NWUPC

The Cabinet Office has published PPN 023, confirming the new procurement thresholds that will apply from the 1st of January 2026 under the Procurement Act 2023 (PA23). These updates apply to all public sector contracting authorities, so organisations should ensure colleagues in procurement and commercial roles are aware of the changes.

The thresholds are reviewed every two years to keep the UK aligned with the World Trade Organisation’s Government Procurement Agreement. For our sector, the key updates are:

• Number 10 – Works contract not within row 1, 4 or 9 – £5,193,000
• Number 12 – Contract for the supply of goods, services or works to a sub-central government authority not within any other row – £207,720

These amounts set the point at which procurements must follow the full PA23 procedures. Other below-threshold and defence-related values have also been adjusted for consistency.

The new thresholds apply only to procurements starting on or after the 1st of January 2026; anything already underway before that date will continue under the existing rules.

The full article can be found at the UK Gov website. Enquiries about this PPN should be directed to the Crown Commercial Service Helpdesk (0345 410 222, info@crowncommercial.gov.uk).