More than 400 UK businesses have been officially recognized by the government for paying their suppliers promptly and correctly, as part of the fair payment code, a scheme run by the Small Business Commissioner’s office.
The code, introduced in December 2024, is part of a national drive to combat Britain’s late payment culture, which costs the economy $11 billion each year – the equivalent of 38 businesses every day.
Milestone marks a growing movement among large and medium-sized firms to improve cash flow throughout the supply chain, especially at a time when small businesses continue to face high borrowing costs and fragile marriages.
The Fair Payment Code Awards recognize organizations that demonstrate clear, transparent, and reliable payment methods. The military agreed to follow three central principles: to be clear, fair and cooperative with their suppliers.
To qualify, firms must provide detailed evidence of their payment behavior, verified through a rigorous evaluation process. There are three award categories, based on the internal performance of Invoice:
• Gold Award – For businesses that pay at least 95% of all invoices within 30 days.
• Silver award – for those who pay at least 95% within 60 days, and 95% of invoices for small businesses within 30 days.
• Bronze Award – Firms that pay at least 95% of all invoices within 60 days.
Each award is valid for two years, after which companies must reapply.
Applications for the following awards are open, and businesses are encouraged to apply between September and December to secure the full two-year recognition period.
Emma Jones (picture)The UK’s Small Business Commissioner, said the milestone reflects a growing desire for responsible business behavior and the wider benefits of a good payment culture.
“It’s fantastic to celebrate this milestone of a fair payment code with businesses across the UK,” Jones said.
“Associates are leaders in good and fast payments, getting money that flows through the economy and encouraging the growth of supply chains. But this is the beginning – I want to look for opportunities to pay where the payment is at the right time.”
Jones added that timely payments are very important in a difficult economic environment, where small and medium-sized enterprises (SMEs) often act as the backbone of chains or lack the reduction of delays.
Among the businesses recognized under the code are major financial institutions, including the Natwest group, which holds Gold award status.
Ken Mchugo, the head of Supply Chain at Natwest Group, said that the allegation shows the bank’s responsibility to save good practice for its business customers.
“Natwest Group is a major business foundation in the UK, with over 1.5 million customers – from start-ups and SMEs to multinational companies,” said Mchugo.
“We know first hand from our business banking clients how important fast payment is to cash flow, success and growth. By being the gold standard in the right payment code,”
The problem of late payments has long been a source of frustration for small firms. According to recent research by the Federation of Small Businesses (FSB), one in four small businesses have been paid late by large clients, and 37% find late payments their biggest financial challenge.
The appropriate payment code, combined with fast payment and cash flow review, is part of the government’s comprehensive plan to build “a good, fast payment culture, to ensure that businesses are rewarded for their work without excessive delays.”
As more firms commit to the Code, officials hope to create a benchmark of best practice that promotes accountability in all aspects of construction – from sales and marketing.
“Getting money flowing quickly into the economy is important,” Jones said. “When businesses are paid on time, they can invest, hire and grow – and that helps everyone.”
