Haven’t been paid- what can I do?

[AlertCat]

I’m a contractor for the local government, reporting to a member of the public as I provide a funded service to the family. However three times in an 8 month period the LA has failed to provide the funding (previously agreed and not contested by the LA) so my invoices have gone unpaid for weeks at a time (last time the money was due on the last of the month and it was finally paid on the 25th of the following month; the previous time it took them two months to release the money). This is the third time and I am wondering what I can do about it other than complain bitterly! I have no idea when I might be paid: for a fortnight they have been telling the family that it’s awaiting a simple signature- this is their error, which they admit, and the mistake was noted early in January. It’s a substantial sum and I am badly affected by the non-payment. What can I do?

Surely there is a contract? If you can I would invoice them another month or two for “on account” and explain that effectively until there is a prompt payment, there will need to be an on account balance. Also explain that the alternative is late fees. The LA has no excuse and if the fault is with the family then you also need to explain to them that you cannot provide a service if they do not comply and play the emotional card that you can’t afford to wait for a whole month to get paid when you have your own bills to pay.

As a contractor, I'm afraid there isn't a great deal you can do other than keep pushing them. Telling them that you won't provide the service if they don't pay may simply result in them using someone else to do the job. However, you can claim interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998. Interest starts accruing on the due date and is 8% above the Bank of England base rate. Compensation is £40 for a debt of less than £1000, £70 if it is £1,000 or more, £100 if it is £10,000 or more.

Submit invoices weekly perhaps?

You are a contractor. You have the same right as any other business invoicing for services - very few. The power in this business relationship is with the larger party.

Your choices are either to:

1. Keep chasing them for payments but plan your cashflow allowing for them to not arrive on time.
2. Insist that you will only provide services if paid in advance (expect the LA to say thanks but no thanks).
3. Renegotiate your contract to allow you to charge interest on late payments (expect the LA to refuse this or even if they agree for their legal dept to take months to approve it).
4. Seek a new contract with a different LA.

This is interesting, thank you.

thanks for all the replies. It’s so infuriating and also upsetting, as the family is put in the awkward position of not being able to pay, when it’s not their fault- the LA is either exceptionally casual or incompetent. And upsetting for me too!

Can you contact the local County Councillor for your client's area. They can sometimes put pressure on Council staff. I would also consider contacting the local MP and going on the LA's socials too.

Worth considering, thank you

Have you gone directly to your MP? Maybe they can set a fire under someone.

Honestly, each time it’s happened before I have expected it to be the last time. This time has been the straw that broke the camel’s back and I’ve made it clear it’s unacceptable and that I expect it to be sorted out as quickly as possible- I wanted to know if I had any other ammunition. I will certainly go to the MP and send an invoice for the compensation if they don’t cough up by tomorrow end of play.

Who is your contract with?
If its the family they need to pay you, you can agree to give them some wriggle room if they are waiting for funding but they should pay you
If I have misunderstood and its the Govt then thats a different matter

The family are supposed to be given money to pay their choice of supplier. They can’t afford the service privately but qualify for funding from local government. The funding has been approved but not paid. They need continuity of service but the council are making it very difficult.

I appreciate that and they are in a difficult position but as a SE person how my clients get the money to pay me is not my problem.
I get paid or I don't work

Yeah. Normally I would agree, but in these circumstances it’s hard. Not working is the last resort because of the impact on innocent parties. I have said this is the last time though, and I plan to take it further because it is just one aspect of a situation riddled with incompetence and god knows what else, and they shouldn’t get away with it!

I recognise that this is Legal and IANAL, however I am a senior local government officer working in social care.

If this is some type of care arrangement for a disabled child or adult, for which they/their representative receives a 'direct payment' to purchase services from their choice of supplier/PA, then you have no relationship with the local authority at all. That is the very nature of direct payments, there is no legal relationship between the local authority and the 3rd party commissioned by the resident/their representative.

If this is the case, you are not a contractor to the LA, but will be either self employed or an employee of the individual/family representative.

Apologies if this is not the case, but in the event it is, I suspect the advice you receive will be more useful and better informed if you can clarify the exact nature of your employment status.

Does the LA pay you direct?

Or does the family pay you? ie is it possibly the family are saying they can't pay as the LA didn't pay them but it's a lie and they just choose not to pay you until it suits them better?

Yes @TriciaMcMillan that is correct. But the family are not lying, the LA have confirmed in writing to me that they fucked it up and haven’t provided the money.

Bit dismayed that I have no legal recourse to the LA. I don’t want to hound the family, they have more than enough to deal with, but this is a substantial sum I needed a week ago and am really struggling without it.

Have you looked into the Public Procurement Review Service? A friend has used this to get overdue invoices paid by local government in the past

Absolutely understand that, but it is really crucial to understand your employment status as a personal assistant, as it will directly affect your rights, the responsibilities of your employer (the cared for or their appointed representative, unless you are considered self employed), and routes for recourse. I am, however, surprised to hear that the local authority are corresponding with you directly, that is... unusual.

I'll leave legal advice to those qualified, but, if you haven't already, I'd suggest doing some further reading, for example looking at the government website and Skills for Care, where they explain the nuances of personal assistant employment status (this can vary based on a number of factors).

Suggested links below, but do your own research and consider whether you should join a union or sector body for PAs if you haven't already.

Gov.uk

Skills for Care

While I appreciate that the type of role you have means you get very involved with the end user their finances are not your problem
You should not really be getting involved in their funding unless the process requires it and you should not be working for free, presumably you have costs to cover.
I would also look at your contract to see if you are genuinely SE as per the HMRC guidelines