Paid in 30 days: how the Procurement Act protects cash flow down the supply chain

Cash flow makes or breaks a small business, and late payment has long been one of the biggest risks of public-sector work. The Procurement Act 2023 tackles it directly.

30 days, by law

From 24 February 2025, public contracts must include a 30-day payment term: valid invoices are paid within 30 days of receipt. Crucially, this isn't limited to the prime contractor.

It flows down the chain

Under section 73, the 30-day term is implied into every public sub-contract — so the benefit of prompt payment passes down through the tiers of the supply chain, which matters most to the smaller firms doing the work further down.

With teeth: compliance notices

Contracting authorities must publish payment compliance information roughly every six months, showing how well they pay invoices within 30 days. That transparency is designed to keep buyers honest.

What to do as a supplier

Make sure your invoices are valid and complete so the clock starts cleanly, and know your rights if you're a sub-contractor — the 30-day term applies to you too, not just the main contractor.

Sources: GOV.UK — New legislative requirements under the Procurement Act 2023 · GOV.UK — Prompt payment policy