We dive into the common question “What is a late payment compensation claim?” and everything you need to know on the subject.

Did you know that, under UK law, your business may be entitled to compensation if you’ve received late payments from the public sector? Interestingly, many companies don’t know their rights when it comes to this legislation.

Late payments can significantly impact your business, but claiming compensation can help relieve some of the stresses. That’s where public sector late payment specialists can help.

At, we leverage our industry expertise to handle the complex claims process on your behalf. That way, you can receive the money you deserve without any hassle. We’ll take the driving seat, so you can focus on what matters: your day-to-day business operations.

Try our free Eligibility Checker today to see if you’re entitled to make a claim.

Want more information about late payment interest claims? This comprehensive guide explores everything your business needs to know about claiming compensation for late payments from the public sector. You’ll discover:

  • What is a late payment compensation claim?
  • Who is eligible to make a claim?
  • The benefits of working with public sector late payment specialists 


What is a Late Payment Compensation Claim?

A late payment compensation claim, also known as a late payment interest or late payment penalty claim, allows businesses to seek compensation for late public sector payments. In the UK, this process is regulated by the Late Payment of Commercial Debts (Interest) Act 1998 and the EU Late Payment Directive.

These legislations recognise the negative impact untimely payments can have on businesses. As such, they provide protection for businesses providing goods and services to the public sector.

Here is the key information your business needs to know about making a late payment compensation claim:


To be eligible for a late payment compensation claim, you must be a supplier and the debtor (client) must be a public authority, contracting authority, or other type of business.

In addition, you must have received a payment outside of the 30-day period connected with this legislation. 

Check your eligibility now →

The Claim Process

The best way to claim compensations for late payments is to work with a specialist. Since the legislation and process itself can be complex, specialist services can help you navigate it successfully.

At, we understand that many businesses simply don’t have the time or the know-how to complete the claims process alone. That’s why we have designed a simple, four-step claims process. You simply fill out the claims package (we’ll send it to you once you begin the process), and we’ll handle the rest.

Fixed Compensation 

The amount of compensation you receive will depend on the size of the debt. These fixed rates can range from  £40 up to several thousands. As such, we offer a free claim calculator to help you estimate the amount of compensation you’re likely to receive.

See how much you’re entitled to →

Handling disputes

Should the public sector organisation dispute your claim, our expert team will leverage years of industry experience to get you the best result. We’ll negotiate on your behalf to ensure you get the money you deserve. 

Find out more about how our claims process works →


Working with public sector late payment specialists means you don’t need to know the ins and outs of UK legislation. That said, you can find clear overviews of the main legislation in our resource hub.

Find out more about the legislation →

Staying informed

Following Brexit, laws surrounding the public procurement process in the UK are changing. Indeed, a new proposed procurement bill is currently in the works. While this bill looks set to improve suppliers’ rights when it comes to late payment compensation, it’s still crucial to stay informed.

That’s why we offer the latest news and developments on our fortnightly blog. You’ll discover information about everything from the public sector’s legal requirements surrounding payments to strategies for preventing late payments. Check the site regularly to keep up-to-date with industry news.


How to Make a Late Payment Compensation Claim?

Our goal is to streamline the process so you can focus on your business. So, we’ve made our claims process as simple as possible.

The first step is to confirm you’re entitled to claim using our Eligibility Checker. If you are entitled to compensation, the next step is to check how much and read through our FAQ page. This page answers all of the most common questions about the process, giving you a clear idea of what’s to come.

Finally, begin the claims process, fill in the claims pack, and we’ll take it from there. Should you have questions or doubts at any point in the process, our experienced team is always on hand.

Speak to the team →


A Final Word on Late Payment Compensation Claims

Late payment compensation claims provide businesses with a legal recourse to address untimely payments. As a result, they ensure your business is fairly compensated for the financial costs and inconvenience of receiving delayed payments.

However, since the process can be complex and vary depending on specific circumstances, it’s important to consult with a professional. is one of the UK’s leading specialists, helping you to seek the compensation you deserve without the hassle. 

Have you received late payments from the public sector? Get in touch today to see if you’re eligible for compensation.

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