UK Government awards more than 800 businesses on the Fair Payment Code 

  • The Fair Payment Code, operated by the Small Business Commissioner, has awarded more than 800 UK businesses for their payment practices.   
  • The Fair Payment Code is supporting businesses to prepare for the changes introduced by the Commercial Payments Bill, such as a 60-day limit on payment terms.  
  • The Fair Payment Code accepts applications from UK businesses of all sizes who pay fairly and quickly.   

Late payments cost the UK economy almost £11 billion per year, with 38 businesses closing every day as a result. The 800 businesses awarded on the Fair Payment Code are leading the way in tackling this problem: getting money moving quicker through the economy, strengthening supply chains and driving growth.   

There are three tiers of Awards on the Code:  

  • Gold Award – for those firms paying at least 95% of all invoices within 30 days     
  • Silver Award – for those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days     
  • Bronze Award – for those paying at least 95% of all invoices within 60 days     

In addition, every business granted an Award agrees to abide by the Code’s principles of being Clear, Fair and Collaborative with their suppliers.  

The Fair Payment Code Awards are for two years, and every business needs to reapply for their Award at the end of each two-year period. Now (between October – December) is the best time to apply for an Award to ensure you get a full two years, but applications are accepted all year round. See how to apply on the Small Business Commissioner website. 

The UK Government is also legislating to tackle late payments under the Commercial Payments Bill. This introduces several key measures to stamp out late payments, such as a 60-day limit on payment terms, mandatory interest, a payment dispute window and stronger powers for the Office of the Small Business Commissioner. The Fair Payment Code is supporting businesses of all sizes across the UK to prepare for these legislative changes to come into effect.  

Emma Jones, Small Business Commissioner, said:  

“It is fantastic to celebrate this milestone for the Fair Payment Code with businesses across the UK. Code Awardees are leaders in fair and quick payments, getting money moving through the economy, helping reduce the wasted hours spent chasing late payments and encouraging growth in supply chains. As the UK legislates to tackle late payments, I want to see more businesses applying to the Code, preparing for these changes and leading the way to a fairer payment culture where paying on time is simply the right thing to do.”   

Dawn Taylor, HR and Marketing Director at Shelby, the 800th Fair Payment Code Awardee, said:  

“Shelby is delighted to be recognised as the Fair Payment Code’s 800th awardee. Achieving Gold status is something we’re very proud of, as it reflects the way we believe business should be done, with fairness, respect and trust. Prompt payment may seem like a simple thing, but it can make a real difference to the businesses we work with and the relationships we build.” 

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