£10m in late payments recovered for small firms by Small Business Commissioner

Small businesses across the UK have recovered £10 million in late and overdue payments with the help of the Office of the Small Business Commissioner, marking a major milestone in efforts to tackle damaging payment practices by larger organisations.

Almost £1 million has been recovered so far in the current financial year alone, with more than £500,000 secured in December 2025, highlighting an acceleration in enforcement and case resolution compared with previous years.

Since its establishment in 2017 under the Enterprise Act 2016, the Small Business Commissioner’s office has acted on behalf of small firms facing unpaid invoices or unfair payment behaviour. It reviews enquiries, investigates formal complaints and works directly with larger companies to resolve disputes and release outstanding funds.

The scale of the problem remains significant. Government research shows late payments cost the UK economy around £11 billion a year, contributing to the closure of roughly 4,000 businesses annually — 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 crackdown on late payment culture.

One small IT business supported by the Commissioner this year said intervention proved decisive after months of failed attempts to recover an overdue invoice from a large travel company.

“We’re incredibly grateful to the Small Business Commissioner for helping us recover a long-overdue payment after many unsuccessful attempts through email, phone calls and website forms,” a spokesperson said. “Being a microbusiness of just four people, we simply weren’t high on their radar. Thanks to the SBC’s support, we were able to make payroll this month.”

Emma Jones, the Small Business Commissioner, said the £10 million milestone underlined both the scale of the problem and the importance of small firms coming forward.

“What an incredible achievement,” she said. “Over £10 million retrieved for small firms, with almost £1 million recovered this financial year alone — three times the amount secured last year. Late payment is not only bad for business, it also takes a serious toll on founders’ mental health as they worry about paying bills and keeping their business going.”

Jones added that the office could only deliver results when businesses raised cases and urged more small firms to seek help if they were being paid late by larger customers.

Small businesses with unresolved payment disputes that they have been unable to settle directly are encouraged to contact the Small Business Commissioner for advice and support.

Read more:
£10m in late payments recovered for small firms by Small Business Commissioner