Posted January 19, 2021
The Money Advice Trust, the charity that runs Business Debtline, has welcomed the Government's announcement of action to strengthen the Prompt Payment Code.
Recent Money Advice Trust research based on survey of more than 2,500 self-employed people found that nearly four in 10 (38%) said their business had experienced an increase in late payments since the start of the Covid-19 outbreak – and nearly a quarter (72%) said late payments were making the financial problems caused by the pandemic worse.
With the Government’s response to the consultation on the Small Business Commissioner’s powers due in the next few weeks, the charity said it hopes the changes to the code will be met with enhanced powers to the Commissioner to tackle the issue.
“Today’s announcement of a strengthening of the Prompt Payment Code is welcome. The long-standing problem of late payments has only been made worse by Covid-19 – and the need to tackle this issue has never been more urgent.
“While these measures show the government is listening, they need to be backed-up by enforcement powers. The government’s recent proposals to strengthen the powers of the Small Business Commissioner are welcome, and we urge the government to press ahead with these plans as soon as possible to stamp out this practice once and for all.”
Business Debtline provides free, impartial debt advice to small business owners and people who are self-employed at www.businessdebtline.org