The prompt payment threshold for suppliers bidding for Government contracts above £5 million per annum will be increased again from 1 April 2022. In accordance with updated Procurement Policy Note (PPN) 08/21, 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%”.