The Small Business Commissioner, with the support of the Department of Business and Trade, will be launching a new Fair Payment Code later in 2024. The new Code will reward business for adopting fair payment practices for suppliers of all sizes and small suppliers in particular.
The new Code will include a set of fair payment principles that companies are required to sign up to, as well as three award categories:
- Gold – For companies paying 95% of their suppliers within 30 days.
- Silver – For companies paying 95% of their small business suppliers within 30 days and all other suppliers within 60 days.
- Bronze – For companies paying 95% of suppliers within 60 days.
The new Code will replace the Prompt Payment Code which has been operational since 2008.
The Prompt Payment Code remains open for signatories but will be suspended and eventually closed once the new Fair Payment Code is launched. Companies can still apply to the Prompt Payment Code but should be aware that this will change later in the year. Companies expressing an interest in the Prompt Payment Code, as well as existing signatories, will be contacted with details of how to apply for the Fair Payment Code once it is launched.
For further information please select the following link: New Fair Payment Code (smallbusinesscommissioner.gov.uk)