DECC aims to reduce invoice payment times to 10 working days and all valid goods and services invoices received are paid as soon as they have been authorised by the DECC officials responsible for the contract. We are applying this policy to all suppliers of goods and services but will not be changing our existing contractual terms and conditions.
Guidance for suppliers on the correct way to submit an invoice.
The Prompt Payment Code is another critical step in a series of structured initiatives devised by the government with The Institute of Credit Management (ICM) to tackle the crucial issue of late payment and help small businesses especially.
DECC payment performance
The percentage of invoices paid by the Department from April 2009 to April 2010 are within 10 days. As of May 2010 the percentage of invoices paid are within five days.
| |
2009 (%) |
2010 (%) |
2011 (%) |
| January |
– |
86.90 |
88.70 |
| February |
– |
95.50 |
93.90 |
| March |
– |
96.60 |
95.00 |
| April |
98.22 |
96.20 |
93.10 |
| May |
97.18 |
92.30 |
91.40 |
| June |
98.01 |
94.40 |
90.80 |
| July |
97.15 |
93.80 |
89.70 |
| August |
93.74 |
93.20 |
88.40 |
| September |
85.21 |
92.30 |
94.00 |
| October |
92.70 |
91.00 |
89.20 |
| November |
92.10 |
91.80 |
90.30 |
| December |
90.70 |
93.00
|
89.20 |
Prompt payment Q&A for DECC suppliers
Q Will this apply to my organisation?
A We will be speeding up the payment process for all goods and services suppliers.
Q Even if we are not an SME?
A Larger organisations will still benefit from the faster payment terms. However, if you have subcontractors we will be asking you to pass on those faster payment terms to help smaller organisations further down the supply chain.
Q Will the terms and conditions of my contract have to change?
A No.
Q My organisation is a grant recipient - will our payment terms be faster?
A The grant payments we make are already usually on payment terms of 5 to 10 days.
Q When do I start counting the 10 days?
A We will count from the day we receive the invoice at our designated address (see below).
Q What constitutes a valid invoice?
A If your contract with the Department is for goods or services of over £250 in value you will need to quote a valid Purchase Order number or your invoice will be returned. Your primary contact within the Department should be able to supply this if you do not already have one. Our guidance for suppliers includes other information which should help you submit a valid invoice.
Q Where should I send my invoices?
A You should send all DECC invoices to:
DECC Finance Team
Queensway House
Billingham
Stockton-on-Tees
TS23 2NF
Q Who do I contact if I have a query about an invoice or a payment?
A You should get in touch with your primary contact within the Department, usually the person who manages your contract for DECC.
Q How will I know when a payment has been made?
A You will receive a remittance advice, by e-mail if you have notified us of an appropriate address, or in the post. We make payments every day and the advice will be sent out on the day we make the payment. Unless you have arranged otherwise, all payments are made by BACs and will take two days to arrive in your account.
Q What can I do if I believe I have been paid late?
A If your invoice was legitimate and we took over 30 days to pay it you may have recourse through the Late Payment of Commercial Debts (Interest) Act 1998.
Late Payment
The government introduced the Late Payment of Commercial Debts (Interest) Act 1998, which gave small firms with 50 or less employees a statutory right to interest for the late payment of commercial debts. This statutory right to interest and other new entitlements have been available to all businesses and public sector bodies since 7 August 2002.
A guidance booklet, A User's Guide to Late Payment Legislation can be downloaded here (13 pages). Alternatively copies can be ordered from the Publications Orderline by calling 0870 1502 500, quoting URN 02/883.
The late payment legislation does not prevent businesses from setting, and agreeing with customers, their own terms of business including the level of interest to be charged on late payment.
Leaflets providing guidance on all aspects of recovering debts through the courts are available from the Court Service or from county courts.
The Law Society operates the Lawyers For Your Business scheme, offering a free consultation with a solicitor. Details of the scheme can be found on the Law Society website.
Business Debtline provides free, confidential and independent advice on how small businesses can deal with debt problems. The advice they provide is targeted to the small business.