Procurement Act thresholds and key dates for 2026
We have compiled a handy checklist of procurement thresholds and key dates for universities in England and Wales who apply the Procurement Act as contracting authorities.
Thresholds
New lower thresholds apply to procurements commencing on or after 1 January 2026. The 2024/25 thresholds remain in force for procurements commenced up until 31 December 2025.
Thresholds are reviewed every two years to account for currency fluctuations and to maintain compliance with the World Trade Organisation's Government Procurement Agreement (GPA). The thresholds have decreased slightly, except for light touch services which remain unchanged. As a result of the changes, more procurements are likely to fall within the scope of the Procurement Act.
Notes:
Since 2022 the value of procurements must be calculated inclusive of VAT, where applicable.
Healthcare services are subject to a separate procurement regime under the Provider Selection Regime, which applies irrespective of the value of the procurement.
Table of Thresholds
|
Thresholds 2026/27 (incl. VAT) (indicative value excl. 20% VAT) |
Thresholds 2024/25 (incl. VAT) |
|
| Supply and services contracts |
£207,720 Indicative value excl. VAT £173,100 |
£214,904
|
| Light touch regime (education and social services) |
£663,540 Indicative value excl. VAT £552,950 |
£663,540
|
| Works contracts (all) |
£5,193,000 Indicative value excl. VAT £4,327,500 |
£5,372,609
|
| Works or services concession contracts (all) |
£5,193,000 Indicative value excl. VAT £4,327,500 |
£5,372,609
|
Key Dates
| 1 January 2026 | Contract performance notices - universities are required to publish at least annually a notice rating a supplier’s performance against KPIs. In England, the obligation comes into force in January. |
| 1 April 2026 | In Wales the commencement date for contract performance notices is delayed until 1 April. |
| 26 May 2026 | Pipeline notices for contracts over £2 million, where applicable, should be published. |
| 30 April 2026 | Payment compliance notices setting out details of a university’s average payment times for invoices come into force. In England, universities must publish notices for the six months up until 31 March. |
| 30 October 2026 | Second reporting deadline for payment compliance notices in England in respect of the period 1 April - 30 September. In Wales, the first payment compliance notice is required to be published in respect of the period 1 April - 30 September. |
If you have any questions about the thresholds or notices or how they might apply to you, please contact Stephanie Rickard in our Procurement team.
Get in touch today
Are you looking for legal services?
Fill out our form to find out how our specialist lawyers can help you.