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Published: March 26, 2026

We welcome the Government’s move to get tougher on late payments – and in particular the proposal to ban retentions.

For scaffolding businesses and SMEs across construction, this is long overdue. Too many businesses are still waiting months to be paid, or seeing money tied up – and sometimes never returned – through retentions. At a time when margins are tight and costs remain high, this creates further pressure on cashflow and limits the ability of businesses to invest, grow, and plan with confidence.

The proposed measures – including a 60-day cap on payment terms, mandatory interest on late payments, and stronger enforcement against persistent offenders – are all positive steps. Taken together, they signal a clear intent from Government to rebalance how the supply chain operates and to support smaller businesses who too often carry disproportionate risk.

However, the real issue is culture. Poor payment practices have been baked into the system for years, becoming an accepted – if damaging – part of doing business in construction. That must now change.

Fair payment is not complicated. If the work has been done, businesses should be paid – in full and on time.

This is a big step forward in policy, but it now needs to deliver in practice. Consistent enforcement, transparency, and a genuine shift in behaviour across the industry will be key to ensuring these reforms make a meaningful difference on the ground.

Payment is one of the Scaffolding Association’s three core pillars in its engagement with Government, alongside people and procurement. We have long advocated for reform in this area, consistently highlighting the damaging impact that late payment and retentions have on businesses across the sector. These changes reflect many of the issues we have raised over several years, and we will continue to press for a system that is fair, transparent, and works for the whole industry.