Written question asked by Andrew Lewer (Conservative) on Wednesday, 31 January 2024, in the House of Commons. It was due for an answer on Friday, 2 February 2024. It was answered by Damian Hinds (Conservative) on Thursday, 8 February 2024 on behalf of the Department for Education.

Department for Education: Billing

Question: To ask the Secretary of State for Education, what steps her Department is taking to (a) reduce and (b) end the use of cash retentions.

Answer: In procuring construction works, the department takes account of relevant legislation, best practice and government guidelines. In deciding whether cash retentions are appropriate for procurements, the department balances managing public money considerations, the suitability of alternative approaches, and the need to ensure and enforce quality standards against the department’s desire to improve payment practices and cashflow through the supply-chain. The department regularly reviews its approach to payment and security in relation to construction procurements. In considering the use of cash retentions on future procurements, including in its construction frameworks, the department will continue to consult with contractors and other stakeholders to ensure that an appropriate position is reached and, where possible, that the use of cash retentions is reduced or eliminated.

Secondary information