From 1 January 2026, the spending thresholds that decide when public sector contracts must follow the full Procurement Act 2023 (Act) rules will change.
In practical terms, some contracts that previously fell just below the old thresholds may now be brought into scope and require a fuller process. Equally, where the thresholds remain broadly similar, procuring bodies should still check the updated figures before planning a route to market.
Here’s what you need to know!
What's Changing?
The headline changes include small reductions to several thresholds that trigger the full set of procurement rules. In particular, the amounts used to decide when certain categories of procurement can be used are changing. Please see here.
When the New Thresholds Apply?
The new amounts apply to procurements that start on or after 1 January 2026. If you have already begun a process before that date, the old thresholds continue to apply to that procurement. A process is generally treated as having started if you have published a notice inviting interest or tenders, or you have contacted suppliers to begin awarding a below-threshold contract.
Wales
These changes do not apply to contracts regulated by the Welsh Government. A separate update will apply in Wales, so Welsh contracting bodies and suppliers should check the Welsh-specific figures once published.
What You Should Do Now?
- Check upcoming procurements scheduled for early 2026 and confirm which threshold will apply based on the start date.
- Revisit internal templates and guidance to make sure the updated amounts are reflected from 1 January 2026.
- For pipelines straddling year-end, decide whether to begin before or after 1 January 2026 in light of the new thresholds.
If you would like help assessing how these changes affect your pipeline or bidding plans, please contact David Mundy and Alex Madafiglio.
