Procurement thresholds are the contract values above which UK public bodies are legally required to advertise contracts openly and run a competitive procurement process. Contracts below the threshold can be awarded without a full tender process, though many buyers choose to advertise smaller contracts anyway.
Thresholds were previously set by EU directives. Since Brexit, they are maintained by the UK government and reviewed every two years in line with World Trade Organisation (WTO) Government Procurement Agreement (GPA) revisions.
The thresholds below apply from 1 January 2024 and are expressed excluding VAT. They were updated following the Procurement Act 2023.
| Contract type | Central government | Other public bodies |
|---|---|---|
| Goods and services | £139,688 | £214,904 |
| Works (construction) | £5,372,609 | £5,372,609 |
| Light touch services (social, health, education) | £663,540 | £663,540 |
| Concession contracts | £5,372,609 | £5,372,609 |
Central government bodies include most ministerial departments and their agencies. Other public bodies include councils, NHS trusts, universities, and housing associations.
Below-threshold contracts do not need to be advertised on Find a Tender. However, most public bodies still follow good practice guidelines, which often include:
This means there is a large volume of below-threshold work that is never formally advertised but can be accessed through supplier lists and procurement portals.
The Procurement Act 2023 replaced the previous EU-derived regulations with a new UK-specific framework. Key changes for suppliers include:
Knowing the thresholds helps you understand where to look for contracts. Above-threshold contracts must appear on Find a Tender. Below-threshold contracts often appear on Contracts Finder, procurement portals, and sector-specific platforms. TenderSignal aggregates across all these sources so you see the full picture in one place. Browse open tenders or set up a keyword alert to get started.
No. The procurement thresholds are applied to the estimated contract value excluding VAT.
If a contracting authority awards a contract above the threshold without following the correct procurement procedure, suppliers can challenge the award through the courts. The court can suspend the contract, require the procedure to be rerun, or award damages.
Buyers must estimate the total value of the contract over its full term, including any extension options. A 2-year contract with a 1-year extension option would be valued over 3 years.
Yes. Utilities covering water, energy, transport, and postal services are subject to a separate utilities procurement regime with slightly higher thresholds than those for central government.
The Procurement Act 2023 replaced four separate sets of regulations with a single unified framework. It introduced new transparency requirements, a new open framework mechanism, and simplified rules for below-threshold contracts.
Yes. The value of a framework agreement is estimated based on the maximum estimated spend across all call-offs over its lifetime. Above-threshold frameworks must be advertised on Find a Tender.