ONE of the UK's largest forestry groups has defended its 'controversial' decision to change its payment system. 

Tilhill has confirmed it will bring its method in line with that of parent company BSW Group from August, meaning invoices filed on the first of that month won't be paid until October 5. Currently, contractors are paid on a fortnightly, self-billing basis. 

It's a move that has been branded as "cruel" by the Forestry Contracting Association (FCA), which says workers are already struggling to cope with the impact of rising prices and the cost of living crisis. 

READ MORE: Contractors face 'cruel' 10-week wait for payment under new Tilhill system

But Tilhill has defended the change and the firm's full response to Forestry Journal can be read below. 

A Tilhill statement read: "The BSW Group routinely reviews the payment terms of both its supplier and customer base and has taken the decision to bring supplier and customer terms in line with one standard across all the group’s businesses.

"For Tilhill, the change in our payment terms from August 1 affects a small number of our larger suppliers who have previously enjoyed favourable terms. These contractors have been moved over to our standard business terms.

"A consultation period took place before this change was announced and we have taken steps to inform those affected prior to the payment term change taking effect. 

"This process has enabled Tilhill the opportunity to continue to offer a portion of our smaller contractors extra support by enabling them to continue to benefit from our offering of quicker payment terms.  

"We understand this change could have impacts for the small group of contractors affected by the change in terms and we are willing to work to smooth this process on an individual basis should the necessity arise.

"Tilhill values the contribution our contractors bring to our business. Our payment system remains one of the most reliable and stable in the forest industry. Our standard terms are also robust and are proven favourable within the industry."