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27th October 2021

Procurement Policy Note 08/21: Everything you need to know

On 21 October 2021 the Cabinet Office published its latest Procurement Policy Note 08/21: Taking account of a bidder’s approach to payment in the procurement of major government contracts. The PPN replaces PPN 07/20 and applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.

What’s different?

  • The key update is the increase to the threshold suppliers must meet to demonstrate they promptly pay companies in their supply chain when bidding on central government contracts worth over £5m per year.

  • From April 2022, suppliers will be required to demonstrate they pay 90% of invoices within 60 days, as well as providing an action plan for improvement in the future.

  • This is an increase from the current 85% set out in PPN 07/20.

  • All bidders must demonstrate that they meet the required standard in at least one of the two previous six-month periods.

Find out more

Further guidance on Procurement Policy Note 08/21 can be viewed here. You can also view answers to the Frequently Asked Questions published by Cabinet Office.