BT earns Silver Award for fair pay practices with suppliers

BT has achieved a Silver Award under the UK Government-backed Fair Payment Code, reflecting its commitment to timely payment practices with suppliers.

The Fair Payment Code, overseen by the Small Business Commissioner, sets rigorous standards for payment terms within the supply chain. BT, now recognised as the largest information technology business to achieve this award, has pledged to pay 95% of invoices within 60 days and at least 95% of invoices to small businesses within 30 days.

To attain the Fair Payment Code award, businesses are required to present evidence not only of their invoice payment data but also demonstrate compliance with clear, fair, and collaborative principles in their payment practices. Award levels indicate a firm's reliability as a payer and give suppliers a defined expectation.

BT's Silver Award places it at the forefront of the telecommunications sector's response to late payments. The criteria for the award are recognised as stringent, highlighting the effort required to align with the Fair Payment Code's provisions.

Johnny McQuoid, Managing Director – Group Business Services at BT, said, "As the UK's digital backbone, at BT, we're working with suppliers in all sectors, of all sizes, and we know how important timely payment is for their cash flow. We're very proud to hold the Fair Payment Code Silver award. As well as a mark of trust for our suppliers, it's an important recognition of the hard work our teams across BT are doing to be clear, fair and collaborative with our supply chain."

The issue of late payments remains a significant concern for UK businesses, impacting their cash flow and creating financial uncertainty. According to recent research, on average, 38 businesses close each day due to the consequences of late payments. Cash flow interruptions can restrict a business's ability to pay its own bills and, in some cases, lead to closure.

Liz Barclay, Small Business Commissioner, commented, "We know that overdue payments and long contractual payment terms cost the UK economy. BT has stepped up and shown that with committed leadership, businesses of all sizes can transform the way they pay. Embedding a culture of fair payment practices in your business is good for your own bottom line as well as for the economy, communities and wider society. Everyone benefits when suppliers are paid quickly and fairly."

Firms awarded via the Fair Payment Code are expected to create transparent processes and maintain open communications with their suppliers as a measure to ensure accountability and consistency in their payment approaches. This aligns with national efforts to address long-standing challenges related to supply chain finance and fair pay practices.

The Silver Award signals BT's adherence to government-approved standards in payment processes, with the goal of supporting economic resilience among businesses connected to its supply chain. The Fair Payment Code is part of a broader effort to mitigate the adverse effects of late payments across various industries in the UK.