make provision about payment terms in commercial contracts; to make provision about interest on late payment of commercial debts; to ban retention clauses in the construction sector; to expand the powers of the Small Business Commissioner in relation to payment disputes and poor payment practices; to amend the Enterprise Act 2016 in connection with other functions of the Small Business Commissioner; and for connected purposes.
The Commercial Payments Bill [HL] is a Government Bill tabled by a Minister of the Crown.
Is this Bill currently before Parliament?Yes. This Bill was introduced on 19 May 2026 and is currently before Parliament.
Whose idea is this Bill?Government Bills implement the legislative agenda of the Government. This agenda, and the Bills that will implement it, are outlined in the Queen's Speech at the Session's State Opening of Parliament.
What type of Bill is this?Government Bills are technically Presentation Bills, but the Government can use its legislative time to ensure the schedule of debates to scrutinise the Bill.
So is this going to become a law?Though the Bill can be amended from its original form, the Bill will almost certainly be enacted in law before the end of the Session, or will be carried over to the subsequent Session.
How can I find out exactly what this Bill does?The most straightforward information is contained in the initial Explanatory Notes for the Bill.
Would you like to know more?See these Glossary articles for more information: Government Bills, Process of a Bill
Official Bill Page Initial Explanatory Notes Initial Briefing papers Ministerial Extracts from Debates All Bill Debates
Next Event: There is no future stage currently scheduled for this bill
Last Event: Tuesday 9th June 2026 - 2nd reading (Lords)
Bill Progession through Parliament
Clause 18, page 22, line 35, insert—\n“(5A) The adjudicator must reach a decision determining a relevant payment dispute before the end of the period of 60 days beginning with the day on which the dispute is referred to adjudication under the scheme.\n(5B) The adjudicator may compel parties to share relevant information with itself, if the sharing of such information is necessary for the fulfilment of the duty under section (5A).\n(5C) The Commissioner may extend the period in subsection (5A), in relation to a particular dispute, by such further period as the Commissioner considers reasonable, having regard in particular to the complexity of the dispute and the conduct of the parties.\n(5D) Where the Commissioner extends the period under subsection (5C), the Commissioner must notify the parties of the extension and of the reasons for it.”
Clause 18, page 25, line 4, at end insert—\n“2FA Protection of small businesses from detriment\n(1) A larger business must not subject a small business to a detriment on the ground that the small business has—\n(a) referred, or proposes to refer, a relevant payment dispute to adjudication under the SBC adjudication scheme,\n(b) provided information to the Commissioner for the purposes of, or in connection with, an investigation under section 2H, or\n(c) done any other thing for the purposes of, or in connection with, the exercise of any of the Commissioner’s functions under this Part.\n(2) A “detriment” includes (but is not limited to)—\n(a) terminating, or threatening to terminate, a contract;\n(b) refusing to enter into a contract or to continue to supply or purchase goods or services;\n(c) varying the terms on which the larger business deals with the small business to the disadvantage of the small business;\n(d) including the small business on, or referring it to, any list, register or database maintained for the purpose of discouraging others from contracting with it.\n(3) A term of any contract or other agreement is void so far as it purports to authorise, or to provide for the consequences of, conduct prohibited by subsection (1).\n(4) A small business which is subjected to a detriment in contravention of subsection (1) may bring civil proceedings; and the court may grant such remedy or relief (including damages, an injunction or, in Scotland, an order for specific performance or interdict) as it considers appropriate.\n(5) Where a small business shows facts from which the court could conclude, in the absence of any other explanation, that a detriment was imposed on a ground mentioned in subsection (1), the court must find that the contravention occurred unless the larger business shows that the detriment was imposed for another reason.”
Clause 24, page 37, line 41, at end insert—\n“(ca) must, in making provision under paragraph (c), secure that a company’s turnover in the United Kingdom—\n(i) includes turnover of any undertaking in the same group as the company so far as that turnover is attributable to activity in the United Kingdom, and\n(ii) includes turnover attributable to goods or services supplied to, or for the benefit of, persons in the United Kingdom, however and wherever that turnover is booked, recognised or accounted for;\n(cb) must include provision disregarding, for the purpose of determining turnover in the United Kingdom, any arrangement the main purpose, or one of the main purposes, of which is to reduce the amount of a financial penalty that may be imposed under the regulations;”
After Clause 25, insert the following new Clause—\n“Funding of the Small Business Commissioner: statement to Parliament\n(1) The Secretary of State may not appoint a day under section 31(1) for the coming into force of any provision of Part 2, or of Schedule 4, until the Secretary of State has laid before each House of Parliament a statement setting out the Government’s plan for funding the exercise by the Small Business Commissioner of the functions conferred or modified by this Act.\n(2) The statement must in particular set out—\n(a) the resources the Secretary of State considers the Commissioner will require to operate the SBC adjudication scheme and to carry out investigations under section 2H of the Enterprise Act 2016,\n(b) the funding the Secretary of State intends to make available for each of the first three financial years following commencement, and\n(c) the basis on which the adequacy of that funding will be kept under review.”