UK Late Payment Reform 2026

The UK Late Payment Reform 2026 is a package announced by the Department for Business and Trade on 24 March 2026 as the government’s response to its 2025 Late Payments consultation — described as the most ambitious late-payment legislation in over 25 years. Its construction-relevant measures are a proposed ban on withholding retention payments, a 60-day cap on payment terms for large firms paying smaller suppliers, mandatory statutory interest at 8% above the Bank of England base rate, and expanded Small Business Commissioner enforcement powers. It would be delivered partly by amending the Housing Grants, Construction and Regeneration Act 1996.

Connections

• Construction Retention Payments — package proposes to ban retention withholding, source: 2026-03-24
• Housing Grants Construction and Regeneration Act 1996 — statute to be amended, source: 2026
• Prompt Payment Legislation — strengthens the UK regime, source: 2026