A Bill to make provision to amend the statutory limits for payment of invoices; make provision for a statutory time limit for resolving payment disputes; amend interest for late payments and penalties for persistent late payments and non-compliance; prohibit specified payment practices, on-boarding and pay-to-stay; require payments becoming due under public sector construction projects to be held in project bank accounts; amend the remit, role and powers of the Small Business Commissioner in regard to late payments; provide for a duty on auditors to publish late payment data; and for connected purposes
House of Lords
5 May 2021
May contain errors — check source documents for definitive information.
This bill aims to improve payment practices for small businesses. It would set statutory time limits for paying invoices, create a clear process to resolve disputes, strengthen penalties for late payments, ban certain payment practices, and require project bank accounts for public sector construction payments. It would also expand the Small Business Commissioner’s powers and require auditors to publish late-payment data.
The bill is currently at the 2nd Reading stage in the House of Lords and originated in the Lords in 2020. After this stage, it would typically move to Committee for detailed scrutiny.
Generated 21 February 2026
21 Jan 2020
First reading took place on 21 January. This stage is a formality that signals the start of the Bill's journey through the Lords.
Second reading - the general debate on all aspects of the Bill - is yet to be scheduled.
The 2019-2021 session of Parliament has prorogued and this Bill will make no further progress.
No recorded votes for this bill yet.
