Small businesses across the UK have secured £10 million in late and overdue payments with the help of the Small Business Commissioner’s Office, marking a milestone in efforts to tackle the damaging payment practices of large organisations.
Almost £1 million has been recovered so far this financial year alone, with more than £500,000 recovered by December 2025, highlighting the speed of enforcement and resolution of cases compared to previous years.
Since it was established in 2017 under the Business Act 2016, the Small Business Commissioner’s office has acted for small firms dealing with unpaid invoices or incorrect payment behaviour. It reviews inquiries, investigates legal complaints and works directly with major companies to resolve disputes and recover outstanding funds.
The level of the problem is always important. Government research shows late payments cost the UK economy around £11 billion a year, contributing to nearly 4,000 business closures a year – the equivalent of 38 firms every day. Earlier this year, ministers launched a consultation on strengthening the powers of the Small Business Commissioner as part of a wider campaign to tackle the culture of late payments.
One small IT business supported by the Commissioner this year said the intervention proved effective after months of unsuccessful efforts to retrieve an overdue invoice from a major travel company.
“We are very grateful to the Small Business Commission for helping us to recover the payment we had made after many unsuccessful attempts via emails, phone calls and website forms,” the spokesperson said. “Since we’re a small business of just four people, we weren’t on their radar. Thanks to SBC’s funding, we were able to take the lead this month.”
Emma Jones, Small Business Commissioner, said the £10 million milestone underlines both the scale of the problem and the importance of small firms coming forward.
“What an amazing achievement,” she said. “More than £10 million has been recovered from small businesses, with almost £1 million recovered this financial year alone – three times as much as last year. Late payments are not only bad for business, they also affect founders’ mental health as they worry about paying debts and keeping their business afloat.”
Jones added that the office can only deliver results when businesses raise charges and urged many small firms to seek help if they are being paid late by large clients.
Small businesses with outstanding payment disputes that have failed to resolve directly are encouraged to contact the Small Business Commissioner for advice and support.
