The new thresholds will apply to procurements commencing on or after 1 January 2026. The current thresholds remain in force until 31 December 2025. PPN 023: 2026 Threshold Amounts.
The thresholds have decreased slightly, except for light touch services which remain unchanged. As a result of the changes, more procurements are likely to fall within the scope of the Procurement Act.
Thresholds 26/27 (incl. VAT) | Thresholds 24/25 (incl. VAT) | |
| Supply and services contracts (central government, including NHS Trusts and NHS Foundation Trusts) | £135,018 | £139,688 |
| Supply and services contracts (sub-central government: local authorities, universities, academies, emergency services) | £207,720 | £214,904 |
| Light touch regime (education and social services) | £663,540 | £663,540 |
| Supply and services contracts (utilities contracts) | £415,440 | £429,809 |
| Works contracts (all) | £5,193,000 | £5,372,609 |
| Works or services concession contracts (all) | £5,193,000 | £5,372,609 |
