An overview

The Public Contract Regulations 2015 (PCR 2015) is a set of regulations that governed the procurement of goods and services by public sector bodies in England, Wales, and Northern Ireland. Its central purpose was to ensure transparent, competitive, and accountable public spending, but for suppliers the most significant practical provision was the requirement for public sector bodies to pay within 30 days of receiving a valid invoice.

The PCR 2015 replaced the previous 2006 regulations and applied to contracts above the relevant financial thresholds. It was retained in UK domestic law following the UK's departure from the European Union, with references to EU institutions updated accordingly.

Key features of the PCR 2015

30-day payment obligation (regulation 113)

Under regulation 113 of the PCR 2015, public sector contracting authorities were required to pay suppliers within 30 days of receiving a valid invoice. This obligation also had to be flowed down through the supply chain, so subcontractors were also entitled to 30-day payment terms.

Transparency and competition

The PCR 2015 required public sector bodies to publish contract opportunities and treat all suppliers equally, promoting open competition for public contracts.

SME access

The regulations included provisions to make it easier for small and medium-sized enterprises to participate in public procurement, including requirements to consider breaking contracts into lots.

Protection of public funds

The PCR 2015 included measures to prevent fraud, corruption, and misuse of public funds, including requirements for suppliers to provide performance security on certain contracts.

What changed from the 2006 regulations

The PCR 2015 introduced several significant changes from its predecessor. Transparency requirements were strengthened, with more procurement opportunities required to be published. SME access improved, with new provisions making it easier for smaller suppliers to compete for public contracts. The 30-day payment obligation was formalised and extended down through supply chains. That was a significant change for subcontractors, who previously had limited recourse when prime contractors delayed passing on payment.

Regulation 113(7): payment compliance data

Regulation 113(7) required contracting authorities to publish annual reports on their payment performance, including the proportion of invoices paid within 30 days. This publication obligation is directly relevant to how late payment claims get evidenced: the published data creates a verifiable record of payment timing that can support or corroborate a claim.

Two categories of contract fall outside regulation 113 and its payment obligations. NHS healthcare contracts procured under the NHS (Procurement, Patient Choice and Competition) Regulations 2013 are excluded, as are contracts awarded by maintained schools and Academies. Suppliers in these categories should take separate advice on the applicable payment framework.

The move to the Procurement Act 2023

2015

PCR 2015 comes into force

Replaces the 2006 regulations. Introduces the 30-day payment obligation for public sector contracting authorities and their supply chains.

2020

Retained in UK law post-Brexit

Following the UK's departure from the European Union, the PCR 2015 was retained in domestic law by the Public Procurement (Amendment etc.) (EU Exit) Regulations 2020 (SI 2020/1319), with EU-specific references updated. Its core provisions, including the 30-day payment rule, remained unchanged.

February 2025

Procurement Act 2023 replaces PCR 2015

For contracts awarded from 24 February 2025, the Procurement Act 2023 is the governing legislation. The 30-day payment obligation is retained. The PCR 2015 continues to apply to contracts and invoices from before this date.

What this means for your claim

You have a statutory right to interest and compensation. Late Payment Action buys those rights outright.

The Public Contract Regulations 2015 required public sector bodies to pay you within 30 days. Where they didn't, the Late Payment of Commercial Debts (Interest) Act 1998 entitles you to statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £40–£100 per invoice. Late Payment Action purchases those entitlements outright, paying a fixed sum on completion and taking on full responsibility for pursuing the claims. If your invoices pre-date February 2025, the PCR 2015 is the legislation that underpins the payment obligation that was broken.

Am I eligible to claim? What's my claim worth?

Frequently asked questions

The PCR 2015 set out rules governing public procurement by contracting authorities in England, Wales, and Northern Ireland. For suppliers, the most relevant provision was the requirement for public sector bodies to pay within 30 days of receiving a valid invoice, and to flow that obligation through their supply chains.
The PCR 2015 applied to public sector contracting authorities in England, Wales, and Northern Ireland, including central government departments, local authorities, NHS bodies, and other public bodies. Scotland operates under its own separate procurement legislation. See our Scottish legislation guide for the specific rules that apply there.
Yes. The PCR 2015 was superseded by the Procurement Act 2023 for contracts awarded from 24 February 2025. However, the PCR 2015 remains the governing legislation for contracts and invoices from before that date, so claims arising from those invoices are still assessed under the PCR 2015 framework.
Public sector contracting authorities were required to pay suppliers within 30 days of receiving a valid invoice. They were also required to include 30-day payment terms in contracts with their own supply chains, meaning subcontractors doing work on public sector projects were also entitled to 30-day payment.
The PCR 2015 established the payment obligation: public sector bodies had to pay within 30 days. The Late Payment of Commercial Debts (Interest) Act 1998 sets out the remedy when that obligation was not met: statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £40–£100 per invoice. Together, they define the rule and the entitlement when it is broken.
Yes. The PCR 2015 provided suppliers with rights to challenge procurement decisions they believed were not conducted in accordance with the regulations. Separately, suppliers also retained their right to claim statutory interest and compensation under the Late Payment Act where invoices were paid late. That entitlement exists independently of any procurement challenge.