In this article:
• What the Procurement Act 2023 is and when it came into force
• The key changes to procedures, the central digital platform and the notices regime
• The thresholds, direct award rules and social value duties buyers must apply
• How Delta eSourcing helps buyers stay compliant at every stage
The Procurement Act 2023 and What It Means for Buyers
The Procurement Act 2023 is the biggest shake-up to UK public procurement in a generation, replacing the previous EU-derived regime with a single domestic rulebook. For contracting authorities, it introduces new duties, fresh notices and tighter timelines to get right, and these new procurement rules are also intended to increase SME participation and give SMEs greater access to public procurement opportunities — while the cost of getting them wrong is closer scrutiny and greater challenge risk. This guide gives buyers a plain-English overview of what has changed, the rules that now apply, and the practical steps to stay on the right side of them.
Public sector buyers are also operating at enormous scale. According to Delta eSourcing Q1 2026 procurement data (February–April 2026), UK authorities published 30,841 contract awards worth £1.07 trillion across just three months, from 2,703 separate buying authorities. Every one of those procurements now sits under the new regime, and thousands of public bodies rely on Delta eSourcing’s trusted procurement platform to manage them efficiently. That matters not only to authorities, but also to smaller suppliers seeking better access.
See how Delta eSourcing helps buyers stay compliant under the Procurement Act 2023 — request a free demo.
What is the Procurement Act 2023? A Plain-English Summary
In short: the Procurement Act 2023 is the law governing how most public sector contracts are advertised, awarded and managed in England, Wales and Northern Ireland. It received Royal Assent on 26 October 2023 and came into force on 24 February 2025.
This procurement act 2023 summary matters because the Act consolidates several previous regulations into one framework. Alongside that, it sets four statutory objectives that authorities must have regard to: delivering value for money, maximising public benefit, sharing information transparently, and acting with integrity — a package that forms the core of the UK’s procurement reform and transparency agenda. Scotland runs its own separate procurement rules, so the Act applies to reserved bodies operating there but not to devolved Scottish contracts.
Key Changes Under the Procurement Act 2023
Several structural reforms sit at the heart of the new regime, and understanding them is the fastest route to compliant procurement, supported by dedicated Procurement Act 2023 training and resources.
A single, unified procurement regime
Previously, buyers navigated multiple overlapping regulations depending on the type of contract. Now, one Act covers the majority of public contracts, with tailored rules for utilities, defence and light-touch services. Consolidation makes the process more consistent, yet it also means every buyer must relearn the core procedures.
New competitive procedures and flexibility
The Act replaces the old suite of procedures with just two competitive routes: the open procedure, a single-stage process open to all suppliers, and the competitive flexible procedure, a multi-stage route that authorities design themselves, which allows for bespoke bidding processes instead of rigid legacy procedures. As a result, buyers gain freedom to build in negotiation, dialogue or demonstration stages, and to award contracts based on the Most Advantageous Tender approach using criteria set out clearly in the tender notice.
The central digital platform and supplier information
A central digital platform now underpins the regime. Suppliers register their core details once and reuse them across bids, while authorities publish their notices to a single, searchable location. This shift is designed to cut duplication and widen visibility of upcoming opportunities, with suppliers registering once on the central digital platform and integrating seamlessly with systems like Delta under the Procurement Act 2023 supplier guidance.
Transparency and the new notices regime
Perhaps the most visible change is the expanded set of procurement act 2023 notices that run across the whole contract lifecycle — from planning through to award, performance and termination. New additions include the pipeline notice (required of authorities expecting to spend more than £100 million a year, covering contracts above £2 million) and the preliminary market engagement notice, both of which feature prominently in specialist procurement events and training sessions for buyers. Official procurement act 2023 guidance describes the ambition as “transparency by default”.
The effect is already measurable. According to Delta eSourcing Q1 2026 procurement data (February–April 2026), buyers published 3,125 pre-market engagement notices and just over 9,000 procurement notices, with disclosed values of £461 billion and £403 billion respectively. Authorities are also getting noticeably better at publishing contract values — a shift Delta eSourcing attributes in part to the transparency duties introduced by the Procurement Act 2023.
Manage tenders and notices in one compliant workspace with Delta eSourcing — request a free demo.
Procurement Act 2023 Thresholds Buyers Need to Know
Direct answer: procurement act 2023 thresholds are the estimated contract values (including VAT) at or above which the Act’s full rules apply.
