These Regulations may be cited as the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 and come into force on 1st January 2026.
The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025
Published: Fri 21st Nov 25
These Regulations, issued by the Minister for the Cabinet Office with the consent of the Department of Finance for Northern Ireland, update specific financial threshold amounts within the Procurement Act 2023, effective from January 1, 2026.
The primary goal is to ensure the UK's public procurement rules, particularly those governed by the GPA, align with current international standards, while also correcting an inconsistency in below-threshold contract procedures and detailing specific threshold columns related to contracts regulated by the Welsh Ministers.
Arguments For
Updating the financial thresholds ensures compliance with the World Trade Organisation’s Agreement on Government Procurement (GPA), maintaining international trade consistency.
Amending thresholds for below-threshold contracts (Section 85(3)) corrects an oversight from previous updates (S.I. 2025/163), ensuring procedural consistency within the Procurement Act 2023.
Adjusting the value thresholds in Schedule 1 aligns the public contract regulation framework with current economic values and GPA requirements, ensuring appropriate oversight levels for different contract types.
Establishing a clear distinction for contracts regulated by Welsh Ministers through a dedicated column ensures clarity regarding devolved procurement responsibilities.
Arguments Against
Changes in financial thresholds might alter which procurements are subject to fuller regulatory procedures, potentially increasing administrative burden for lower-value contracts that now cross a new threshold.
The decision not to apply these amendments to procurements already commenced before January 1, 2026, creates a temporary dual-threshold system affecting ongoing projects.
Excluding contracts regulated by Welsh Ministers, who are issuing a separate instrument, adds complexity by requiring users to consult two distinct legislative sources for threshold values.
The justification that no significant change in impact is foreseen might underestimate the cumulative economic effect of revised thresholds across the public sector.
The Minister for the Cabinet Office makes these Regulations in exercise of the powers conferred by section 85(4) of, and paragraph 2 of Schedule 1 to, the Procurement Act 2023. These Regulations are made with the consent of the Department of Finance for Northern Ireland in accordance with section 113(4) of the Procurement Act 2023.
The Minister for the Cabinet Office created these rules using powers provided by Section 85(4) and Schedule 1, paragraph 2 of the Procurement Act 2023.
The Department of Finance for Northern Ireland also consented to these Regulations, as required by Section 113(4) of the Procurement Act 2023.
Citation, commencement and extent1.
(1)
(2)
The amendments made by these Regulations have the same extent as the provisions to which they relate.
The official short title for these rules is the Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025.
They officially take effect on January 1, 2026.
The scope, or extent, of the amendments implemented by these regulations applies only to the specific provisions within the Procurement Act 2023 that are being modified.
Amendment of the Procurement Act 20232.
(1)
The Procurement Act 2023 is amended as follows.
(2)
In section 85(3) (regulated below-threshold contracts: procedure)—
(a)
in paragraph (a), for “£138,760” substitute “£135,018”
;
(b)
in paragraph (b), for “£213,477” substitute “£207,720”
.
(3)
In Schedule 1 (threshold amounts), in paragraph 1—
(a)
in sub-paragraph (1), for the words before the table substitute—
“The threshold amount for a contract of a type referred to in the second column of the table below is—
(c)
if the contract is regulated by the Welsh Ministers, the threshold set out in the corresponding row of the third column, and
(d)
in any other case, the threshold set out in the corresponding row of the fourth column.”;
(b)
in sub-paragraph (1), in the table—
(i)
in the heading of the third column, at the end insert
;“: contract regulated by Welsh Ministers”
(ii)
insert a fourth column as follows—
“Threshold amount: any other contract
£5,193,000
£5,193,000
£415,440
£5,193,000
£884,720
£415,440
£5,372,609
£663,540
£5,193,000
£5,193,000
£135,018
£207,720”;
(c)
after sub-paragraph (1), insert—
(1B)
For the purposes of sub-paragraph (1) a contract is regulated by the Welsh Ministers if it is—
(a)
a contract awarded by a contracting authority that is a devolved Welsh authority, other than such a contract awarded as part of a procurement under a reserved procurement arrangement or a transferred Northern Ireland procurement arrangement, or
(b)
a contract which is awarded as part of a procurement under a devolved Welsh procurement arrangement.”.
This regulation amends the Procurement Act 2023.
Sub-regulation (2) specifically updates the monetary figures in Section 85(3), which governs the procedures for below-threshold works contracts, lowering the thresholds from £138,760 to £135,018 in one instance and from £213,477 to £207,720 in another.
Sub-regulation (3) significantly amends Schedule 1, which lists the general threshold amounts.
The introductory text of Schedule 1, paragraph 1(1), is rewritten to establish separate thresholds based on whether the contract is regulated by the Welsh Ministers (using the third column) or is any other contract (using the proposed fourth column).
The table in Schedule 1, paragraph 1(1) is updated by inserting a new fourth column detailing these 'any other contract' thresholds, alongside modifications to the heading of the third column to explicitly tag it for Welsh Minister-regulated contracts.
Furthermore, a new sub-paragraph (1B) is added to define precisely what constitutes a contract 'regulated by the Welsh Ministers' concerning devolved Welsh authorities and Welsh procurement arrangements.
Transitional provisions3.
(1)
Nothing in these Regulations affects any procurement commenced before the day on which these Regulations come into force.
(2)
For the purposes of paragraph (1), a procurement is commenced before the day on which these Regulations come into force if, before that day—
(a)
a tender notice has been published in accordance with section 21 (tender notices and associated tender documents) of the Procurement Act 2023;
(b)
a transparency notice has been published in accordance with section 44 (transparency notices) of that Act;
(c)
a below-threshold tender notice has been published in accordance with section 87 (regulated below-threshold contracts: notices) of that Act;
(d)
a contracting authority has invited the submission of tenders in relation to a regulated below-threshold contract (see section 85(1) (regulated below-threshold contracts: procedure) of that Act);
(e)
in respect of a below-threshold contract to which neither sub-paragraph (c) nor (d) applies, a contracting authority has contacted a supplier in order to commence the award of that contract.
These rules state that any procurement activity already started before January 1, 2026, will continue under the old threshold rules, meaning the new thresholds do not apply to those ongoing processes.
Sub-regulation (2) explicitly defines when a procurement is considered 'commenced' before the start date.
Commencement is triggered if, prior to the regulations taking effect, a tender notice or transparency notice was published, a below-threshold tender notice was issued, the authority invited tenders for a regulated below-threshold contract, or if the authority initiated contact with a supplier to award a below-threshold contract not covered by the previous conditions.
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