To ask the Secretary of State for Health if he will conduct research into the effects of late payments from his Department on charities, with particular reference to their ability to fulfil the contract at the specified levels.

We do not consider that research into the effects of late payments is necessary.

The Department acknowledges that late payments may have an impact on charities and voluntary organisations. We support and have taken on board the good practice guidance on procurement of services from the voluntary and community sector published by the Home Office and the Compact Code of Practice on Funding, both of which emphasise the importance of prompt payment within payment procedures.

The Section 64 General Scheme of Grants represents the greatest single source of grant funding from the Department to the voluntary sector. The Department may also contract with voluntary organisations for a specific service outside the Section 64 scheme.

The Majority of Section 64 grants are paid in quarterly instalments starting when the organisation has formally accepted the grant conditions and the project has started. Payments in subsequent years are made following receipt of financial and monitoring information as specified in the conditions. Payment schedules are notified to the organisations.

The Department's general payment policy is that, where there is no contractual provision or other understanding or accepted practice governing the time of payment, the Department should pay within 30 days of receipt of goods and services, or of the presentation of a valid invoice or similar demand for payment, whichever is the later. Our records show that over 90 per cent. of invoices in the current financial year have been paid in accordance with this policy.