Following ECA’s extensive campaigning in 2023 and influence within Cabinet Office, draft legislation to extend the Reporting on Payment Practices and Performance Regulations until 2031 was laid before Parliament earlier this year. We were also successful in improving the payment metrics are recorded, to help close some loopholes within the legislation.
Under the new regulations, businesses will be required to report on a number of additional payment metrics which will apply to their financial year beginning on or after 1 January 2025.
The Department for Business and Trade has confirmed that for companies with a financial year starting on 1 January, their first reports containing the new metrics will be for the period 1 January ‐ 30 June 2025 and need to be submitted by 30 July 2025.
We are awaiting updated guidance on these regulations, which should provide clarification on exactly what is required in relation to the new metrics. Government has also confirmed that metrics on retentions will be introduced via additional legislation later this year.
One of the league tables which helps understand the data that large firms have to report on is Good Business Pays.
ECA Members can find individual payment performance reports on the Government website. These are free to download, and can help ECA Members make more infomred decisions about who they do business with.
Last updated 13 March 24