Where the bill is now
3rd reading, House of Lords
From the UK Parliament Bills API, last changed by Parliament on 28 September 2026; checked 19 October 2026. Stages in the other House follow once a House finishes its third reading.
| House | Stage | Sitting dates |
|---|---|---|
| Lords | 1st reading | 19 May 2026 |
| Lords | 2nd reading | 9 June 2026 |
| Lords | Committee stage | 21 July 2026 |
| Lords | Report stage | 15 September 2026 |
| Lords | 3rd reading | 20 October 2026 scheduled |
The bill on bills.parliament.uk (text, amendments, explanatory notes). Contains Parliamentary information licensed under the Open Parliament Licence v3.0.
What the bill would do
From the Department for Business and Trade's overview (19 May 2026):
- Maximum payment terms of 60 days, with strictly limited exemptions.
- Mandatory interest on late payments at 8% above the Bank of England base rate.
- A right to a fixed sum for suppliers where a purchaser raises a dispute late or without sufficient information.
- A ban on deducting and withholding retention payments under construction contracts (timing to be consulted on).
- New powers for the Small Business Commissioner: investigating persistent poor payment practice, directions and financial penalties, adjudicating payment disputes between small and larger businesses, and enforcement over payment reporting breaches.
Reporting changes to expect
Secondary legislation will require large companies to report the interest they have paid and owe, and boards or audit committees of persistently late-paying large companies to publish commentary on why and what they are doing about it.
When
The bill was introduced in the House of Lords in May 2026. The government says there will be a lead-in time and a transition period before the powers come into force, and that the measures will not be applied retrospectively.
Source: GOV.UK, "Commercial Payments Bill: overview" (Department for Business and Trade, 19 May 2026), Open Government Licence v3.0. Stage data: UK Parliament Bills API, Open Parliament Licence v3.0.
Get ready now
Your current payment practices figures show how far you are from a 60-day ceiling. Run your invoice export through the free calculator to see the share of invoices paid after 60 days today.
Questions
Is there a 60-day maximum payment term now?
Not yet. The Commercial Payments Bill would impose maximum payment terms of 60 days with strictly limited exemptions. It must pass both Houses and receive Royal Assent, and the government has said there will be a lead-in time and a transition period.
What interest would apply to late payments?
The government's overview says the bill mandates interest on late payments at 8% above the Bank of England base rate.
Will it apply to existing contracts?
The government says the measures will not be applied retrospectively: payments, contracts and disputes will be judged by the rules in place at the relevant time.
What changes for payment practices reporting?
The overview says secondary legislation will add requirements for large companies to report interest paid and owed, and for boards or audit committees of persistently late-paying large companies to publish commentary. The Small Business Commissioner gains enforcement powers over reporting breaches.