Under the 2023 Procurement Act, contract thresholds have been set to help public sector buyers determine when various notices need to be published and procedures need to be followed.
This article breaks down what the current contract thresholds are, how to interpret them, and why they're so important to public sector buyers and suppliers.
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This article is part of a series of articles on the 2023 Procurement Act.
Head to Tussell's Procurement Act Hub for all the information and resources you need to get Procurement Act-ready.
Contract thresholds refer to a set of predefined monetary limits and fixed criteria that dictate how and whether public sector contracting authorities must publish various procurement notices.
Contract thresholds have existed in the UK for decades but have been brought into sharp new focus with the introduction of the 2023 Procurement Act, which aims to increase transparency in public procurement.
The current contract thresholds, effective from January 2024, are listed below.
These thresholds vary by contract type and buyer type, and are likely to be be next updated in January 2026.
When assessing whether a contract is above or below threshold, procurement teams must estimate the contract value, considering the full contract lifecycle, any potential extensions, and include VAT.
|
Buyer Type |
Contract Type |
Threshold (incl. VAT) |
|
Central Gov't, NHS |
Services & supplies |
£139,688 |
|
Non Central Gov't Authorities |
Services & supplies |
£214,904 |
|
Any |
Works |
£5,372,609 |
|
Any |
Utilities - services & supplies |
£5,372,609 |
|
Any |
Utilities - works |
£5,372,609 |
|
Any |
Utilities - light touch |
£884,720 |
|
Any |
Security & defence - works |
£5,372,609 |
|
Any |
Security & defence - concession |
£5,372,609 |
|
Any |
Security & defence - services & supplies |
£429,809 |
|
Any |
Concession - works and services |
£5,372,609 |
|
Any |
Concession - light touch |
£5,372,609 |
|
Any |
Light touch - services & supplies |
£663,540 |
Works contracts - Refers to activities within the 45000000 CPV codes, where the primary purpose is to execute works or facilitate their execution.
Light touch contracts - May include contracts under specific health and social care CPV codes.
Security & defence contracts - Includes contracts for military equipment, sensitive equipment, and other defence-related goods, services, and works.
Utilities contracts - Definitions vary for electricity, water, and gas. Access specific definitions here.
Below-threshold contracts are subject to fewer obligations than above-threshold contracts.
For below-threshold procurements, tender notices and contract details notices are typically the only compulsory publications—and even these may not apply for very low value procurements below a specific limit.
Learn more about when and where tender & contract notices are published.
Of the new rules, regulations and notice types included in the Procurement Act, many only apply to above threshold contracts.
Below-threshold contracts are exempt from numerous requirements including:
For a complete list of publication rules for most below-threshold contracts, consult Part 6 of the Procurement Act.
Or, download our Procurement Act Notices Flowchart - made in Partnership with leading law firm Mills & Reeve - for an easy way to know what to publish when.
Download your copy of the Procurement Act Notices Flowchart
For some larger suppliers not involved in the works, utilities, defence or health and social care sectors, below threshold contracts may come up less frequently.
However, smaller suppliers and those targeting these sectors will find that contract thresholds may impact their access to some information about their market.
When you can't get access to Contract Performance Notices to understand incumbent contracts you need to get more creative.
That's why successful public sector sales, bidding and marketing teams use Tussell to understand their target accounts, competitors and the public sector marketplace inside out.
Book a call with the Tussell team to make 2025 your best year yet for public sector sales.
The 2023 Procurement Act introduces 13 new notice types.
As a result, procurement teams' administrative workload will almost certainly increase.
So, now more than ever, understanding which contracts fall below the threshold (and are therefore exempt from most publishing rules) is essential.
Tussell is used by leading Local Government, Central Government and NHS procurement professionals across the country to simplify procurement, bolster social value, and generate better deals from suppliers.
Book a call with the Tussell team to learn how you can save time and money with Tussell.
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This article is part of a series of articles on the 2023 Procurement Act.
Head to Tussell's Procurement Act Hub for all the information and resources you need to get Procurement Act ready.
Please do not consider the contents of this article as legal advice.