UK Procurement Thresholds: A Complete Reference for Suppliers
If you supply goods, services or construction work to UK public bodies, procurement thresholds are the single most important set of numbers you need to understand. They determine which rules apply to a contract, which notice portals a buyer must use, and ultimately how easy or difficult it is for a smaller supplier to win work. This article explains what thresholds are, what the current figures look like under the Procurement Act 2023, and what the practical difference is when a contract sits above or below the line.
What Is a Procurement Threshold?
A procurement threshold is a contract value (excluding VAT) above which a contracting authority must follow the full regulated procurement process set out in law. Below the threshold, authorities still have rules to follow -- they must act transparently and treat suppliers fairly -- but the process is lighter and far less prescriptive.
The United Kingdom adopted its own threshold regime after leaving the EU. The Procurement Act 2023, which came into force on 24 February 2025, replaced the Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016 and several other instruments with a single consolidated framework. The Act introduced a new set of threshold figures, new notice types, and a revamped publication platform called Find a Tender.
Thresholds apply to the estimated total contract value over its full term, including any extensions. A three-year services contract worth £60,000 a year has an estimated value of £180,000, so the threshold calculation uses that lifetime figure, not the annual one.
Current UK Procurement Thresholds
The figures below are the thresholds in force from 1 January 2026. They are reviewed and updated every two years in line with the WTO Government Procurement Agreement, so you should always verify the current figures with the Cabinet Office or on the Find a Tender service before making a commercial decision.
| Contract type | Central government authorities | Sub-central authorities (councils, NHS, universities, housing associations, police etc.) | Utilities |
|---|---|---|---|
| Goods and services (standard) | £139,688 | £214,904 | £429,809 |
| Works (construction) | £5,372,609 | £5,372,609 | £5,372,609 |
| Light Touch / Social / Health services | £663,540 | £663,540 | £663,540 |
| Concession contracts | £5,372,609 | £5,372,609 | £5,372,609 |
Note: These figures exclude VAT. They are updated every two years in January. Always check the current figures on the Find a Tender service or with the Cabinet Office before relying on them for a bid or pipeline decision.
Central Government vs Sub-Central Authorities
One of the most practically significant distinctions in the table above is the split between central government and sub-central authorities. Central government departments and their arm's-length bodies face a lower goods and services threshold (around £140,000) than local authorities, the NHS, universities and other public bodies (around £215,000). This means a central government contract is more likely to be above-threshold and therefore subject to the full regulated process, even at relatively modest values.
Sub-central bodies account for the majority of UK public procurement spend by contract volume. Councils, NHS trusts, housing associations and universities collectively issue tens of thousands of contracts each year, and a significant proportion fall below the higher sub-central threshold. That is where SMEs find much of their best opportunity.
Above Threshold: What That Means in Practice
When a contract is expected to exceed the relevant threshold, the contracting authority must:
- Publish a tender notice on Find a Tender (the UK's replacement for the EU's OJEU/TED platform).
- Follow the specific procedural requirements of the Procurement Act 2023, including mandatory standstill periods, defined timescales for each stage, and structured evaluation criteria published in advance.
- Issue a contract award notice after the contract is awarded, and a contract details notice for transparency.
- In many cases run a formal competition such as an open procedure, a competitive flexible procedure, or a restricted procedure.
Above-threshold processes are more resource-intensive for bidders: detailed disclosure, formal tender responses and sometimes pre-qualification questionnaires are the norm. For a smaller supplier new to public procurement, the key is to track these opportunities early -- ideally at the pipeline or pre-market-engagement stage -- so you are not starting from scratch when the notice lands.
Below Threshold: A More Accessible Entry Point
Contracts below the regulated threshold still require buyers to act transparently. Under the Procurement Act 2023, contracting authorities must publish below-threshold contract opportunities on Contracts Finder if the value exceeds £12,000 (for central government) or £30,000 (for other public bodies). Smaller contracts may be awarded via framework call-offs, direct award, or quotation processes that never appear on any national portal.
Below-threshold procurement is generally:
- Faster. There is no mandatory standstill period and timescales are set by the buyer rather than law.
- More flexible. Buyers can negotiate, refine specifications, and award on the basis of a short quote rather than a full tender submission.
- More SME-friendly. Large, complex documentation requirements are less common. Buyers are more likely to accept limited company history or references from the private sector.
- Less visible to competitors. Not every below-threshold opportunity reaches the major portals, so suppliers who monitor buyer websites directly or build relationships with procurement teams can find work that their rivals never see.
For most SMEs entering public procurement for the first time, below-threshold contracts are the sensible starting point. Winning a handful of smaller contracts builds the case studies, financial references and processes needed to compete successfully above threshold later.
The Light Touch Regime
Certain service categories are treated differently under UK procurement law. Health, social care, education, certain legal services and a small number of other categories are subject to the Light Touch Regime (LTR). The rationale is that these services are predominantly delivered locally, often by specialist providers, and the full regulated process is disproportionate given the nature of the work.
Under the LTR, the threshold is significantly higher at around £663,000. Above that figure, authorities must advertise and run a transparent process, but the specific procedural requirements are lighter than the standard regulated route. Authorities have more freedom to design a process suited to the nature of the service, including direct engagement with providers, market assessments, and flexible award criteria.
If your business operates in health and social care, community support, youth services or certain training and education sectors, the LTR is the regime most likely to apply to your bids. Understanding the flexibility it gives buyers shapes how you should engage, position and price your offer.
Utilities: Higher Thresholds, Different Rules
Utilities -- water, energy, transport and postal services -- operate under a separate part of the Procurement Act 2023. Their thresholds are substantially higher, reflecting the commercial nature of these organisations and the complex, long-term contracts they typically procure. The goods and services threshold for utilities is around £430,000, roughly three times the central government figure. Works remain aligned across all sectors at around £5.4 million. Many large utilities also run their own pre-qualification schemes, so achieving approved-supplier status can generate a steady flow of call-off work.
Why This Matters for Your Pipeline Strategy
Understanding thresholds helps you prioritise business development activity. A below-threshold opportunity with a local council might take two weeks to respond to and carry a realistic win probability for a business with local relationships. An above-threshold central government procurement might run for nine months and require consortium partners to be competitive. Both can be worth pursuing, but they need different resource commitments and timelines. The most effective suppliers build a track record of smaller wins first, then use that evidence base to compete at higher values.
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