UK Parliament has published an update on the House of Lords second reading of the Commercial Payments Bill, which would strengthen existing UK laws on late commercial payments. The bill’s main measures include banning retention clauses in the construction sector and expanding the Small Business Commissioner’s powers to resolve payment disputes. The second reading debate focused on the bill’s primary objectives and on issues peers believe may require amendment. Lord Leong opened the debate for the government, with contributions from members including Baroness Alexander of Cleveden, Lord Docherty of Milngavie, Lord Leigh of Hurley, Baroness Kramer and Lord Thomas of Cwmgiedd. The next stage is committee stage for line by line examination, which has not yet been scheduled.
UK Parliament2026-06-10
UK Parliament debates Commercial Payments Bill to tighten late payment rules and ban construction retention clauses
The UK Parliament has reported on the House of Lords second reading of the Commercial Payments Bill, which aims to strengthen late commercial payments law by banning retention clauses in the construction sector and expanding the Small Business Commissioner’s powers to resolve payment disputes. The debate focused on the bill’s core objectives and potential amendments raised by peers, with the bill now proceeding to committee stage for detailed scrutiny.