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The Procurement Policy Note (PPN) on Taking Account of a Supplier’s Approach to Payment in the Procurement of Major Contracts provides updated guidance on evaluating suppliers’ payment practices to ensure prompt and fair payment within public sector supply chains. Issued in December 2024, it applies to central government departments, executive agencies, and non-departmental public bodies for contracts over £5 million per year, aligning with the Procurement Act 2023 and Procurement Regulations 2024, effective 24 February 2025. Suppliers must demonstrate 95% of invoices paid within 60 days (or 90% with an action plan) and an average invoice payment period of 55 days. The policy supports SMEs by tackling late payments, improving cash flow, and unlocking £20 billion in unpaid invoices.
