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Procurement Policy Note (PPN) 018 updates government procurement requirements to assess supplier payment practices for major contracts above £5 million annually, starting October 2025.
It replaces PPN 015 and reduces the average invoice payment period from 55 to 45 days to encourage better supply chain reliability. Suppliers must demonstrate compliance with thresholds, including paying 95% of invoices within 60 days or presenting an improvement plan for a 90% threshold.
This initiative aligns with the government’s Plan for Small Businesses, targeting £20 billion in unpaid invoices to enhance small business cash flow and growth opportunities.
The PPN includes guidance for exceptions and emphasises fair payment as a cornerstone of government contracting.