Small businesses across the UK have recovered £10 million in late and overdue payments with the help of the Small Business Commissioner's Office, marking a major milestone in efforts to tackle harmful payment practices by larger organisations.
Nearly £1 million has been recovered so far in the current financial year alone, with over £500,000 secured in December 2025, reflecting an acceleration in enforcement and case resolution compared to previous years.
Since its establishment in 2017 under the Enterprise Act 2016, the Office of the Small Business Commissioner has acted on behalf of small firms facing unpaid invoices or unfair payment behaviour. It reviews inquiries, investigates formal complaints and works directly with large companies to resolve disputes and release outstanding funds.
The scale of the problem remains significant. Government research shows that late payments cost the UK economy around £11 billion a year, causing around 4,000 businesses to close annually – the equivalent of 38 firms closing 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.
A small IT business supported by the commissioner this year said the intervention proved decisive after months of unsuccessful attempts to recover overdue invoices from a large travel company.
A spokesperson said, “We are incredibly grateful to the Small Business Commissioner for helping us recover the long overdue payment after numerous unsuccessful attempts via email, phone calls and website forms.” “Being a microbusiness of only four people, we were not on their radar. Thanks to SBC's support, we were able to make payroll this month.”
Small Business Commissioner Emma Jones said the £10 million milestone underlines both the scale of the problem and the importance of small companies coming forward.
“What an incredible achievement,” she said. “Over £10 million was recovered for smaller companies, with almost £1 million recovered this financial year alone – three times the amount secured last year. Late payments are not only bad for business, it also takes a serious toll on the mental health of founders as they worry about paying the bills and keeping their business afloat.”
Jones said the office can only deliver results if businesses raise cases and urged more small companies to seek help if they are being paid late by larger customers.
Small businesses with unresolved payment disputes that they are unable to settle directly are encouraged to contact the Small Business Commissioner for advice and support.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.