New COVID-19 Payment to Suppliers Procurement Policy Note

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This is an update to inform you about a change due to circumstances relating to COVID-19.

Cabinet Office and Crown Commercial service have released a PPN concerning payment to suppliers during COVID-19 period which is to be implemented with immediate effect.


  • Central Government Departments
  • Executive agencies
  • Non-departmental public bodies
  • Local authorities
  • NHS bodies
  • The wider public sector

COVID-19 has presented the public sector with challenges around keeping supply chains open and making sure suppliers are kept financially buoyant. Contracting authorities must act now to ensure suppliers who are at risk are in a position to resume normal contract delivery once the outbreak is over.

All contracting authorities should:

  • Urgently review their contract portfolio and inform suppliers if they believe they are at risk
  • Put in place appropriate payment measure to support supplier cash flow
  • Where contracts payments are based on ‘payment by results’ make payments based on previous invoices
  • Ask suppliers to act on a ‘open book’ basis and make cost data available to the contracting authority during this period
  • Ensure invoices submitted by suppliers are paid immediately on receipt

Please see the PPN for further information here.