Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what recent steps he has taken to ensure that government departments pay contractors on time and in full; and if he will take steps to ensure that all future payments to subcontractors who work on government projects are paid on time and in full.

Central Government pays over 80% of undisputed invoices within 5 days. Public Sector authorities are required to pay within 30 days upon receipt of a correct invoice and we encourage suppliers to report issues of late payment to Cabinet Office's Mystery Shopper service.

We are currently implementing Lord Young’s recommendations to ensure that contracting authorities will have a clause in all new contracts mandating payment within 30 days of an undisputed invoice all the way down the supply chain.

The Cabinet Office will be issuing guidance to contracting authorities on this new legislation, including standard contract clauses that can be used in all new contracts.