Wales updates procurement thresholds from 1 January 2026

If you buy for a school, college, council or university in Wales-or sell to them-note the small timing detail with big practical effects. From 12.05 a.m. on 1 January 2026, updated financial thresholds under the Procurement Act 2023 will apply to Welsh-regulated contracts. The Regulations were made on 9 December 2025 and laid before the Senedd on 11 December 2025. This follows a UK‑wide thresholds update taking effect at midnight on the same day, so the Welsh changes slot in straight after and keep everything aligned with the national framework and international rules.

Let’s pin down what a “threshold” is before we go further. Thresholds are the price points-calculated including VAT-that decide whether you must run a full tender under the Act or can use the below‑threshold route. They live in Schedule 1 of the Act and are reviewed to keep the UK in step with its trade commitments. Once your estimated contract value meets or exceeds the relevant figure, the full regime generally applies; if not, the lighter below‑threshold provisions in Part 6 kick in.

So what exactly changes in Wales? The Welsh Regulations simplify how Schedule 1 works for devolved Welsh authorities by tidying the thresholds table and removing wording that created a separate “any other contract” column. In practice, that means the figures that matter for Welsh‑regulated contracts are the same WTO Government Procurement Agreement (GPA) values the UK uses, presented without the extra column that had been added in the UK instrument. The aim is clarity and alignment.

Where the numbers land from 1 January 2026 matters for everyday decisions. The works and concession threshold sits at £5,193,000. Utilities contracts that are not light‑touch are £415,440, while utilities light‑touch stays at £884,720. The general light‑touch threshold remains £663,540. For most routine buys, the thresholds for supplies and services are £135,018 for central government authorities and £207,720 for sub‑central bodies such as councils and universities. All figures are inclusive of VAT. Most thresholds dip slightly compared with 2024 due to exchange‑rate movements; light‑touch levels stay the same.

A key classroom‑style concept is timing. Live procurements aren’t disturbed. If your process has already “commenced” before the Welsh Regulations take effect, you carry on under the old figures. A procurement counts as commenced if you have published a tender notice, a transparency notice, or a below‑threshold tender notice-or, for other below‑threshold purchases, if you have contacted a supplier to start the award. That definition is set out alongside the UK update and is mirrored in Wales so buyers and suppliers aren’t caught mid‑process by new numbers.

What this means in plain terms: you should check any pipeline buys that might straddle New Year’s Day, re‑check your value estimates with VAT included, and confirm which category your contract fits-works, services, supplies, concession, utilities, or light‑touch. Health services are a special case to watch, because Wales plans a separate Provider Selection Regime for certain health procurements; relevant authorities will follow those rules for in‑scope health services rather than the Act once they are in force.

If you’re a supplier, especially an SME, lower sterling thresholds can pull more notices into full tender territory. That’s not a reason to panic; it’s a nudge to get tender‑ready. Expect to see central government notices at the £135,018 mark and many local and education buys nudging the £207,720 line. Keep an eye on Find a Tender and your usual portals as contracting authorities refresh documents and timelines to reflect the 2026 figures.

For learners and teams training together, try this quick scenario. A college plans a £180,000 (including VAT) laptop purchase in January. As a sub‑central body, that sits below £207,720, so the below‑threshold rules apply. But a central government body buying at the same price would cross £135,018 and need the full regime. Working these out as a group builds confidence, and it’s exactly the kind of judgment call you’ll make in real budgets.

One last civic note: the Regulations are signed by Mark Drakeford, the Cabinet Secretary for Finance and Welsh Language. This is routine but important-Wales is keeping its procurement system in step with GPA obligations while making the text easier to apply in classrooms and offices alike. If you need the deeper detail, the Welsh Government’s guidance explains thresholds clearly, and a regulatory impact assessment has been prepared and is available from the Commercial and Procurement Directorate in Cardiff.