UK Procurement Thresholds 2024: Complete Value Guide
Current UK procurement threshold values for 2024. Understand which rules apply to your contracts based on value and contracting authority type.
Procurement thresholds determine which regulations apply to public sector contracts. Understanding these values helps both buyers comply with requirements and suppliers identify appropriate opportunities.
Current Threshold Values (2024)
Thresholds are reviewed and typically updated every two years. The following values apply from January 2024:
Goods and Services
| Authority Type | Threshold (£) | Threshold (€) |
|---|---|---|
| Other Public Sector | 214,904 | 221,000 |
Works Contracts
| Authority Type | Threshold (£) | Threshold (€) |
|---|
Light-Touch Regime Services
| Authority Type | Threshold (£) | Threshold (€) |
|---|
Concession Contracts
| Authority Type | Threshold (£) | Threshold (€) |
|---|
Understanding Authority Types
Central Government
Includes government departments and their executive agencies, such as HMRC, DWP, and Ministry of Justice. These organisations face the lowest thresholds for goods and services.
Other Public Sector Bodies
Includes local authorities (councils), NHS organisations, police and fire services, educational institutions, and arm's-length bodies. These have higher thresholds for goods and services.
Utilities
Organisations operating in water, energy, transport, or postal sectors have separate threshold arrangements under the Utilities Contracts Regulations.
Threshold Implications
Above-Threshold Contracts
Contracts above threshold values must be advertised on Find a Tender, follow formal procurement procedures, observe minimum timescales, and comply with standstill requirements.
Below-Threshold Contracts
Contracts below thresholds are still subject to general principles of transparency and fair treatment, publication on Contracts Finder (for contracts over £25,000/£10,000), and organisational procurement policies.
Calculating Contract Value
General Rules
Contract value should reflect the total value over the full term, including extension options, all lots within a procurement exercise, and VAT (excluded from calculation).
Avoiding Artificial Splitting
Organisations must not artificially divide contracts to avoid threshold requirements. Recurring requirements should be aggregated.
Framework Values
Framework agreement values reflect total expected expenditure by all users over the framework term.
Light-Touch Regime Services
Certain service categories benefit from lighter regulation under the "light-touch regime." These include health and social services, educational services, hotel and restaurant services, legal services (some), and postal services.
Practical Considerations
For Buyers
Accurate value estimation is essential for compliance, threshold creep during contract term requires monitoring, and multi-authority procurements may aggregate values.
For Suppliers
Below-threshold opportunities are often less competitive. Local procurement policies may apply to lower values. Framework access provides route to above-threshold work.
Conclusion
Thresholds define the regulatory landscape for public procurement. Buyers must accurately assess values and apply appropriate procedures; suppliers can use threshold awareness to identify opportunity types matching their capabilities.