Government support for Trusted Payments has prompted discussion among UK builders and tradespeople about deposits, stage payments, customer sign-off and cash flow. The aim is understandable: homeowners need protection when paying large sums for home improvements, while reputable contractors also need a reliable way to be paid for work they have completed.
Trusted Payments is currently a voluntary, privately operated platform, not a compulsory government payment system. It records project stages and payments, sets aside a completion payment and provides a dispute route. Builders should understand how that structure affects their normal contracts before deciding whether to use it.
Key points
The position as of 26 October 2026
- Trusted Payments is privately operated but publicly supported by the UK Government.
- Participation remains voluntary. The separate Approved Code initiative is also distinct from Trusted Payments.
- A 10% completion payment is funded at the start of a participating project and held by the Dispute Resolution Ombudsman.
- Current public guidance caps any kick-off payment according to the type of work, with a maximum of 30%.
- Trades do not automatically have to wait 45 days for every unpaid stage: the current resolution guide allows escalation where a payment has been outstanding for more than 14 days.
What is Trusted Payments?
Trusted Payments is a project and payment platform for home improvement work. A homeowner and contractor can record the scope, price and milestones, make payments through the app and use a published dispute process if something goes wrong.
The UK Government announced support for the initiative on 28 August 2026 as part of wider consumer-protection measures. Its announcement also refers to a separate Approved Code being developed with the Furniture and Home Improvement Ombudsman and Chartered Trading Standards Institute. They are different schemes. Read the government announcement.
The Federation of Master Builders describes both initiatives as voluntary and privately run. Government support therefore does not make Trusted Payments a regulator, government department or compulsory licensing scheme.
Is Trusted Payments compulsory for UK builders?
No. As of 26 October 2026, participation remains voluntary. The government's announcement says homeowners will have the option to use the payment protection approach, and the FMB says there is currently no indication builders will be required to join.
The commercial impact may still grow if homeowners start asking contractors whether they support protected stage payments. For now, however, joining is a business decision rather than a universal legal requirement.
How do deposits and stage payments work?
The scheme separates three things: the 10% completion payment, any permitted kick-off payment, and later stage payments.
Payment process
How Trusted Payments works
- 01Project agreedScope, price and milestones are recorded.
- 0210% completion payment set asideThe DRO holds it in a designated client account.
- 03Permitted kick-off paymentA separate initial payment can cover genuine upfront needs, subject to the current cap.
- 04Stages completed and paidThe customer signs off agreed stages through the app.
- 05Completion and snaggingDefects, unfinished items or disputes can be recorded.
- 06Final payment releasedThe completion payment is released in accordance with the terms.
The 10% completion payment
Version 2.8 of the terms says the homeowner pays 10% of the agreed contract price as the Completion Payment once the project agreement is in place. It is held in a client account controlled by the Dispute Resolution Ombudsman, not by Trusted Payments itself. In other words, the final 10% is funded at the beginning rather than simply being withheld from the builder at the end.
The kick-off payment
Trusted Payments' public guidance says a separate kick-off payment may cover genuine upfront needs such as materials, made-to-order items or scaffolding. The amount depends on the work: its examples range from no kick-off for plastering, around 10% for a rewire and up to 30% for made-to-measure work. The published maximum is 30%.
Its current single-storey extension guidance uses a 10% kick-off after the separate 10% completion payment has been funded. That is scheme guidance, not a statutory deposit rule for every UK extension contract. See the extension guidance.
Stage payments
The remaining work is divided into milestones. Current public guidance says the homeowner signs off a completed stage before payment is released. The formal terms say cleared milestone funds, except the Completion Payment, are transmitted to the contractor on the next business day. A public "How it works" page also refers to a 24-hour reconsideration window after approval, so contractors should check the live app and terms for the exact timing that applies to their project.
What happens if a customer refuses to pay?
An overdue payment and a formal consumer complaint are not the same process.
The current Resolution Access & Process Guide says a trade can escalate a payment that has been outstanding for more than 14 days directly to the Dispute Resolution Ombudsman. Trades can also raise problems involving unsigned stages, withheld completion payments, scope disagreements or a customer they believe is acting unreasonably.
The consumer route is different. Homeowners are normally asked to raise the issue with the trade first and allow up to 45 days to put matters right before escalating. Earlier escalation is permitted in circumstances such as abandonment, cessation of trading or an alleged scam. So the widely repeated idea that every builder must automatically wait 45 days for unpaid work is inaccurate.
The resolution guide also says only the payment linked to the issue is paused; other payments continue as normal. In practice, however, a disputed stage can still affect cash flow if that money was expected to fund the next part of the project.
What if the customer does not respond at completion?
Under the current terms, the customer has 14 days after the contractor notifies completion to confirm the job is complete, identify defects or raise a dispute. If they do nothing, the work is treated as complete at the end of that period.
Could Trusted Payments affect a builder's cash flow?
Potentially. A profitable job can still create a cash-flow problem when money arrives later than the costs it is meant to fund.
Illustrative example
A £100,000 home extension
Assume £100,000 excluding VAT. These figures illustrate timing only and are not recommended contract terms.
10% set aside at the start and scheduled for the end of the project.
Illustrative 10% kick-off, consistent with current single-storey extension guidance.
A separate £20,000 completed stage is disputed or not released.
