Public sector payment requirements update
From 1 April 2024, companies bidding for Government contracts over £5 million per annum will have to demonstrate that they pay invoices within an average of 55 days and at least 95% within 60 days (90% if an action plan is provided) as set out in PPN 10/23.
The guidance to the PPN confirms that companies must meet both these metrics in at least one of their two previous six month reporting periods under the Reporting on Payment Practices and Performance Regulations, although any companies that have failed to do so may submit data that has not yet been reported for the previous three or more months.
The Cabinet Office has confirmed that under the Procurement Act the way that the public sector reports payment performance will be aligned with the private sector to improve transparency.
