The Procurement Act 2023 (Commencement No. 4) Regulations 2025

Published: Mon 15th Dec 25

These Regulations, made by the Minister for the Cabinet Office with the consent of the Welsh Ministers, exercise powers under the Procurement Act 2023 to bring specified provisions of that Act into force across England, Wales, Scotland, and Northern Ireland on set dates in 2026.

Specifically, sections concerning payments compliance notices (Section 69) and contract performance assessment (Section 71) come into force for most procurements on January 1st, 2026, while Section 69 (for Welsh-regulated procurements) and Section 70 (information about payments) commence on April 1st, 2026, with mechanisms defined to differentiate between procurements regulated by the UK government and those regulated by the Welsh Ministers.

Arguments For

Provides clarity and certainty for public sector bodies and suppliers by setting fixed commencement dates for key elements of the new procurement legislation.
Ensures a staged implementation of the Procurement Act 2023, allowing government departments and contracting authorities appropriate time to prepare for new requirements regarding payment compliance and contract performance assessment.
Addresses the specific devolved powers by differentiating the commencement timing for provisions regulated by the Welsh Ministers, respecting the principle of devolution.

Arguments Against

Imposes new compliance burdens on contracting authorities and suppliers related to payment information publication and contract performance assessment starting in 2026.
The staggered commencement introduces complexity, requiring contracting authorities to manage concurrent obligations under both the old and new regimes depending on the regulated procurement type until all sections are in force.
The precise definition of a procurement "regulated by the Welsh Ministers" introduces administrative complexity for bodies operating across devolved boundaries.

The Minister for the Cabinet Office makes these Regulations in exercise of the powers conferred by section 127(2) of the Procurement Act 2023

. These Regulations are made with the consent of the Welsh Ministers in accordance with section 127(3) of the Procurement Act 2023.

The Minister for the Cabinet Office created these Regulations using powers granted under Section 127(2) of the Procurement Act 2023.

The Welsh Ministers also gave their consent, as required by Section 127(3) of the same Act.

Citation and extent1.

(1)

These Regulations may be cited as the Procurement Act 2023 (Commencement No. 4) Regulations 2025.

(2)

These Regulations extend to England and Wales, Scotland and Northern Ireland.

The official short title for these legal rules is the Procurement Act 2023 (Commencement No. 4) Regulations 2025.

These rules apply across all parts of the United Kingdom, specifically covering England, Wales, Scotland, and Northern Ireland.

Provisions coming into force2.

(1)

The following provisions of the Procurement Act 2023 come into force on 1st January 2026, to the extent that they apply to public contracts awarded in accordance with the Procurement Act 2023—

(a)

section 69 (payments compliance notices) other than in respect of a procurement regulated by the Welsh Ministers;

(b)

section 71 (assessment of contract performance).

Certain provisions of the Procurement Act 2023 become active for public contracts awarded under that Act starting on January 1st, 2026.

This includes Section 69, which deals with notices requiring compliance regarding payments, unless the procurement falls under the jurisdiction of the Welsh Ministers.

Section 71, concerning the evaluation of how well a contract has been performed, also starts on this date for all covered contracts.

(2)

The following provisions of the Procurement Act 2023 come into force on 1st April 2026, to the extent that they apply to public contracts awarded in accordance with the Procurement Act 2023—

(a)

section 69 in respect of a procurement regulated by the Welsh Ministers;

(b)

section 70 (information about payments under public contracts) other than in respect of a procurement regulated by the Welsh Ministers.

Other provisions from the Procurement Act 2023 take effect later, on April 1st, 2026, for contracts governed by the Act.

This later date specifically covers Section 69 for procurements under Welsh Ministers' regulation.

It also covers Section 70, which mandates the publication of details regarding payments made under public contracts, but excludes those procurements regulated by the Welsh Ministers.

(3)

For the purposes of this regulation a procurement is “a procurement regulated by the Welsh Ministers” if—

(a)

the contracting authority concerned is a devolved Welsh authority, unless it is a procurement under a reserved procurement arrangement or a transferred Northern Ireland procurement arrangement, or

(b)

it is a procurement under a devolved Welsh procurement arrangement.

This part defines precisely what constitutes a "procurement regulated by the Welsh Ministers" for the purpose of commencement timings.

This applies if the organization awarding the contract is a devolved Welsh authority, except in cases managed under reserved procurement arrangements or specific Northern Ireland arrangements.

It also applies if the procurement falls under any devolved Welsh procurement arrangement.

Chris Ward

Parliamentary Secretary

Cabinet Office

9th December 2025

The document was formally signed by Chris Ward, acting as Parliamentary Secretary for the Cabinet Office, on December 9th, 2025.

Explanatory Note

(This note is not part of the Regulations)

These Regulations bring into force provisions of the Procurement Act 2023 (c. 54).

Regulation 2(1) commences section 69 (which relates to the publication of payments compliance notices), other than in respect of procurement regulated by the Welsh Ministers, and section 71 (which relates to the assessment of contract performance), from 1st January 2026.

Regulation 2(2) commences section 69, in respect of procurement regulated by the Welsh Ministers, and section 70 (which relates to the publication of information about payments under public contracts), other than in respect of procurement regulated by the Welsh Ministers, from 1st April 2026.

These are the fourth commencement regulations under the Act.

The Explanatory Note, which is not legally part of the Regulations, clarifies that these statutory instruments put parts of the 2023 Procurement Act into effect.

Regulation 2(1) activates Section 69 (payments compliance notices, excluding Welsh-regulated ones) and Section 71 (contract performance assessment) from January 1st, 2026.

Regulation 2(2) activates Section 69 (for Welsh-regulated procurements) and Section 70 (information about payments, excluding Welsh-regulated ones) from April 1st, 2026.

These are identified as the fourth set of commencement regulations issued for the Act.

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