The Office of the Small Business Commissioner has helped recover £10m in overdue payments for small businesses since its creation in 2017, highlighting the continued scale of late payment problems in the UK economy.
According to figures released by the Office of the Small Business Commissioner, almost £1m has been recovered so far in the current financial year alone, with more than £500,000 secured in December 2025. The office intervenes when small firms report unpaid invoices or what they consider to be unfair payment practices by larger companies, working with both sides to resolve disputes and release outstanding funds.
Late payments remain a persistent challenge for small businesses. Government research estimates that delayed and unpaid invoices cost the UK economy around £11bn a year and contribute to the closure of roughly 4,000 businesses annually. The issue has prompted renewed policy attention, with ministers earlier this year launching a consultation on tougher measures, including potential additional powers for the Small Business Commissioner.
The commissioner’s statutory role, established under the Enterprise Act 2016, includes reviewing complaints about late payment, investigating formal cases and offering advice to smaller firms navigating disputes with larger customers. While the office cannot compel payment, it can apply pressure by scrutinising payment practices and escalating unresolved cases.
One small IT business that sought help this year said the intervention proved critical after months of unsuccessful attempts to secure payment from a large travel company. The firm said the invoice had been overlooked after it ceased to be an active supplier, leaving the business struggling to cover basic costs. With the commissioner’s involvement, the payment was eventually released, allowing the company to meet payroll.
Emma Jones, the Small Business Commissioner, said the £10m milestone reflected both rising awareness of the service and the scale of the problem facing small firms. She noted that late payment does not only strain cashflow but also places significant pressure on business owners’ wellbeing as they worry about meeting bills and keeping their companies afloat.
Jones added that the office’s impact depended on small businesses coming forward. “We can only intervene where firms raise cases,” she said, encouraging those affected by persistent late payment to seek support.
While the sums recovered remain small relative to the overall cost of late payment to the economy, the figures underline the role of targeted intervention in easing cashflow pressures for individual businesses, particularly during periods of wider economic uncertainty.
