Don't get caught out! New procurement thresholds go live from 1 January 2026, Ciara Campfield

The UK has - for the first time under the Procurement Act 2023 - issued revised procurement thresholds, effective 1 January 2026.

Most thresholds are dropping (except Light Touch in England), meaning many more contracts will be pulled into the full procurement regime.

Remember: the current thresholds still apply to any procurement started on or before 31 December 2025.

And a quick reminder: contracting authorities must estimate contract value including VAT and in line with Schedule 3 of the Procurement Act 2023. That means assessing the maximum possible value - extensions, options, contingencies and additional volumes included.

What should you do now?

Small reductions can create big consequences, so act early. We recommend that you:

Reassess your pipeline – below-threshold contracts may now fall "in-scope".
Review existing contracts – upcoming modifications may now trigger “convertibility”
Update internal financial procedures – align them with the new thresholds.
Refresh templates – value calculators, notices and workflows.
Brief your teams – make sure everyone understands the changes.

If you have any questions on procurement matters, we’re here to help.

Click here to see the thresholds effective from 1 January 2026.