January 2026 marked a significant moment for UK public procurement. New financial thresholds introduced under the Procurement Act 2023 came into force, alongside stronger transparency rules, increased cyber security expectations and growing sustainability requirements.
For organisations working with the NHS, these latest changes signal a continued shift toward greater accountability, digital transparency and supply chain resilience. They also mean that more contracts will now fall within the regulated procurement regime.
For suppliers and contracting authorities alike, understanding these changes is essential to staying competitive in the evolving NHS procurement landscape.
How have the thresholds changed for NHS procurement?
From 1 January 2026, NHS procurement thresholds have slightly decreased to align with international agreements, which means more contracts now fall under the Procurement Act 2023.
The key 2026 threshold changes (inclusive of VAT) are as follows:
- Central government goods and services have decreased to £135,018
- Sub-central/NHS bodies goods and services have decreased to £207,720
- Works contracts have decreased to £5,193,000
- Light touch contracts (services) remain unchanged at £884,720
While the adjustments may appear relatively small, their practical impact is significant. Lower thresholds mean a greater number of contracts must now follow competitive procurement processes, increasing both compliance requirements and market competition.
For NHS suppliers, this reinforces the importance of creating a strong bid that demonstrates clear value propositions, measurable goals and targets, and robust governance when pursuing public sector opportunities.
What do the threshold changes mean for NHS tenders?
One of the core objectives of the Procurement Act 2023 is to improve transparency across public sector procurement.
In practice, this means contracting authorities must now publish more information throughout the procurement lifecycle, such as their payment terms and how they track and monitor performance. This is great news for those bidding for public sector contracts as they can not only envisage what a working relationship will look like with the contractor, but it can also enable bidders to work things like their working processes and practices and how they will measure outcomes into their tender bids.
Cyber security becomes a procurement requirement
As well as the procurement thresholds changing, this month, NHS England issued guidance to suppliers requiring evidence of compliance with the Cyber Security Supply Chain Charter, particularly for organisations delivering critical services or digital solutions.
This shift reflects wider government concerns about cyber risks affecting critical infrastructure.
For suppliers, the message is clear – cyber security is no longer optional in NHS procurement. Organisations bidding for contracts may be expected to demonstrate that they can deliver:
- Robust cyber governance and risk management
- Compliance with recognised security frameworks
- Clear processes for managing data security incidents
Sustainability and carbon reduction in NHS tenders
Environmental sustainability is also becoming embedded within NHS procurement processes.
Many NHS tenders now also require suppliers to submit Carbon Reduction Plans (CRPs) aligned with the NHS’s commitment to achieving Net Zero emissions. These plans typically include reporting on Scope 1, 2 and 3 emissions and demonstrating intent to further reduce environmental impact.
For suppliers, these revised thresholds and additional requirements represent both a challenge and an opportunity. While compliance requirements are increasing, the procurement environment is also becoming more transparent and accessible, particularly for SMEs seeking to enter NHS supply chains.
If you’d like help navigating NHS tender opportunities, talk to a member of our team by calling 0330 133 8823 or emailing info@klowconsulting.com.