Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what advice his Department issues to NHS bodies on setting payment terms for NHS suppliers.

The Department issues guidance through the Department of Health Group Manual for Accounts which sets out that National Health Service bodies must comply with the Prompt Payment Code target to pay at least 95% of invoices, both for NHS and non-NHS suppliers within 30 days of receipt of an invoice. NHS bodies, like all Government bodies, are required to also follow the HM Treasury guidance ‘Managing Public Money’, which sets out that they should include a clause in their contracts requiring prime contractors to pay their suppliers within 30 days.

The Department has developed standard NHS terms and conditionsforuse by NHS bodies procuring goods and services from commercial suppliers. The link below takes you to the full suite of the NHS Terms and Conditions including the overarching guidance note.

https://www.gov.uk/government/publications/nhs-standard-terms-and-conditions-of-contract-for-the-purchase-of-goods-and-supply-of-services

Clause 9 ‘Price and Payment’ covers 30 day payment terms (cl 9.6) and also states the Authority shall endeavour to pay sooner in accordance with any applicable government prompt payment target. Also, Clause 28.5 mirrors prompt payment requirement through the supply chain.