The UK government’s proposed Procurement Bill will likely bring about substantial changes to the procurement process in the public sector. One significant area is its potential implications for late payment claims. As such, this bill is being closely watched by suppliers and contractors. This blog post will delve into the possible procurement bill impact on late payment claims against the public sector.

The Current Public Contract Regulations 2015

Public sector payments in the UK are currently regulated by the Public Contract Regulations 2015. This legislation is a set of regulations that implement the European Union’s directives on public procurement. In particular, they govern how public sector bodies award contracts. Moreover, they aim to ensure transparency, competition, and fairness for all suppliers bidding for public contracts. These regulations also serve to streamline and simplify public procurement processes.

Regulation 113 of the agreement mandates that all contracting authorities pay undisputed invoices within 30 days.  This rule is essential in ensuring timely payment to suppliers and promoting a healthy business environment. A failure to comply with this regulation means the supplier can claim compensation.

For an in-depth understanding of these regulations, you can visit our Public Contract Regulations 2015 page.

The Proposed Changes: The Procurement Bill

The proposed Procurement Bill looks to reform public sector procurement in the UK, aiming to simplify processes and increase flexibility. While they are still working on the specific details of the bill, experts expect it to maintain the emphasis on prompt payment. As a result, they forecast that the existing 30-day payment rule in the Public Contract Regulations 2015 will remain in tact.

This is good news for suppliers, as it could introduce further measures to ensure prompt payment from public sector bodies and contracting authorities.

How Will The Procurement Bill Impact Late Payment Claims?

As mentioned above, the Procurement Bill will likely retain suppliers’ fundamental rights to claim late payment compensation from public sector bodies. That means businesses can continue to leverage the provisions of the Late Payment of Commercial Debts (Interest) Act 1998 to protect themselves against late payments. 

One possible enhancement that the Procurement Bill could introduce is stricter penalties for public bodies consistently failing to meet their payment obligations. This would be a significant step in deterring late payments and further protecting suppliers.

The Importance of Staying Informed

As the Procurement Bill is still under discussion, we don’t know the exact implications for late payment claims yet. As such, suppliers should keep updated with the latest developments to understand how the new legislation might affect their operations and their rights to late payment compensation.

Keep an eye on our Articles section for the most recent updates.


We expect the proposed Procurement Bill to change public sector procurement in the UK significantly. While the specific impact on late payment claims is yet to be confirmed, the bill will likely continue to uphold the rights of suppliers to claim compensation for late payments. As suppliers navigate this changing landscape, staying informed about the latest legislative developments is essential. In the meantime, businesses can continue to make late payment claims and get the compensation they deserve.

If you believe you’re entitled to late payment compensation under the existing laws, check our Eligibility Checker to see if you can make a claim.

A person circling a day in a calendarPublic Sector Legal Requirements for Paying Invoices on Time