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The Procurement Policy Note (PPN) 015 outlines new guidelines for evaluating a supplier’s approach to payment in government procurement of major contracts valued over £5 million annually.
Effective February 2025 under the Procurement Act 2023, it emphasizes prompt and fair payment practices to support small businesses and enhance cash flow, contributing to the government’s goal of unlocking £20 billion in unpaid invoices.
Suppliers must demonstrate compliance with benchmarks, including paying 95% of invoices within 60 days or submitting action plans for improvement. The PPN also provides exceptions for exceptional circumstances and promotes streamlined cash flow for fostering small business growth.
