe:

  • your plans to spread the project’s research outputs over a reasonable timescale
  • how you expect to use the results generated from the project in further research activities

Your answer to each question can be up to 400 words long.

If you have cash flow projection data and an accompanying summary business plan you can upload these as a single appendix. It must be a PDF, up to 10 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 9. Wider impacts

What impact might this project have outside the project team?

Describe and, where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

  • external parties
  • customers
  • others in the supply chain
  • broader industry
  • the UK economy

Describe and, where possible, measure:

  • any expected impact on government priorities
  • any expected regional impacts of the project

Describe any expected social impacts, either positive or negative, on, for example:

  • quality of life
  • social inclusion or exclusion
  • jobs, such as safeguarding, creating, changing or displacing them
  • education
  • public empowerment
  • health and safety
  • regulations
  • diversity

Your answer to each question can be up to 400 words long.

Question 10. Project management

How will you manage your project effectively?

Explain:

  • the main work packages of your project, indicating the lead partner assigned to each and the total cost of each one
  • your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
  • the management reporting lines
  • your project plan in enough detail to identify any links or dependencies between work packages or milestones

Your answer to each question can be up to 400 words long.

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 11. Risks

What are the main risks for this project?

Explain:

  • the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks
  • how you will mitigate these risks
  • any project inputs that are critical to completion, such as resources, expertise, and data sets
  • any output likely to be subject to regulatory requirements, certification, ethical issues and other requirements identified, and how you will manage this

Your answer to each question can be up to 400 words long.

You must submit a risk register as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long, and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 12. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?

Explain:

  • what advantages public funding would offer your project, for example: appeal to investors, more partners, reduced risk or a faster route to market (this list is not exhaustive)
  • the likely impact of the project outcomes on the organisations involved
  • what other routes of investment or means of support you have already approached and why they were not suitable
  • how any existing or potential investment or support will be used in conjunction with the grant funding
  • what your project would look like without public funding
  • how this project would change the R&D activities of all the organisations involved

Your answer to each question can be up to 400 words long.

Question 13. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of your project goals, explain:

  • your total project costs
  • the grant you are requesting
  • how each partner will finance their contributions to your project
  • how this project represents value for money for you and the taxpayer
  • how it compares to what you would spend your money on otherwise
  • the balance of costs and grant across the project partners
  • any subcontractor costs and why they are critical to your project

Your answer to each question can be up to 400 words long.

Products purchased for the project that are sold as part of the trial are not eligible costs, unless the project activities have caused them to be wasted. The profit from any income from sales during the lifetime of the project, must be declared and offset against your total project costs.

If your project costs include capital equipment costs you must complete the attached excel spreadsheet, as well as adding the cost directly into IFS in the ‘Finances’ section. The spreadsheet provides us with the detail of your proposed capital costs. Download the excel spreadsheet finance template provided and complete it. Once completed upload in Excel format. The font must be legible at 100% zoom.

You must include the total of your capital costs from the spreadsheet under "Other costs" in your ‘Finances’ section on IFS. They must be included on one line and labelled "Capital purchases".

The lead and partner organisations may be asked for additional financial information. This could be about the project or specific to a consortium member. The requirement for additional financial information may vary across applications. It will be dependent upon the nature of the proposal and the consortium’s specific argument for support.

3. Finances

Each organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.

For full details on what costs you can claim see our project costs guidance. You can also view our Application Finances video.

Data sharing

This competition is operated by Innovate UK.

Innovate UK is directly accountable to you for its holding and processing of your information, including any personal data and confidential information. Data is held in accordance with our own policies. Accordingly, Innovate UK will be data controllers for personal data submitted during the application. Innovate UK’s Privacy Policy is accessible here.

Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Find a project partner

If you want help to find a project partner, contact Innovate UK KTN.

Support for SMEs from Innovate UK EDGE

If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.

These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.

We encourage you to engage with Innovate UK EDGE, delivered by a knowledgeable and objective specialist near you.

Assessment

Your application will be reviewed by up to 5 independent assessors based on the content of your application and their skills or expertise relevant to your project. All of the scores awarded will count towards the total score used to make the funding decision unless you are notified otherwise.

You can find out more about our assessment process in the General Guidance.

Your submitted application will be assessed against these criteria.

Next steps

If you are successful with this application, you will be asked to set up your project.

You must follow the unique link embedded in your email notification. This takes you to your IFS Set Up portal, the tool that Innovate UK uses to gather necessary information before we can allow your project to begin.

You will need to provide:

  • the name and contact details of your project manager and project finance lead
  • a redacted copy of your bank details
  • a collaboration agreement
  • an exploitation plan

In order for us to process your claims, you must make sure you have a valid UK bank account. It is possible that it can take several weeks for a new account to be created. We would recommend starting this process as early as possible to avoid any delays to you project start date.

The bank details you give to us must relate to a UK high street bank that is regulated by the Prudential Regulation Authority (PRA). The account must have a BACS clearing facility and be in the same company name as your application.

If you have any doubts that your bank account will not meet Innovate UK's funding criteria, you can use the sort code checker. If you input the sort code and find a tick next to the ‘BACS Direct Credit payments can be sent to this sort code’, this will give you an indication that the bank account you hold is acceptable.

Finance checks

We will carry out checks to make sure you are an established company with access to the funds necessary to complete the project.

You must check your IFS portal regularly and respond to any requests we have sent for additional information to avoid any delays.

Failure to complete project setup may result in your grant offer being withdrawn.

Your Grant offer letter (GOL)

Once you have successfully completed project setup, we will issue your GOL.

The GOL will be made available on your IFS portal. You will need to sign and upload this for us to approve before you can start your project. If your GOL is approved on or before the fifteenth of the month, it will be dated from the first of that month. If your GOL is approved after the fifteenth, it will be dated the first of the next month.

You must not start your project before the date stated on your GOL. Any costs incurred before your agreed start date cannot be claimed as part of your grant.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project has not been selected under the portfolio approach if this is applied for this competition.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

Need help with this service? Contact us