Government Departments: Billing

Cabinet Office written question – answered on 2nd January 2019.

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Photo of James Frith James Frith Labour, Bury North

To ask the Minister for the Cabinet Office, what monitoring processes the Government uses to check that main contractors pay sub-contractors within 30 days.

Photo of Oliver Dowden Oliver Dowden The Parliamentary Secretary, Cabinet Office

The Public Contract Regulations require public sector buyers to pay their suppliers within 30 days and require these payment terms to be passed down the supply chain. Should circumstances of non-compliance arise, we encourage sub-contractors to contact the Public Procurement Review Service in the Cabinet Office who will investigate. The service has helped suppliers reclaim over £5 million in late payments.

A new prompt payment initiative to ensure all Government suppliers and subcontractors benefit from being paid on time, will come into force in Autumn 2019. Companies who fail to demonstrate prompt payment to their suppliers face being prevented from winning government contracts. This move will promote a healthy and diverse marketplace of companies providing public services.

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