Second tier recruiters supplying staff to central government can expect faster payment in exchange for a margin cut, the Cabinet Office has confirmed.
Ahead of a new framework agreement for central government due to go live in November, a Cabinet Office spokesperson tells Recruiter: “We are committed to achieving a balance between reducing the burden of invoice financing and reduced agency margin, to the mutual benefit of all parties.”
reports in the June issue of the magazine
, faster payment within one or two days with resultant less reliance on invoice discount finance, in exchange for reduced margin, is one of a number of significant breaks from the traditional framework agreements used across the public sector in the new framework.
Another feature confirmed by the Cabinet Office is a ban on ‘pay when paid clauses’. Such clauses - under which managed service providers are not obliged to pay second tier suppliers until they themselves - is a major concern within the recruitment industry.
Ian Makgill, author of a new report ‘Central Agency Staff Pretender Report’ tells Recruiter
that he expects the new framework to be widely adopted across central government, though less so across local government.
“Departments have to demonstrate the exceptional circumstances that would cause them not to use the GPS framework,” says Makgill.
One exception would be specialisms such as supplying in-theatre medical staff for the MOD, says Makgill
Publication of tender details for the new framework is expected within the next week.