Public procurement thresholds are the contract values above which a public body in the UK must follow the full regulated procurement process. They decide which rules apply to a contract, where it must be advertised, and how the competition is run. This guide sets out the current figures, which apply from 1 January 2026 to 31 December 2027, and what they mean for suppliers.
Current UK procurement thresholds (2026 and 2027)
These are the thresholds under the Procurement Act 2023 for procurements that start on or after 1 January 2026. They include VAT.
| Type of contract | Threshold (including VAT) |
|---|---|
| Goods and services, central government authorities | £135,018 |
| Goods and services, other (sub-central) authorities | £207,720 |
| Works contracts | £5,193,000 |
| Concession contracts | £5,193,000 |
| Light touch contracts (for example health, social care and education services) | £663,540 |
| Light touch concession contracts | £5,372,609 |
| Utilities: goods and services | £415,440 |
| Utilities: works | £5,193,000 |
| Utilities: light touch contracts | £884,720 |
| Defence and security: goods and services | £415,440 |
| Defence and security: works and concessions | £5,193,000 |
Source: GOV.UK, Procurement Policy Note 023 (2026 threshold amounts) and the Procurement Act 2023 thresholds guidance. Always check the current figures on GOV.UK before relying on them for a bid decision.
Central government authorities include government departments and the other bodies listed in the Procurement Regulations 2024. Councils, NHS bodies, universities, police and most other public bodies fall under the sub-central figure.
How thresholds are set
Thresholds are revised every two years to reflect currency movements and the UK's obligations under the World Trade Organization's Government Procurement Agreement. Several of the 2026 figures are slightly lower than the 2024 ones they replaced: the central government goods and services threshold fell from £139,688 to £135,018, for example, and works from £5,372,609 to £5,193,000.
A procurement keeps the thresholds that applied when it started. A procurement counts as started once its tender notice, transparency notice or below-threshold tender notice is published, so anything started before 1 January 2026 carries on under the old figures.
How a contract's value is worked out
Buyers compare the estimated total value of the contract, including VAT, with the threshold. That means its value over the full term, including any options to extend or renew. A three-year contract worth £60,000 a year, with a one-year extension option, has an estimated value of £240,000.
Buyers cannot split a requirement into smaller contracts to keep each one under a threshold and avoid the rules.
Above threshold: what changes
When a contract is at or above the relevant threshold, the full rules of the Procurement Act 2023 apply. In practice that means:
- a tender notice published on the Central Digital Platform, which suppliers access through Find a Tender;
- a competitive procedure, either the open procedure or the competitive flexible procedure, unless a direct award is justified;
- award criteria and their relative importance set out in advance;
- a contract award notice and a standstill period before the contract is signed, giving unsuccessful bidders time to challenge;
- a contract details notice once the contract is in place.
Above-threshold competitions take more work to bid for, so it pays to spot them early, from pipeline and planned procurement notices where buyers publish them. Our Procurement Act 2023 summary covers these notices and procedures.
Below threshold: lighter rules, still transparent
Contracts under the thresholds have lighter but still national rules. A below-threshold contract becomes notifiable when its value is:
- £12,000 or more (including VAT) for central government authorities, or
- £30,000 or more (including VAT) for other contracting authorities.
If a buyer invites competitive tenders for a notifiable contract, it must publish a below-threshold tender notice on the Central Digital Platform first, and then a contract details notice after it awards the contract.
For regulated below-threshold contracts, buyers cannot shortlist by assessing suppliers' suitability first, so there is no pre-qualification stage. They can still consider suitability when they award. The exception is larger works contracts, above £135,018 for central government or £207,720 for other authorities, where a suitability stage is allowed.
Below-threshold opportunities are usually quicker to respond to and more accessible for smaller suppliers. There is no mandatory standstill period, and buyers often use simpler quotation processes. Many SMEs build their track record here before bidding above threshold.
Light touch contracts
Some services, including health, social care, education and certain other services delivered to people, are light touch contracts. Their threshold is much higher, at £663,540, and buyers have more freedom to design a process that suits the service. If you work in care, training or community services, this is the regime most likely to apply to your bids.
Scotland, Wales and Northern Ireland
- England, Wales and Northern Ireland follow the Procurement Act 2023 and the thresholds above. Welsh bodies also advertise on Sell2Wales, and Northern Ireland bodies on eTendersNI.
- Scotland has its own procurement rules. Scottish public bodies apply their own international thresholds, and lower national thresholds for "regulated procurements" of £50,000 for goods and services and £2 million for works. Opportunities are published on Public Contracts Scotland.
Why thresholds matter for your pipeline
Thresholds tell you what kind of process to expect. A below-threshold council contract might need a short quotation within a couple of weeks. An above-threshold central government competition can run for months and may need partners to compete. Both can be worth pursuing, but they need different time and resource. Matching your targets to your capacity, and building evidence on smaller contracts first, is the most reliable way to grow a public sector pipeline.
Find opportunities above and below threshold
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