Question to the Cabinet Office:

To ask Her Majesty's Government what is the process by which commercial suppliers can claim statutory interest on overdue invoices owed by public authorities, as provided for by the Late Payment of Commercial Debts (Interest) Act 1998; and what guidance is available to such suppliers regarding their right to claim interest on overdue invoices.

Regulation 113 of the Public Contract Regulations requires all contracting authorities to pay undisputed invoices within 30 days and ensure this payment term is passed down the supply chain.

Where undisputed invoices are not paid within 30 days, interest becomes payable as set out in the late payment legislation. Under the Late Payment of Commercial Debts (Interest) Act 1998, suppliers can claim statutory interest, and debt recovery costs, on invoices not paid within the agreed period.

The Department for Business, Energy & Industrial Strategy have published a user guide on the late payment directive and a copy is attached.