## Procurement Policy Note - Prompt Payment Policy And Reporting Of Performance Action Note 05/15     27 March 2015 Issue 1. This Ppn Restates The Policy On Prompt Payment For Central Government (Ppn 08/10) And

sets out new reporting requirements on prompt payment announced in the Budget 2015. 
2. Government is committed to creating a supportive environment in which ambitious 
businesses can flourish. Late payment is a key issue for business, especially smaller businesses as it can adversely affect their cash flow and jeopardises their ability to trade. The Government recognises that the public sector should set a strong example by paying promptly. 

## Dissemination And Scope

 3. The contents of this Action Note apply to all Central Government Departments including 
their Executive Agencies and Non Departmental Public Bodies (in-scope organisations). Please circulate this document within your organisation, drawing it to the attention of those with a payment role. 

## Timing 4. The Provisions Of This Action Note Will Take Effect From 1 April 2015. Action

 
5. The Government announced the following reporting requirements in the 
Budget 2015: 
 
 From April 2015, all in-scope organisations will publish the percentage of their invoices 
paid within i) 5 days and ii) 30-days, on a quarterly basis. 
 
 From April 2016, all in-scope organisations will publish all interest liable, under the late 
payment legislation, on a quarterly basis. 
 


 6. 
As with existing reporting requirements, in-scope organisations should report their 
performance on their own pages on GOV.UK using this template. 
 

 Percentage of invoices paid within 5 days. 
Percentage of invoices paid within 30 days.  
Financial year 
2015/2016 
 
Total amount of liability to pay [From April 2016] 
1st quarter 
80% 
20% 

 
Background 7. Central government policy on prompt payment remains unchanged: In Scope 
Organisations pay 80% of all undisputed invoices within five days, with the remaining undisputed invoices being paid within 30 days or interest becomes liable as set out in the 
late payment1 legislation.  
 
8. The Public Contract Regulations 2015 require all public sector organisations to pay 
undisputed invoices in 30 days and ensure this payment term is passed down the supply chain. Further guidance is available here. 9. The Mystery Shopper service will assist in ensuring the contracting authorities comply with 
these new measures and will "name and shame" poor payers through the fortnightly 
publication of Mystery Shopper cases on GOV.UK.  The service will also proactively ensure that 30-day payment terms are being passed down the supply chain by carrying out spot checks on contracting authorities. Contact 
10. Enquiries about this PPN should be addressed to the Service Desk 0345 410 2222 or 
info@ccs.gsi.gov.uk.