Small businesses across the UK have recovered more than £10 million in overdue invoices with help from the Office of the Small Business Commissioner, as pressure mounts on larger companies to improve payment practices.
The milestone includes almost £1 million recovered so far in the current financial year alone, three times the amount secured over the same period last year. More than £500,000 was recovered in December 2025, highlighting a sharp acceleration in activity as small firms seek support in chasing unpaid bills.
Set up under the Enterprise Act 2016, the Small Business Commissioner has a statutory role to review complaints from small businesses facing late or unfair payment practices by larger organisations. The office acts as an intermediary, investigating disputes, challenging poor payment behaviour and pushing for resolution on behalf of smaller suppliers.
The intervention comes against a bleak backdrop. Government research estimates that late payments cost the UK economy around £11 billion a year, with roughly 4,000 businesses closing annually as a direct result — the equivalent of 38 firms every day.
Earlier this year, ministers launched a consultation on further measures to tackle late payment, including proposals to strengthen the commissioner’s enforcement powers, amid growing concern that voluntary codes have failed to shift behaviour at scale.
One small IT company supported by the commissioner said the intervention proved critical after months of failed attempts to recover an unpaid invoice from a large travel business.
“We’d tried emails, phone calls and website forms, but the invoice had simply been overlooked,” a spokesperson said. “As a microbusiness of four people, we weren’t high on their radar. Thanks to the Small Business Commissioner’s support, we were able to make payroll this month.”
Emma Jones, the Small Business Commissioner, said the £10 million recovery figure showed what could be achieved when small firms came forward.
“Late payment is not only bad for business, it also takes a serious toll on founders’ mental health as they worry about paying staff and keeping the lights on,” she said. “We can only deliver these results if small businesses contact us, and I want to thank every owner who has trusted us to investigate their case.”
Jones added that the near-£1 million recovered so far this year reflected both rising awareness of the service and the scale of the problem still facing small suppliers.
The commissioner’s office is urging any small business with an unresolved payment dispute involving a larger customer to come forward, warning that even well-intentioned firms can allow invoices to slip when suppliers fall off procurement systems or change status.
As pressure builds for tougher enforcement, the figures underline a simple reality: for many small businesses, getting paid on time can mean the difference between survival and closure.
