Updated thresholds for public procurements to be applied from 1 January 2026
The financial thresholds for the application of the Procurement Act 2023 for English contracting authorities will change from 1 January 2026. The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 set out the position.
The threshold amounts of most thresholds will be decreased slightly, meaning that more contracts will be caught. The exception is the Light Touch Regime, which remains unchanged. Please also note the below threshold requirements in the Procurement Act 2023, and the rules around convertible contracts.
The threshold amounts are inclusive of VAT.
The thresholds that will apply from 1 January 2026 are as follows:
| Type of contracting authority | Type of contract | Current threshold (inclusive of VAT) | Threshold that will apply from 1 January 2026 (inclusive of VAT) |
| Central Government Authorities | Service contracts Supply of Goods contracts |
£139,688 | £135,018 |
| Sub-Central Authorities | Service contracts Supply of Goods contracts |
£214,904 | £207,720 |
| All | Works and Concessions | £5,372,609 | £5,193,000 |
| All | Light Touch Regime | £663,540 | £663,540 |
The Regulations’ transitional provisions confirm that these changes do not affect any procurements commenced before 1 January 2026.
As there is no threshold for the application of the Health Care Service (Provider Selection Regime) 2023, there is no change in the position for relevant authorities procuring relevant healthcare services.
Contact us
Hempsons’ specialist procurement team can advise you on the issues raised within this article, or any other procurement issues.