Procurement Thresholds Explained for 2026 Changes

New Year, New Procurement Thresholds from January 2026

9 January 2026

Don’t forget, the procurement thresholds that apply to contracting authorities changed as of the 1st of January 2026.

The levels of expenditure above which the Procurement Act 2023 (PA23) apply for contracting authorities, based on the aggregate contract value (inclusive of VAT), are as follows:

Number	Type of contract	Procurement Threshold amount
1	Defence and security contract that is a works contract	£5,193,000
2	Defence and security contract that is a concession contract	£5,193,000
3	Defence and security contract not within row 1, 2 or 8	£415,440
4	Utilities contract that is a works contract	£5,193,000
5	Utilities contract that is a light touch contract	£884,720
6	Utilities contract not within row 3, 4 or 5	£415,440
7	Light touch contract that is a concession contract	£5,372,609
8	Light touch contract not within row 5 or 7	£663,540
9	Concession contract not within row 2, 6 or 7	£5,193,000
10	Works contract not within row 1, 4 or 9	£5,193,000
11	Contract for the supply of goods, services or works to a central government authority not within any other row	£135,018
12	Contract for the supply of goods, services or works to a sub-central government authority not within any other row	£207,720

The majority of TPPL members classify as a sub-central government authorities (e.g. local authorities, housing providers), therefore the main procurement thresholds to note are highlighted (rows 10 and 12).

For more information visit: https://www.gov.uk/government/publications/ppn-023-2026-threshold-amounts/ppn-023-2026-threshold-amounts-html

Or: https://www.legislation.gov.uk/uksi/2025/1200/made

If you want to discuss more about the change to thresholds, and what the rules of aggregation mean when estimating contract value please get in touch.