- MoD spent £9.7m on ePCs in July 2026 (£3.1m virtual; £6.5m physical)
- Spend included hotels/resorts, bars/nightclubs, gift/novelty shops, and flights
- 2026 ePC total is £84.6m so far; July was the lowest month, March the highest
The UK Ministry of Defence (MoD) spent over £9.7m ($13.1m) on payments using electronic purchasing cards (ePC) in July 2026, covering items such as gift cards and novelty shops, hotels and resorts, and bars and nightclubs.
According to transparency information released by the UK MoD on 10 August on departmental spending over £500 with an ePC, the MoD spent over £3.1m on virtual transactions and more than £6.5m on physical transactions in July.
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Costs items included a £3,000 transaction for bars, taverns, pubs & nightclubs on 27 July, £29,000 on consultants and PR services on 28 July, and nearly £10,000 on hotels and resorts on 1 July.
An example of virtual transactions included £1,224 for stamp and coin dealers on 22 July, £728 on cruise lines on 2 July, and £12,000 on 14 July for gift, card, and novelty shops.
In addition, air travel was a regular expense in July, with Ryanair receiving over £6,000 in physical transactions with an ePC. Virtual transactions for Ryanair were far larger, amounting to more than £29,000 in fees.
Ryanair is a low-cost airline operating to European locations, including Rzeszów, a known hub for military personnel and equipment transiting into neighbouring Ukraine.
Other costs include schooling, recreational services, car rental, and clothing, among others.
At the time of publishing, the UK MoD had not responded to requests from Army Technology for comment.
Defence spending has been thrust into the limelight in recent weeks following the publication of the Defence Investment Plan, which saw a range of in-service capabilities – including surveillance aircraft, drones, helicopters, naval destroyers, and armoured vehicles – cut in order to free up funding for future acquisitions.
MoD ePC spending in 2026 exceeds £80m
Overall ePC spending so far in 2026 runs to more than £84.6m, with July’s £9.7m total the lowest figure of the year to date. The most expensive month for ePC spending was March with £16.3m in costs, while Q1 registered £43.2m in spending, around 25% higher than the £31.6m accrued in Q2.
The MoD states that the physical ePCs are used by the UK Government as a “method of prompt payment”, not as a credit card, for purchasing and paying for low risk/low complexity goods or services in a face-to-face environment under £12,000 in value.
However, some transactions exceeding £12,000 may still proceed, provided that “appropriate due diligence has been undertaken and the necessary commercial and financial approvals are in place”.
Virtual purchasing cards are utilised where this approach is considered a more efficient and appropriate route to market than engaging full contractual procedures. Digital payments are now the default method for purchasing within an e-commerce environment, the MoD states.
