Following consistent pressure from ECA over the past two years, draft legislation to amend the Reporting on Payment Practices and Performance Regulations has now been laid before Parliament for approval. As well as extending the Regulations until 6 April 2031 – a key ask from ECA - the draft legislation confirms that large companies will be required to report on the following additional metrics from 1 January 2025:
- The value of invoices paid within 30 days, between 30 and 60 days, and over 60 days
- The value of invoices not paid within agreed terms
- The percentage of invoices not paid due to a dispute.
The new metrics were designed by ECA to reconcile the picture painted by the payment reports -v- the reality of live experience as insolvencies sore.
The Department for Business and Trade has confirmed that further legislation introducing reporting on retentions should be laid later this year.
Payment League Table Performance
The data on large firms’ payment performance can be accessed here. League table on payment performance for construction can be access from Good Business Pays and Build UK.
Last updated 14 February 24