Welsh Procurement Policy Note (WPPN) 017: New thresholds

This WPPN provides notification of the new threshold values for the Public Contracts Regulations which govern the procedures for the award of public contracts for goods, works and services as set out in the Procurement Act 2023 (PA23). A summary of threshold amounts which applicable from 12:05am on 1 January 2026, can be found at Annex A.

This information is directly applicable to all Devolved Welsh Authorities (DWAs) whose functions are wholly or mainly Welsh devolved functions.

This information should be circulated within your organisation, particularly drawing it to the attention of those with a procurement or contract management role.

Please circulate this WPPN within your organisation, drawing it to the attention of those with a commercial and procurement role.

The threshold amounts, at which public procurement opportunities are subject to the full PA23 regime governing public contracts, are due to be updated. They are revised every 2 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).

Annex A sets out the revised threshold amounts for public contracts for goods, works and services from 1 January 2026 as per the amendments made to Schedule 1 to PA23 via The Procurement Act 2023 (Threshold Amounts) (Amendment) (Wales) Regulations 2025.

The threshold amounts for light touch contracts, regulated below-threshold contracts and defence and security contracts are not subject to the 2-year currency fluctuation amendment required to comply with our GPA obligations. However, the threshold amounts for regulated below-threshold contracts and defence and security contracts are nonetheless being amended to ensure consistency and alignment with the GPA.

In addition, the threshold amounts in section 85 of PA23, which relate to the applicability of certain procedures to regulated below-threshold works contracts, are also being updated to ensure they also remain aligned with the GPA thresholds.

The new threshold amounts do not affect any procurement commenced before 1 January 2026. As per regulation 4 of the Procurement Act 2023 (Threshold Amounts) (Amendment) (Wales) Regulations, a procurement is commenced where a tender notice, transparency notice or below-threshold tender notice has been published in respect of that procurement, or the contracting authority has invited the submission of tenders in respect of a regulated below-threshold contract or has otherwise contacted a supplier to commence the award of a below-threshold contract.

In-scope organisations must apply the revised threshold amounts detailed in Annex A in respect of any procurements that commenced on or after 1 January 2026.

For UKG Contracting Authorities please refer to PPN 023

The Procurement Act 2023 (Threshold Amounts) (Amendment) (Wales) Regulations 2025

The new threshold amounts came into effect at 12.05am on 1 January 2026. And as such, in-scope organisations must apply the provisions of this WPPN in respect of any procurements that commenced on or after 1 January 2026.

Please direct any enquiries to Commercial Policy – Polisi Masnachol - CommercialPolicy@gov.wales / PolisiMasnachol@llyw.cymru

Type of contract and threshold amount

1. Defence and security contract that is a works contract - £5,193,000
2. Defence and security contract that is a concession contract - £5,193,000
3. Defence and security contract not within row 1, 2 or 8 - £415,440
4. Utilities contract that is a works contract - £5,193,000
5. Utilities contract that is a light touch contract - £884,720
6. Utilities contract not within row 3, 4 or 5 - £415,440
7. Light touch contract that is a concession contract - £5,372,609
8. Light touch contract not within row 5 or 7 - £663,540
9. Concession contract not within row 2, 6 or 7 -  £5,193,000
10. Works contract not within row 1, 4 or 9 - £5,193,000
11. Contract for the supply of goods, services or works to a central government authority not within any other row - £135,018
12. Contract for the supply of goods, services or works to a sub-central government authority not within any other row - £207,720