UK supplier guide
Procurement thresholds 2026:
Procurement Act values
Procurement thresholds decide whether a contract is a covered procurement under the full Procurement Act 2023. From 1 January 2026 they are £135,018 for goods and services bought by central government, £207,720 for other contracting authorities and £5,193,000 for works, including VAT.
Search tenders above and below threshold →Checked against primary sources5 sources linked below
- Read the estimated value
- Name the buyer type
- Name the contract type
- Compare with Schedule 1
£135,018 and £207,720
Goods and services: central government, then other authorities.
What are the procurement thresholds for 2026?
Twelve values in Schedule 1 to the Procurement Act 2023, in force from 1 January 2026 to 31 December 2027.
| Row | Type of contract | Threshold, VAT included |
|---|---|---|
| 11 | Goods, services or works for a central government authority (not in another row) | £135,018 |
| 12 | Goods, services or works for a sub-central authority (not in another row) | £207,720 |
| 10 | Works contract | £5,193,000 |
| 8 | Light touch contract | £663,540 |
| 9 | Concession contract | £5,193,000 |
| 7 | Light touch concession contract | £5,372,609 |
| 6 | Utilities contract | £415,440 |
| 4 | Utilities works contract | £5,193,000 |
| 5 | Utilities light touch contract | £884,720 |
| 3 | Defence and security contract | £415,440 |
| 1 | Defence and security works contract | £5,193,000 |
| 2 | Defence and security concession contract | £5,193,000 |
Which rules apply to the contract in front of you?
Enter the buyer, the kind of contract and its estimated value to see whether it is covered or below threshold, and which sections protect you.
- From £30,000 the contract is notifiable: if the buyer advertises it, a below-threshold tender notice comes first, and its time limits must be reasonable and the same for everyone.Procurement Act 2023 s.87
- If tenders are invited, the buyer may not shortlist on suitability — no pre-qualification on financial standing or technical ability.Procurement Act 2023 s.85(1)
- Before inviting tenders, the buyer must have regard to the barriers small businesses face and consider reducing them.Procurement Act 2023 s.86
- Invoices are payable within 30 days — a term implied into every regulated below-threshold contract.Procurement Act 2023 s.88
Not modelled: utilities, defence and security, concessions, schools, and Welsh devolved authorities, where different amounts or exemptions apply. The estimated value is the most the buyer could expect to pay, options and extensions included (Schedule 3); thresholds from Schedule 1 as amended from 1 January 2026. A guide to the Act, not legal advice.
How do you tell which rules a contract falls under?
Compare its estimated value, including VAT, with the threshold for its buyer and type.
- Start with the source01
Read the estimated value
Including VAT, options and extensions. - Define the scope02
Name the buyer type
Central government authority or sub-central. - Read the evidence03
Name the contract type
Goods and services, works, light touch, utilities, defence or concession. - Make the decision04
Compare with Schedule 1
At or above means a covered procurement under the full Act. - Name the next action05
Below it, read Part 6
Notices from £12,000 or £30,000 and no suitability shortlisting.
A supplier’s review sequence, based on the primary sources below. It is not a measured outcome or a prescribed buyer timetable.
What happens below the thresholds?
Part 6 still applies: notices from £12,000 or £30,000, no suitability shortlisting, and 30-day payment.
| Value | Central government authority | Other contracting authority |
|---|---|---|
| Below-threshold tender notice and contract details notice (notifiable contracts) | From £12,000 (s.87(4)) | From £30,000 (s.87(4)) |
| Works contracts that may be shortlisted on suitability | From £135,018 (s.85(3)) | From £207,720 (s.85(3)) |
How is a contract’s value measured against the threshold?
As the estimated value including VAT, against the threshold in force when the procurement commenced.
A contract’s estimated value is near a threshold
At or above the threshold
A public contract, and the full Act applies unless an exemption in Schedule 2 does (thresholds guidance, para 1).
A competitive award uses the open procedure or a competitive flexible procedure.
Below the threshold
A below-threshold contract: Part 6 applies to regulated below-threshold contracts (thresholds guidance, para 2).
Small contracts may never be advertised; alerts catch the ones that are.
When do the thresholds change again?
Every two years, on 1 January of an even year, to follow the WTO Government Procurement Agreement.
The GPA thresholds are set in Special Drawing Rights; the UK confirms their sterling value every two years, and the revised thresholds take effect on 1 January of every even year (thresholds guidance, para 7).
A procurement commenced before 1 January 2026 keeps the earlier thresholds (PPN 023, para 10).
SI 2025/1200 made
Laid before Parliament on 21 November 2025.PPN 023 published
Advance notice of the new amounts.New thresholds in force
For procurements commenced from this date.Next GPA revision
The next even-year change; amounts not yet published.
The threshold that matters is the one in force when the buyer started, applied to the value including VAT.
£135,018 and £207,720
Goods and services: central government, then other authorities.£5,193,000
Works, concessions and utilities works.VAT included
Thresholds and estimated values both include VAT.
Free search across Find a Tender and Contracts Finder, with stated values and deadlines.
What else should you know about Procurement thresholds?
Check these points before committing your team’s time.
What is the procurement threshold for local authorities in 2026?
Do procurement thresholds include VAT?
What counts as a central government authority?
Which thresholds apply to a procurement that started in 2025?
Is the light touch threshold changing?
Where can you check the evidence?
Read the primary publication and the buyer’s current documents before acting.
| Source | What it supports |
|---|---|
| Procurement Act 2023, Schedule 1 · legislation.gov.uk ↗ | Threshold amounts as amended from 1 January 2026, read 24 October 2026. |
| SI 2025/1200 · legislation.gov.uk ↗ | Made 18 November 2025, in force 1 January 2026; explanatory note on section 85(3). |
| PPN 023: 2026 Threshold Amounts · Cabinet Office ↗ | Annex A summary and the commencement rule. |
| Guidance: Thresholds · Cabinet Office ↗ | VAT, GPA revision cycle, light touch, definitions. |
| Procurement Act 2023, sections 85 and 87 ↗ | Below-threshold notices and works suitability values. |
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