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01 Nov 20211 minute read

Government publishes new payment requirements

ECAtoday
Government publishes new payment requirements

The Cabinet Office has published an updated Procurement Policy Note (PPN) confirming that the prompt payment threshold is going to be increased for suppliers bidding for Government contracts above £5 million per annum. 

From 1 April 2022, suppliers will be required to show that they pay 90% of invoices within 60 days and have an action plan in place to achieve the required standard of 95% in future, otherwise they risk being prevented from bidding. 

Currently a company can still pass if they pay 85% of invoices within 60 days and submit an action plan, and the Cabinet Office is continuing to take a phased approach with the threshold being "ratcheted up over time until it reaches 95%".

ECAtoday

ECAtoday