For the period to 31 December 2025, the main thresholds are £139,688 for goods and services bought by central government, £214,904 for goods and services bought by sub-central authorities such as councils, and £5,372,609 for works contracts. Light-touch service contracts carry a higher threshold of £663,540. Because these figures are reviewed every two years to track the UK’s international obligations, revised amounts took effect on 1 January 2026 — so procurement act 2023 buyers should always confirm the current figure before advertising. Contracts below these levels fall under the separate below-threshold rules in Part 6 of the Act.
Direct Award and Exemptions Under the Procurement Act 2023
Competition is the default position, but the Act still recognises limited situations where a contract can be awarded without one.
When direct award is permitted
A direct award procurement act 2023 route is available only where a specific justification applies — for example, where a Schedule 5 ground such as extreme urgency or a single possible supplier is met under section 41. Separately, section 42 allows ministers to permit direct awards to protect life in defined circumstances.
Switching to direct award and modifying contracts
Section 43 lets an authority switch to a direct award after a failed competition — where suitable tenders were invited but none were received. Since these grounds are narrow and open to challenge, buyers should record the justification carefully and keep a defensible audit trail. Delta eSourcing supports this by keeping award decisions, supplier correspondence and published notices together in one place through its dedicated tender and procurement management system.
Social Value and the Procurement Act 2023
The procurement act 2023 social value agenda is set through the National Procurement Policy Statement (NPPS), published on 13 February 2025, and buyers are expected to start preparing early in line with Procurement Act 2025 key deadlines and guidance. Under the new regime, contracts are awarded to the Most Advantageous Tender (MAT) rather than the “most economically advantageous” tender — a deliberate signal that price is not the only factor, and that procurement decisions can now give more weight to wider public outcomes, including benefits delivered through the supply chain. In-scope authorities apply a minimum 10% weighting to social value, and the updated Social Value Model became mandatory from 1 October 2025. In practice, buyers must now evaluate wider benefits such as skills, jobs, environmental outcomes and support for smaller suppliers and social enterprises, and many develop these capabilities through specialist public sector procurement webinars. Authorities are also encouraged to break contracts into smaller lots and set spend targets for SMEs, while carrying those social value commitments through contract management across the full contract lifecycle.
How Delta eSourcing Helps Buyers Comply with the Procurement Act 2023
Meeting these duties across every procurement is a real administrative burden, especially given the sheer volume of activity in the market. Delta eSourcing is an eProcurement software platform built to help contracting authorities manage that burden in one compliant workspace: publishing the right notices at the right time, running open and competitive flexible procedures, evaluating bids transparently against MAT criteria, and maintaining a complete audit trail for every decision. With UK authorities awarding an average of £35.8 million per contract in Q1 2026 (Delta eSourcing procurement data, February–April 2026), a consistent and defensible procurement, contract and tender management process is not a nice-to-have — it is essential.
Procurement Act 2023 FAQs for Buyers
When did the Procurement Act 2023 come into force?
It came into force on 24 February 2025, having received Royal Assent on 26 October 2023.
What are the Procurement Act 2023 thresholds?
For contracts up to 31 December 2025, the main thresholds are £139,688 (central government goods and services), £214,904 (sub-central goods and services) and £5,372,609 (works), all including VAT. Revised figures apply from 1 January 2026.
When can buyers use direct award under the Procurement Act 2023?
Only where a specific justification applies — such as a Schedule 5 ground under section 41, ministerial provision under section 42, or a switch after a failed competition under section 43.
What notices are required under the Procurement Act 2023?
Notices run across the lifecycle and include planning notices such as the pipeline and preliminary market engagement notices, tender and transparency notices, and contract award, contract details and performance notices.
How does social value work under the Procurement Act 2023?
Contracts are assessed on the Most Advantageous Tender basis, with a minimum 10% social value weighting for in-scope authorities under the National Procurement Policy Statement.
Key Takeaways for Buyers
The Procurement Act 2023 gives buyers a single, more flexible and more transparent regime — but it also raises the bar on notices, thresholds, direct award justifications and social value. Getting these fundamentals right protects authorities from challenge and delivers better outcomes for the public. Practically, the priorities are clear: publish the right notices, apply the correct thresholds, justify any direct award, and evaluate on the Most Advantageous Tender.
Ready to run compliant procurements under the Procurement Act 2023? Request a free demo of Delta eSourcing.