New Freedom of Information (FOI) data obtained by Quadient (Euronext Paris: QDT) reveals that several UK government departments have left invoices unpaid since as far back as March 2006. This predates the 2008 Prompt Payment Code, which mandates undisputed invoices be settled within five days and all others within 30 days.
Nearly £2 Million in Oldest Outstanding Invoices
- The combined value of the oldest unpaid invoices is £1,657,881.39
- Suppliers are owed a further £289,262.48
- The Ministry of Defence holds the largest single outstanding invoice, at over £757,000 for work dating back to June 2023
Long Tail of Late Payments
Despite strict regulations, the data shows unpaid invoices ranging from 19 days to more than 18 years overdue. Departments with the longest-standing payables include:
- Foreign, Commonwealth & Development Office (June 2007)
- Department for Environment, Food and Rural Affairs (February 2018)
- Ofgem (February 2019)
On the receivables side, invoices owed to departments are late by 56 days up to 19 years. The largest single unpaid receivable is over £193,000 owed to the Office of Rail and Road. The Department for Work and Pensions, Ministry of Defence, and Department for Education also feature among the oldest receivables, dating back to March 2006, August 2006, and October 2009, respectively. Only Ofwat reported no outstanding balances either way.
Real Consequences of Protracted Payments
“While there are many reasons for slow payments, such as disputes, unfinished work, or personnel changes, these delays aren’t simply administrative oversights – they have real, tangible consequences,” said Laura Elliston, Senior Finance Automation Strategist at Quadient.
“Behind every unpaid invoice lies a business potentially facing cash-flow challenges, a contractor unsure if they’ll be paid, or a critical public service disrupted. The fact some invoices are outstanding for nearly 20 years exposes that delays and difficulties can rumble on for years or even decades. While there will always be exceptions, these delayed payments cannot become more than outliers. If even well-regulated government departments can struggle this badly, the scale of the challenge facing private-sector organisations is clear.”
The Case for Automated Invoice Management
As e-invoicing mandates loom, organisations must adopt technology-driven processes to stay on top of payments. Manual handling exposes both payers and suppliers to errors, delays, and compliance risks.
“The answer isn’t simply stricter oversight or tougher rules – it’s smarter, technology-driven processes,” continued Elliston.
“Automating invoice management through solutions such as e-invoicing provides enhanced visibility and significantly reduces the risks associated with manual processing. Departments and businesses alike urgently need to invest in these advanced solutions to ensure that financial management is timely, accurate, and efficient. Waiting for new mandates or procurement processes to evolve is no longer an option when financial stability hangs in the balance.”
