Payment transparency and contract performance reporting now have firm start dates. The Cabinet Office has made the Procurement Act 2023 (Commencement No. 4) Regulations 2025, signed on 9 December, bringing section 69 (payments compliance notices) and section 71 (assessment of contract performance) into force on 1 January 2026 for contracts awarded under the Act. Section 69 for Welsh‑regulated procurements and section 70 (quarterly payment disclosures) follow on 1 April 2026. These duties only bite on contracts let under the new regime, which went live on 24 February 2025 and sits alongside legacy rules for older procurements.

The payments compliance notice is a six‑monthly statement that shows how quickly an authority pays suppliers. Guidance published by the Cabinet Office confirms the notice must set out average days to pay, the share of invoices paid in 1–30, 31–60 and 61+ days, the percentage paid in line with the statutory 30‑day term, and a finance director (or equivalent) sign‑off. Notices must be published on the central digital platform.

Timelines matter for cash flow planning. With section 69 starting on 1 January 2026 in England, Scotland and Northern Ireland, the first reporting period runs to 31 March 2026, making the first notice due by 30 April 2026. For devolved Welsh procurements, the first period runs 1 April to 30 September 2026, so the first notice is due by 30 October 2026. Earlier Cabinet Office guidance had trailed an initial period beginning 1 October 2025; the new commencement regulation resets that timetable.

Section 70 adds quarterly spend visibility. Authorities must publish specified information about any payment over £30,000 made under a public contract, within 30 days of the quarter end. In practice, the first disclosures would cover April–June 2026 and fall due by 30 July 2026 for non‑Welsh procurements. The duty does not apply to concession contracts, contracts awarded by schools, or utilities contracts awarded by private utilities.

Section 71 compels performance assessment and publication where KPIs are set, which is generally expected on contracts above £5 million. At least annually and at termination, authorities must assess against KPIs and publish a contract performance notice. Where breach leads to termination, damages or settlement, information must be published that future buyers can consider. Light touch contracts are out of scope for KPI‑setting and performance publication.

For suppliers, the headline is improved predictability. The Act already implies a 30‑day payment term across the public contract supply chain, counted from invoice receipt rather than validation. As PCNs and quarterly spend data arrive through 2026, we expect tighter credit control from buyers and fewer long‑dated receivables for SMEs selling into departments, councils and the NHS.

Consider a £12 million per‑year managed service awarded in March 2026 under the Act. The buyer will set and publish at least three KPIs, then issue a performance update within 12 months and on termination. If performance trails targets and does not improve after fair opportunity, that record becomes part of the public domain and may influence exclusion decisions in future competitions. Suppliers with thin margins should plan for KPI risk alongside price risk.

What should buyers do now? Finance teams should ensure invoice systems capture the ‘invoice received’ date accurately, because that drives both the 30‑day term and the reporting metrics. Commercial teams should agree a pragmatic KPI set that is measurable and auditable, and line up internal sign‑off for notice publication. These numbers will be read outside your organisation-by boards, auditors and competitors.

Suppliers should map which live contracts sit under the new regime and plan around two key 2026 checkpoints: payments compliance notices due by 30 April and 31 October, and section 70 payment disclosures due by 30 July and 30 October. If a buyer’s PCN shows slippage against the 30‑day term, escalate early via the contract manager and, if needed, raise the matter with the Public Procurement Review Service.

Devolution and scope still matter. The Welsh timetable is later for PCNs, and quarterly payment disclosures under section 70 are not yet commenced for Welsh‑regulated procurements. Above all, these duties only apply to contracts awarded under the Procurement Act: procurements started before 24 February 2025 remain under legacy regulations for their lifecycle, including call‑offs from older frameworks.

The takeaway for 2026 is simple: pay within 30 days, publish on time and expect performance scores to be visible. For many SMEs, that transparency could be the difference between a tight quarter and breathing space. For buyers, strong payment discipline and credible KPIs will be as important to reputation as they are to compliance.