It claimed that, while most central government departments pay main contractors within 10 days, some sub-contractors are left waiting for payment for months at a time.

The FPB highlighted the Ministry of Defence (MoD) as a paragon of swift payment. The department has a target of paying 90% of valid invoices within 10 days, but is currently overachieving at 97.5%.

However, the FPB added that the MoD's 10-day payment pledge only extended to main contractors, with no such guarantees available to sub-contractors.

The MoD said main contractors' payments to sub-contractors should be made "within a specific period not exceeding 30 days from receipt of a valid claim".

Matt Goodman, head of policy at FPB, argued: "For many smaller sub-contractors, this is the real story behind the commitment to prompt public sector payment.

"What is the point in main contractors being paid within 10 days if firms further along the supply chain have to wait considerably longer for their money?"
 

Have you had problems with late payment when sub-contracting on public-sector contracts? Post your comments below.