What are the new thresholds?
The Procurement Act 2023 (Threshold Amounts) (Amendment) Regulations 2025 (SI 2025/ 1200) were laid before Parliament on 25 November 2025 and will come into force on 1 January 2026.
These regulations amend threshold values following a review of the thresholds set out in Schedule 1 of the Procurement Act 2023, to ensure that they align with the thresholds set out in the World Trade Organisation's Agreement on Government Procurement (the “GPA”), which are updated every two years. As set out below, rows 4, 6, and 9 to 12 in Schedule 1 of the Procurement Act 2023 (“the Act”) have been aligned with the GPA.
The threshold amounts for light touch contracts, regulated below-threshold contracts and defence and security contracts are not subject to the two-year adjustment requirement, but have nonetheless been amended to ensure consistency with the GPA (see rows 1 to 3 below). Rows 5, 7 and 8 of Schedule 1 have not been changed.
The threshold amounts in section 85 of the Procurement Act 2023, which relate to the applicability of certain procedures to regulated below-threshold works contracts, have also been updated to ensure they also remain aligned with the GPA thresholds.
Why have the thresholds changed?
Accompanying guidance in the form of ‘PPN 023: 2026 Threshold Amounts’, the thresholds under the Procurement Act 2023 are “revised every two years to take account of currency fluctuations, and to ensure the UK complies with its obligations under the World Trade Organisation’s Agreement on Government Procurement (GPA).”
Which contracting authorities do the new thresholds apply to?
PPN 023:2026 Threshold Amounts states the new thresholds apply to all contracting authorities including "all central government departments, their executive agencies, non-departmental public bodies and the wider public sector".
If you are a public body considering how the new thresholds or latest measures in PPN Note 023: 2026 (Threshold Amounts) might affect your organisation, please contact a member of DWF's national public sector team to discuss how we might assist you.
Thank you to Charlotte Barber, a Trainee in our Commercial Team, for their assistance in creating this article.
