The Association of Professional Staffing Companies (APSCo UK), has welcomed the UK Government’s latest consultation on tackling poor payment practices, praising the inclusion of several measures long advocated for by the organisation and its members.
In its response to the ‘Late payments consultation: tackling poor payment practices’, which closed last week, APSCo expressed broad support for the proposed reforms, which aim to improve transparency, accountability, and fairness in business-to-business payment practices.
The trade association noted that many of the recommendations it submitted in 2022 – and raised in ongoing discussions with Government decision makers – are now being addressed under the current proposals.
Key Reforms Outlined in the Consultation
The consultation, launched by the Department for Business and Trade, outlines plans to introduce board-level oversight of payment performance, statutory limits on payment terms, and enhanced powers for the Small Business Commissioner.
These reforms are designed to ease the financial pressure on SMEs and second-tier suppliers, particularly those operating in the recruitment and outsourcing supply chain.
APSCo’s Response and Focus Areas
Tania Bowers, Global Public Policy Director at APSCo commented, “We are pleased to see the Government taking meaningful steps to address the persistent issue of late payments.
“Our members have long reported the strain caused by extended payment terms, especially when they are required to pay contractors within days while waiting months for reimbursement from end clients.
“These proposals reflect many of the changes we’ve called for, and we’re encouraged by the direction of travel.
“We particularly welcome the move to separate disputed invoices from standard payment reporting, and the emphasis on greater transparency in director reports.
“However, we continue to urge the Government to ensure that complex billing processes and ‘pay when paid’ terms are also addressed, as these pose significant risks to supply chain stability.
“APSCo has reiterated its call for further clarity around payment terms in supply chain finance in its submission to the latest consultation.
“We believe that robust regulation and accurate reporting are essential to safeguarding the financial health of SME recruitment businesses and ensuring fair treatment across the staffing supply chain.”
Astute’s Perspective on Payment Reform
Matt Leech, Finance Director at Astute People, added, “I am pleased to see APSCo supporting the Government’s plans to tackle late payments.
“For smaller businesses, regular delays in payment can create real challenges – especially when we still need to pay our own people and suppliers on time.
“Clear payment terms and stronger powers for the Small Business Commissioner could make a big difference.
“Transparency at board level is also a welcome move because late payments aren’t just a finance issue – they affect jobs, growth, and stability.
“There’s still more to do around complicated approval and billing processes and ‘pay when paid’ terms, which often leave smaller suppliers carrying the risk.
“Fairer, simpler processes will help SMEs focus on what matters most: working closely with clients and growing sustainably.”
