Commercial Payments Bill Enters Lords Committee Stage

Tuesday 21st July 2026

Members of the House of Lords begin their detailed examination of the Commercial Payments Bill in committee stage today.

The Commercial Payments Bill will strengthen existing laws and introduce new measures to combat late commercial payments in the UK. Key provisions include 60 days maximum payment terms, banning retention clauses in the construction sector and expanding the Small Business Commissioner’s powers to resolve payment disputes.

As part of the Bill, the Small Business Commissioner will be empowered to resolve contractual payment disputes through a confidential adjudication scheme operating outside the court process, enabling small businesses to recover money owed to them quickly and efficiently. 

Members speaking on day one of committee stage will consider amendments to the bill on subjects including:

• copyright and intellectual property
• terms in public construction contracts
• powers to shorten implied payment terms
• protection of small businesses
• equalities and digital accessibility
• time limits for investigations
• AI-assisted payment monitoring.

Related News: Late Payment Bill - Second Reading at House of Lords