The Government has published PPN 018 which enhances the requirements for prompt payment on public sector contracts. From 1 October 2025, businesses bidding for Government work above £5 million per annum must demonstrate that they pay their suppliers within an average of 45 days, down from the current requirement of 55 days.
New reporting requirements on value of invoices paid and disputed invoices have now come into effect under the Reporting on Payment Practices and Performance Regulations. To ensure consistency with the existing requirement for number of invoices paid, Build UK understands that the data on value of invoices paid will be displayed as percentages, rather than ‘sums’, in the Government portal. For companies with a financial year starting on 1 January, their first reports containing the new metrics will need to be submitted by 30 July 2025 and Build UK’s payment performance table will be updated accordingly.