Small traders across the UK are owed £26 billion in unpaid invoices from big businesses, according to new research from Enterprise Nation and NatWest. The study found that more than two million plumbers and electricians were paid late in the last year, double the rate seen in 2023 and 2024.
Three quarters earn below living wage
The research revealed that 75% of small traders earn less than the living wage, with most scraping by on £20,000 a year for a 49.6-hour week, around £7.75 an hour. Small traders contribute £2.8 trillion to the British economy each year.
Aaron Asadi, Enterprise Nation CEO, said: “Billions of pounds is being lent by the smallest firms in the country to some of the largest. Small businesses need to be supported, not punished.”
New bill targets late payments
Peers in the House of Lords are pushing through the Commercial Payments Bill, which would impose a strict 60-day deadline on big firms to curb poor payment practices. Mr Asadi warned the bill needs “teeth” and “speed” to stop large companies delaying payments while small traders struggle.
Enterprise Nation has partnered with NatWest to support the nation’s 5.7 million tradespeople, aiming to save more than £30 million in productivity losses. Darren Pirie, head of NatWest Accelerator, said the latest scheme will give hardworking tradespeople the chance to grow and thrive.