Labour, materials, scaffolding, plant and subcontractors may already need paying.
The example does not mean £30,000 is automatically withheld. The £10,000 Completion Payment was always scheduled for the end; the hypothetical £20,000 stage is a separate disputed payment. If suppliers and subcontractors have already been paid against that stage, the builder may need enough working capital to carry the gap until it is resolved.
What are the potential benefits for reputable tradespeople?
- Clear expectations: scope, stages and values are recorded before the job progresses.
- Written milestones: fewer arguments about when a payment becomes due.
- Better evidence: progress photos, variations and stage approvals can help if a disagreement arises.
- Homeowner confidence: a structured payment process may make some customers more comfortable committing to a substantial project.
- A defined escalation route: both sides have a published process rather than no agreed route at all.
- Final payment committed early: the 10% completion amount is funded at the start.
These are potential advantages, not guarantees of payment or dispute-free projects.
How can builders protect their business?
Professional presentation matters outside the contract too. Clear quotations, consistent communications and credible website design for tradesmen can help customers understand who they are dealing with and how the business operates. A website does not replace proper contracts or payment records, but it can support the same professional standard.
If you are unsure how the scheme interacts with your contract, debt-recovery rights, VAT or other legal obligations, seek qualified legal or financial advice.
What does Trusted Payments currently cost?
The public wording is not completely consistent. Version 2.8 of the terms says contractors pay the sign-up fee displayed in the App, while some public pages describe registration as free. The current sign-up page shows a £35 + VAT charge on the contractor's first project and says other project fees can depend on who initiated the project.
The terms also say milestone transaction fees are normally payable by the homeowner for stages agreed at the start, while charges for additional milestones can fall to the contractor. Because fees are displayed in the app and may change, check the current charge before joining or quoting. Current terms · current sign-up information.
Should builders sign up to Trusted Payments?
There is no blanket answer. Consider the size and duration of your jobs, upfront material commitments, working capital, the way you normally stage payments, current platform fees, evidence requirements and how the dispute process fits with your contracts.
A heavily staged extension business may find the model easier to accommodate than a contractor whose work requires large bespoke purchases before installation. The important point is to model the cash flow before agreeing to use the scheme, rather than discovering midway through the job that the payment structure does not match supplier commitments.
What is the role of the Dispute Resolution Ombudsman?
The DRO holds the Completion Payment and provides the scheme's published dispute route. The current resolution guide discloses that Trusted Payments and the DRO share directors, while stating that individual decision-making is kept separate and Trusted Payments personnel cannot influence decisions.
The guide says homeowners and trades can both use the process. The formal terms also state that using it does not prevent either party from bringing legal proceedings, so it should not be described as removing all external legal rights.
Frequently asked questions
Is Trusted Payments compulsory?
No. As of 26 October 2026, it remains voluntary.
Is Trusted Payments run by the UK Government?
No. Trusted Payments Limited operates the platform. The government has publicly supported it as part of its consumer-protection measures.
Can builders still request deposits?
Within the scheme, the structure uses a 10% Completion Payment set aside first and a separate permitted kick-off payment for genuine upfront needs. Current guidance caps the kick-off by work type and never above 30%. Those scheme limits are not a universal UK legal cap.
Does the customer have to approve each stage payment?
Current public guidance says the homeowner signs off each stage before the payment is released.
Can a homeowner refuse to release payment?
They can raise a problem or dispute rather than approve work they believe is incomplete or defective. The scheme then provides a resolution process.
Do builders have to wait 45 days to escalate unpaid work?
No. The current resolution guide says a payment owed to a trade for more than 14 days can be escalated directly to the DRO. The 45-day period principally appears in the consumer complaint route.
What happens to the final 10%?
It is funded at the start as the Completion Payment and held by the DRO until release is due under the terms, subject to snagging and disputes.
Does Trusted Payments charge builders or homeowners?
Potentially both, depending on the charge and how the project is created. Public wording differs, so check the current app and Version 2.8 terms rather than relying on a single marketing statement.
Consumer protection and builder cash flow both matter
Trusted Payments is trying to address a genuine problem: homeowners can be exposed when large sums move ahead of the work, while reputable builders can be exposed when customers delay money after labour, materials and subcontractors have already been funded.
The current scheme uses a funded completion payment, capped kick-off payments, milestones, sign-off and a dispute route to balance those risks. Whether it works for a particular builder will depend on the type of projects they undertake and how they manage cash flow.
The practical response is not to treat this as a compulsory government scheme or assume every dispute means a 45-day wait. Understand the current terms, model the payment schedule against the real economics of the job and keep proper records of scope, variations, progress and payment requests.
Sources and further reading
- UK Government — Government steps in to protect families from cowboy builders and aggressive bailiffs, 28 August 2026.
- Trusted Payments — How it works.
- Trusted Payments — Terms and Conditions Version 2.8, issued 26 September 2026.
- Trusted Payments — Resolution Access & Process Guide Version 1.1, issued 26 September 2026.
- Federation of Master Builders — Government plans to tackle rogue traders: what builders need to know.
- Trusted Payments — What deposit should I pay a builder?.
Source review completed 26 October 2026. Trusted Payments states that its terms and charges may change, so readers should check the current contractual documents before relying on a specific fee, payment limit or process.
