Procurement in a Nutshell – Procurement thresholds changing from 2026
5th December, 2025
From 1 January 2026, the procurement thresholds are changing when The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 will come into force.
These changes are significant because they determine whether or not your contract falls under the Procurement Act 2023. It is notable that most of these thresholds have decreased, this means more contracts will now be covered by the PA 2023.
Why is this change necessary?
The thresholds are revised every two years to keep in line with inflation and currency fluctuations. It also ensures that the UK complies with its obligations under the World Trade Organisation’s Agreement on Government Procurement (GPA).
New procurement thresholds
| Contract type | Old Threshold | New Threshold |
| Works contracts (general) | £5,372,609 | £5,193,000 |
| Defence/security works | £5,372,609 | £5,193,000 |
| Defence/security (other than works) | £429,809 | £415,440 |
| Utilities works | £5,372,609 | £5,193,000 |
| Utilities light touch | £884,720 | £884,720 |
| Utilities (other than works and light touch) | £429,809 | £415,440 |
| Light-touch concession | £5,372,609 | £5,372,609 |
| Light touch (other than concession) | £663,540 | £663,540 |
| Concession contracts | £5,372,609 | £5,193,000 |
| Central government goods/services | £139,688 | £135,018 |
| Sub-central government goods/services | £214,904 | £207,720 |
For further information please contact Melanie Pears or Tim Care in our Public Sector team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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