Office of the Small Business Commissioner recovers £10 million in late payments for small businesses

The Office of the Small Business Commissioner (OSBC) has announced that it has now helped small and micro businesses recover £10 million in late and overdue payments from larger organisations since it was set up in 2017. This milestone reflects a sharp recent acceleration, with almost £1 million recovered so far in the current financial year and over £500,000 of that in December 2025 alone.​

What has been announced

• The OSBC reports that £10 million of overdue invoices has been paid to UK small businesses following its interventions since establishment in 2017.​

• Almost £1 million was recovered in the current financial year to date, around three times the amount recovered over the same period last year.​

• More than £500,000 was secured in December 2025, indicating a recent step up in enforcement and case resolution activity.​

Why this matters

• UK government research cited in the announcement estimates that late payments cost the UK economy about £11 billion a year and contribute to around 4,000 business closures annually, equivalent to 38 firms a day.​

• The OSBC stresses that late payment not only harms cash flow but also affects the mentalhealth of founders who are unsure how they will pay bills, staff and other obligations.​

Role of the Small Business Commissioner

• The OSBC, created under the Enterprise Act 2016 and operating since 2017, handles enquiries and formal complaints from small businesses about late or unfair payment practices by larger customers in the private sector.​

• It acts as an intermediary: reviewing disputes, challenging poor payment behaviour, and pushing for release of overdue invoices, alongside offering advice and support on improving payment practices.​

Current and future policy context

• The UK government has launched a consultation on tackling late payments, including proposals to strengthen the Commissioner’s powers, such as the ability to levy financial penalties on large businesses that consistently pay late.​

• Plans under discussion include using reported payment data to identify chronic late payers and potentially tightening maximum payment terms over time to improve discipline in supply-chain payments.​

Help for small businesses

• Small firms, freelancers and micro businesses that have unresolved late or unpaid invoices with larger customers can contact the OSBC for free, confidential support in investigating and resolving payment disputes.​

• Case studies cited by the OSBC include a micro IT business of four staff that was finally able to meet payroll after the Commissioner’s intervention prompted a large client to pay a long-overdue invoice.​

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