The Procurement Act 2023 has governed public procurement in England, Wales and Northern Ireland since 24 February 2025. Councils and most housing associations are contracting authorities under it, so they must follow its procedures above the thresholds, publish contract details notices for contracts of £30,000 or more below them, and pay valid invoices within 30 days, a term that flows down to subcontracts.
The Procurement Act 2023 has governed public procurement in England, Wales and Northern Ireland since 24 February 2025. If you are a council, or a housing association that meets the contracting-authority tests (most do), you must use its procedures above the thresholds, publish contract details notices for many smaller contracts, and pay valid invoices within 30 days, a term that also flows down to subcontracts.
When did the Act go live?
The Act went live on 24 February 2025 and is now fully in force. It covers England, Wales and Northern Ireland. Scotland is outside it and is not covered in this guide.
Frameworks and dynamic purchasing systems (DPSs) let under the Public Contracts Regulations 2015 run until they expire. For some years you will manage old and new arrangements side by side, so check which rules each arrangement was let under before you rely on it.
Is your housing association a contracting authority?
Usually, but not automatically. Under section 2(2), a body is a public authority if it is wholly or mainly publicly funded, or under public-authority oversight, and does not operate on a commercial basis.
- The Welsh Government says the Act was "not intended to change the position of the previous legislation".
- Procurement for Housing (PfH) says most registered providers meet the tests.
- Commercial subsidiaries may fall outside.
If your status, or a subsidiary's, is not settled, confirm it before you start a procurement. Suppliers should not assume that every housing association must follow the Act; most are treated as contracting authorities.
Which procedures can you use?
Section 20 sets out two competitive procedures:
- Open procedure: a single-stage tender that any supplier can respond to.
- Competitive flexible procedure: you design the stages to suit the contract, for example shortlisting followed by negotiation, and explain them to suppliers at the start.
Direct award without competition is allowed only in the special cases listed in section 41, or by "switching" to direct award under section 43. Calling off from a framework is a separate route, explained in the guide to frameworks, dynamic markets and direct awards.
What are the thresholds from 1 January 2026?
The Threshold Amounts (Amendment) Regulations 2025 set new thresholds from 1 January 2026, summarised in PPN 023.
| Category | Threshold |
|---|---|
| Works | £5,193,000 |
| Sub-central goods and services (councils, housing associations) | £207,720 |
| Central government goods and services | £135,018 |
| Light touch | £663,540 |
| Utilities goods and services | £415,440 |
Schedule 3 values a contract at the "maximum amount it could expect to pay". For a multi-year repairs or planned-works contract, that means the value over the whole term, not one year's spend.
What must you publish below threshold?
Section 87 requires a contract details notice for below-threshold contracts worth:
- £30,000 or more for sub-central and other authorities, which includes councils and housing associations that are contracting authorities;
- £12,000 or more for central government outside Wales.
These notices put smaller awards on the public record. For SME contractors, they are also the clearest view of who is buying what below threshold.
What is the Central Digital Platform?
The Central Digital Platform, reached through Find a Tender, is where notices are published and suppliers register. It is free to use. Suppliers register through GOV.UK One Login and receive a unique identifier, which they must share with you before contract award.
Ask for the identifier at tender stage, so that award is not held up by a supplier that has not yet registered.
How does 30-day payment work?
Valid invoices must be paid within 30 days. The term is implied into:
- public contracts (section 68);
- public sub-contracts (section 73);
- below-threshold contracts and their subcontracts (section 88).
It cannot be overridden by the contract. Ministers may shorten the period but not lengthen it. Concessions, private utilities and schools are excluded.
Because the clock runs from a valid invoice, agree early what makes an invoice valid: an order reference, completion evidence, photos and any certificates. Check that your main contractors' subcontract terms carry the 30-day term down the chain.
What is the debarment list?
A Minister keeps a debarment list on GOV.UK. Suppliers usually stay on it for up to 5 years. The guidance was updated on 17 August 2026. Check the list as part of your supplier checks before award.
What does the Act mean for SME contractors?
The Act changes how smaller contractors find public work and get paid for it:
- Registration: they need a Central Digital Platform registration and unique identifier before they can be awarded a contract.
- Visibility: tender notices, and contract details notices for below-threshold contracts of £30,000 or more, appear on Find a Tender.
- Payment: where they work under a public contract, or as a subcontractor on one, valid invoices must be paid within 30 days. The rule does not reach purely private contracts.
- Routes in: SMEs usually win work as tier-2 subcontractors to framework contractors, by joining dynamic markets, through lots reserved for SMEs, or by quoting directly below threshold.
- Pre-qualification: buyers commonly ask for a Common Assessment Standard certificate from a Recognised Assessment Body, which PPN 03/24 advises the public sector to accept. This is a buyer expectation, not a legal requirement.
If you want SMEs in your supply chain, keep pre-qualification proportionate to the contract, consider using lots, and ask framework contractors how they appoint local tier-2 firms.
This guide is a summary, not legal advice. Check the current legislation and guidance, or take advice on your own procurement.
How we help
We can work as a tier-2 partner to framework contractors, or quote directly where you buy below threshold. Our procurement page explains how to buy from us and what we can provide for your supplier checks.
Common questions
Does the Procurement Act 2023 apply in Scotland?
No. The Act covers England, Wales and Northern Ireland only. Scotland is outside it, and this guide does not cover Scottish procurement law.
Can a contract set payment terms longer than 30 days?
Not for contracts the Act covers. The 30-day term for valid invoices is implied into them and cannot be overridden. Ministers may shorten it but not lengthen it.
Do frameworks let under the old rules still run?
Yes. Frameworks and dynamic purchasing systems let under the Public Contracts Regulations 2015 run until they expire. Dynamic purchasing systems from those rules end automatically on 23 February 2029.
Does a supplier pay to register on the Central Digital Platform?
No. The platform is free to use. Suppliers sign in through GOV.UK One Login and receive a unique identifier, which they share with the buyer before contract award.
Sources
- Procurement Act 2023, section 2 (contracting authorities)
- Procurement Act 2023, section 20 (competitive tendering procedures)
- Procurement Act 2023, section 88 (payment terms in below-threshold contracts)
- PPN 023: 2026 threshold amounts
- Welsh Government: Procurement Act 2023 guidance for contracting authorities
- Procurement for Housing: is your housing association subject to the Procurement Act 2023?
- Procurement Act 2023 guidance: debarment
- How to register your organisation and find your unique identifier: a guide for suppliers
Checked 31 October 2026. This guide summarises the rules for planning purposes and is not legal advice; check the current legislation or take advice for your own case.
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