Billions of pounds in late payments are owed to tradespeople across the UK, according to a new study.
Ford Pro, the vehicle manufacturer’s commercial division, conducted the research after the issue of delayed or missing payments was reported as the major issue facing sole traders heading into 2025, with many SMART repairers and some small bodyshops among them.
Tradespeople owed billions
Tradespeople are owed as much as £3.5 billion in overdue payments, which equates to an average of £3,942 each. Almost two-thirds of tradespeople experience late payments regularly, with an average delay of 35 days, while 71% have experienced outright payment refusal.
Behind this figure emerges a worrying trend among homeowners, with 18% admitting to spending money earmarked for tradespeople’s payments on personal luxuries, and 14% admitting to forgetting to pay altogether.
The financial strain of late payments means nearly one-quarter of tradespeople (23%) are struggling to cover essential bills each month, and almost one in five (17%) are resorting to payday loans to make ends meet.
With the holiday season approaching and with tradespeople owed billions, one in five (20%) tradespeople expressed concern about their ability to support their families this Christmas, and the same percentage admitted to cancelling holidays in the past due to late or withheld payments.
Social experiment
To tackle the late payment crisis head on Ford, the manufacturer of the Transit Custom, conducted a social experiment with UK homeowners, with the results highlighting that getting customers to pay quicker could be as simple as raising awareness among homeowners. In fact, two-thirds (67%) of homeowners say they would pay invoices faster if they understood the impact of delayed payments on tradespeople and their families.
The experiment found that invoices are paid an average of one day sooner when homeowners are reminded of the financial strain late payments create for tradespeople.
Mandy Dean (pictured top), director of Commercial Vehicles, Ford UK and Ireland, said of the news that British tradespeople owed billions:
“As Britain’s leading manufacturer of commercial vehicles we’ve been keeping tradespeople moving for 58 years – they’re the real backbone of Britain, keeping our lights on and our daily lives moving. We believe it’s our responsibility to support them to help their businesses thrive.
“We know that homeowners and tradespeople are all feeling the pressure so we want bring both parties closer together – from helping tradespeople create more effective invoices, to helping homeowners understand the potential impact of an unpaid invoice.”
Coinciding with the research, Ford has unveiled a festive content series, fronted by its “Little Debt Collectors”, an unlikely duo whose mission it is to get Brits to take responsibility for their actions and pay tradespeople on time:
