Does the Procurement Act 2023 apply to us?
Plain-language steps through contracting authority types, thresholds and exemptions, with links to the official guidance.
This is a guide, not legal advice. The Procurement Act 2023 has many exceptions and your circumstances matter. Use the result to frame the question for your legal or procurement adviser, who decides what applies to each contract.
The Procurement Act 2023 came into force on 24 February 2025. It sets the rules for how contracting authorities in England, Wales and Northern Ireland buy goods, services and works. Answer the questions below to see whether it is likely to apply to your organisation and to a particular contract. Nothing you choose leaves your browser.
The thresholds
From 1 January 2026, including VAT (set by the Procurement Policy Note 023 on 2026 threshold amounts). Contracts at or above these values are covered by the Act's full rules.
| Contract | Central government (including NHS trusts) | Other contracting authorities | Utilities contracts |
|---|---|---|---|
| Goods and services | £135,018 | £207,720 | £415,440 |
| Works | £5,193,000 | £5,193,000 | £5,193,000 |
| Light-touch services | £663,540 | £663,540 | £884,720 |
Below those values, some contracts still have duties. A notifiable below-threshold contract is one worth £12,000 or more (central government) or £30,000 or more (other contracting authorities, and all devolved Welsh authorities), including VAT. If you advertise it, you publish a tender notice, and once it's awarded you publish a contract details notice. These below-threshold duties don't apply to procurement by schools, according to the government's below-threshold guidance. Defence and security contracts and concession contracts have their own thresholds.
What applies above the threshold
For a covered contract, the main duties include publishing notices on the Central Digital Platform at each stage (tender, award, contract details, changes and termination), following one of the Act's procedures or a permitted direct award, observing a standstill period before most awards, setting and publishing at least three KPIs on contracts worth more than £5 million and assessing them, and paying suppliers on time (30-day payment terms are written into public contracts). Our help article on the Procurement Act 2023 in SupplierVault lists the duties SupplierVault tracks.
Exempted contracts
Schedule 2 of the Act lists contracts that are exempt, including some arrangements with bodies you control or with other public authorities, buying or renting existing land, employment contracts, certain legal and financial services and some research and development. Each exemption has conditions. See the government guidance on exempted contracts.
Sources
- Guidance: contracting authority definition (GOV.UK)
- The Procurement Act 2023: a short guide for senior leaders (GOV.UK)
- PPN 023: 2026 threshold amounts (GOV.UK, PDF)
- Guidance: below-threshold contracts (GOV.UK, PDF)
- Procurement Act 2023 (legislation.gov.uk)
- Welsh Procurement Policy Note 017: new thresholds (GOV.WALES), for devolved Welsh authorities
SupplierVault tracks the Act's duties for each contract. Switch on the Procurement Act 2023 module and each supplier gets a checklist of the notices, deadlines and KPIs for its contract, by threshold, and the payment reports you publish are built for you. Your adviser still decides what applies.