Procurement thresholds checker: Procurement Act 2023 thresholds for 2026
Enter a contract value. See instantly whether it's above or below threshold, which rules apply, which notices the buyer must publish and where to find it.
Figures in force from 1 January 2026 VAT handled for you Runs in your browser
Whole life, including extensions and options. Not the annual value.
We add 20% VAT: thresholds are VAT-inclusive, so £180,000 counts as £216,000.
Try an example
Above threshold: full Procurement Act rules
This is a public contract. The buyer must run a competitive flexible or open procedure (or use a framework or justified direct award).
- Value inc VAT
- £216,000
- Threshold
- £207,720
Where your contract sits (log scale, inc VAT)
Notices to watch for
What the buyer must do
- Assessment summaries go to every bidder when the award is announced, explaining scores against each criterion.
- The buyer must check the debarment list and consider exclusion grounds for every supplier.
- Mandatory 8 working day standstill before signing (not required for some light touch and direct awards).
- Invoices must be paid within 30 days, and this flows down the supply chain.
Where to find it
Found a local authority / other public body tender worth bidding for?
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Thresholds in force from 1 January 2026. Guidance, not legal advice. The buyer's own value estimate decides which rules apply.
The figures
Procurement Act 2023 thresholds from 1 January 2026
All figures include VAT and apply to procurements started on or after 1 January 2026, set by the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025. Concession contracts use £5,193,000 for every buyer.
| Buyer | Goods & services | Works | Light touch |
|---|---|---|---|
| Central government | £135,018 | £5,193,000 | £663,540 |
| Sub-central (councils, NHS trusts, schools) | £207,720 | £5,193,000 | £663,540 |
| Utilities | £415,440 | £5,193,000 | £884,720 |
| Defence and security | £415,440 | £5,193,000 | £663,540 |
Below-threshold notice levels: £12,000 for central government and £30,000 for other contracting authorities. The previous (2024) goods and services figures were £139,688 and £214,904.
How it works
Three questions decide the rules.
1. What is the whole-life value? Buyers must estimate the total value over the full term, including extensions, options and VAT. A three-year cleaning contract at £60,000 a year with a one-year extension is £240,000 before VAT, or £288,000 with it. Splitting a requirement to dodge a threshold is not allowed.
2. Who is buying, and what? Central government has the lowest goods and services threshold. Councils, NHS trusts, schools and housing bodies use the sub-central figure. Works and concessions share one high figure. Light touch services such as social care have their own.
3. Which nation? England, Wales and Northern Ireland run under the Procurement Act 2023, in force since 24 February 2025. Scotland keeps its own regulations and adds lower thresholds for “regulated procurements”.
Worked example
A council security contract
- Quote: £45,000 a year ex VAT, two years plus a one-year option.
- Whole life: £45,000 × 3 = £135,000 ex VAT.
- With VAT: £135,000 × 1.2 = £162,000.
- Threshold: sub-central services, £207,720.
- Result: below threshold, but above the £30,000 notice level. If advertised, it must appear on Find a Tender and there can be no SQ shortlisting stage.
Add a fourth year and it becomes £216,000 inc VAT: above threshold, with a full tender, assessment summaries and an 8 working day standstill.
What changes for suppliers
Above or below: how to read the result
Above threshold means a formal competition. You'll register on the Central Digital Platform, answer exclusion and conditions of participation questions, and write quality answers scored against published criteria. When the award is made you get an assessment summary showing how you scored against the winner. Contracts over £5,000,000 also carry at least three published KPIs.
Below threshold is where most SMEs win their first public contracts. Processes are lighter, but buyers above the notice level must still publish and can't make you pass a pre-qualification stage. That makes these contracts easier to enter and quicker to win. Our guides to council tenders and NHS tenders explain where to look, and public sector frameworks covers the routes that bypass open tenders altogether.
Whatever the threshold, you win on quality. See live opportunities on our contracts page, then read how to win government tenders. Plans are on the pricing page.
Know the rules. Now win the tender.
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Procurement thresholds FAQs
What are the procurement thresholds for 2026?
From 1 January 2026, the Procurement Act 2023 thresholds (VAT inclusive) are £135,018 for central government goods and services, £207,720 for other public bodies such as councils and NHS trusts, £5,193,000 for works, £663,540 for light touch services and £415,440 for utilities goods and services. They apply to procurements started on or after that date and were set by SI 2025/1200.
Are Procurement Act 2023 thresholds inclusive of VAT?
Yes. Under the Procurement Act 2023, the estimated value of a contract includes VAT. That is a change from the old Public Contracts Regulations 2015, where values were calculated without VAT. A services contract worth £180,000 plus VAT is really £216,000 for threshold purposes, which puts it above the £207,720 sub-central threshold.
What happens if a contract is below the threshold?
It is a below-threshold contract, so most of the Act's procedures don't apply. But if a contracting authority advertises a contract worth £30,000 or more (£12,000 for central government), it must publish a notice on Find a Tender and cannot use a pre-qualification stage to shortlist suppliers. It must also publish a contract details notice after award. Devolved Welsh and Northern Ireland authorities are exempt from these rules.
What is the light touch regime?
Light touch covers certain services where cross-border interest is low, such as health, social care, education, and some legal and hospitality services. The threshold is higher (£663,540 for most buyers) and buyers have more freedom over procedure and timescales. In England, many NHS clinical healthcare services are bought under the separate Provider Selection Regime instead.
Is Contracts Finder still used?
Only for procurements that started under the old regulations before 24 February 2025. Every notice under the Procurement Act 2023, above or below threshold, is published on Find a Tender, which is part of the Central Digital Platform. Suppliers need to register on the platform to take part.
Do the same thresholds apply in Scotland?
Scotland uses its own regime. The Procurement Act 2023 doesn't apply to devolved Scottish authorities. The Public Contracts (Scotland) Regulations 2015 thresholds match the UK figures from 1 January 2026, and the Procurement Reform (Scotland) Act 2014 adds lower "regulated procurement" thresholds of £50,000 for goods and services and £2,000,000 for works, calculated without VAT. Scottish contracts are advertised on Public Contracts Scotland.
How often do procurement thresholds change?
Every two years, to reflect currency movements under the WTO Government Procurement Agreement. The 1 January 2026 update lowered most figures slightly. Light touch figures stayed the same. The next revision is expected on 1 January 2028.
How should a supplier use procurement thresholds?
Use them to predict how a buyer will run the competition. Above threshold, expect a tender notice on Find a Tender, a formal assessment and an assessment summary explaining your scores. Below threshold, expect quicker quote-based processes, often found through buyer portals or tender alerts. Either way, the quality answers decide who wins.
Sources (checked September 2026)
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