Welcome to Debt Matters. Today, we are looking at a major UK government update on late payments and what it could mean for businesses, suppliers, and the wider debt collection landscape.

The Department for Business and Trade published its response to the late payment consultation on 24 March 2026. In that response, the government said late payments are estimated to cost the UK economy almost £11 billion a year, with around 14,000 businesses closing each year as a result. It also said businesses are owed an estimated £26 billion in late payments at any given time.

Some of the biggest proposals include:

• stronger powers for the Small Business Commissioner
• a maximum payment term of 60 days between businesses, with limited exemptions
• a statutory deadline for disputing invoices
• compensation w ...