The government has launched a New Fair Payment Code (the Code) to tackle late payment of business invoices, reward good practices and ensure SMEs are paid on time. The Code replaces the former Prompt Payment Code; existing signatories to the Prompt Payment Code will not automatically be switched across to the new Code, but must submit an application to join the new Code. The Code whilst voluntary, reflects a clear move from government to tackle inadequate payment practices. The Code sets out different award levels and businesses will have to provide evidence that they are meeting the Code's requirements and complying with its principles:

• Gold Award – for those firms paying at least 95% of all invoices within 30 days
• Silver Award – for those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days
• Bronze Award – for those paying at least 95% of all invoices within 60 days

The tiered system allows businesses to move up the levels to achieve Gold standard to demonstrate improvement, with award standard lasting for two years following which businesses will need to reapply. There is also a “robust complaint system” to allow businesses to alert the Small Business Commissioner to Award holders that may not be meeting the requirements of their Award category or following the Code principles of being “Clear, Fair and Collaborative” with suppliers.