Small Business Commissioner launches new Fair Payment Code

4h December 2024

The Secretary of State for Business and Trade announced in September a new Fair Payment Code as part of the UK Government’s approach to tackle late payments.

As of 3rd December, applications to the new code are now open.

What is new about the Fair Payment Code? 

The new Code will replace the previous Prompt Payment Code with a tiered system of Awards which rewards businesses that pay their suppliers quickly and are driving improvements in payment performance. The three Award tiers businesses can apply for are:

• Gold Award – To pay at least 95% of all invoices within 30 days

• Silver Award – To pay at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses (with fewer than 50 employees) within 30 days

• Bronze Award – To pay at least 95% of all invoices within 60 days

Driving improvements in business payment practices

The new Fair Payment Code (FPC) has been launched by the Office of the Small Business Commissioner (OSBC) to encourage businesses across the UK to pay promptly.

The new code introduces Gold, Silver and Bronze tiered Award categories underpinned by fair payment principles of being Clear, Fair and Collaborative with their suppliers.

The tiered system of Awards is aimed at awarding best practice and driving improvements in payment performance.

For more information and to apply visit:  https://www.smallbusinesscommissioner.gov.uk/fpc