Understanding the New Procurement Act 2023: A Summary for Schools, Academies, and Multi-Academy Trusts

The landscape of public procurement in the UK has undergone significant changes with the introduction of the Procurement Act 2023, which came into force on 24 February 2025. This new legislation aims to streamline procurement processes, give greater flexibility to how processes can be conducted, all whilst ensuring compliance with legal requirements. For schools, academies, and Multi-Academy Trusts (MATs), understanding these changes is crucial not only for compliance but also for leveraging opportunities that can enhance your operational efficiency and deliver you value for money.

Key Features of the Procurement Act 2023

1. Simplified Procedures: The Act consolidates previous regulations into two primary procedures: the Open Procedure and the Competitive Flexible Procedure (CFP). This simplification allows contracting authorities, including schools and MATs, to navigate procurement processes more easily. The CFP introduces flexibility, enabling authorities to adapt their approach based on specific needs.  Schools, academies and Trusts mainly used the Restricted Procedure under the previous Public Contracts Regulations 2015.  The new CFP incorporates the ability to conduct negotiations, something not available under the main procedure previously used by schools.
2. Transparency and Accountability: One of the core principles embedded in the Act is transparency. Contracting authorities are now required to publish various notices throughout the procurement lifecycle, including Tender Notices, Contract Award Notices and Contract Details Notices. This shift towards “transparency by default” ensures that all stakeholders have access to relevant information, fostering trust and accountability in the procurement process.
3. New Notice Requirements: The Act introduces several mandatory notices that must be published, particularly for contracts valued over £5 million. These include:
   • Contract Performance Notices: To report on supplier performance against agreed KPIs.
   • Contract Change Notices: Required before making substantial modifications to existing contracts.
   • Contract Termination Notices: Must be published when a contract is terminated, detailing the reasons for termination.  This could be just when it comes to an end, expires or there is early termination.
4. Enhanced Focus on SMEs: The Act emphasises the need to consider small and medium-sized enterprises (SMEs) in procurement decisions. Schools and MATs are encouraged to ensure that their procurement practices do not inadvertently disadvantage smaller suppliers, thus promoting inclusivity and competition within the market.

Exemptions for Schools, Academies, and Multi-Academy Trusts

While the Procurement Act 2023 establishes comprehensive guidelines for public procurement, it also recognises the unique context of educational institutions. To reflect this there are some key exemptions and considerations specifically relevant to schools, academies, and MATs:

1. Below-Threshold Contracts: Schools and academies are exempt from the rules governing below-threshold procurements. This means that for contracts valued below a certain threshold, they can operate under internal financial regulations rather than the stringent requirements set out in the Act. This exemption provides greater flexibility in managing smaller contracts without the burden of extensive regulatory compliance.
2. Light Touch Regime: The Act maintains a Light Touch Regime for certain services, allowing schools and MATs to engage in less formal procurement processes for specific categories of services, such as school catering. Under this regime, there are fewer procedural requirements, enabling quicker and more efficient procurement tailored to the needs of educational settings.
3. Conflicts of Interest: The Act places a really strong emphasis on identifying and mitigating conflicts of interest throughout the procurement process. Schools and MATs must conduct thorough assessments to ensure that no unfair advantages are granted to any suppliers, particularly those with connections to decision-makers within the institution.  This is definitely something with has much greater focus than the previous legislation.

Practical Implications for Schools and MATs

As schools, academies, and MATs prepare to implement the new Procurement Act, several practical steps can facilitate compliance and optimise procurement outcomes:

1. Training and Awareness: It is essential for staff involved in procurement to receive training on the new legislation. Understanding the nuances of the Act will empower them to make informed decisions and adhere to the required processes.
2. Review Internal Policies: You should review your internal procurement policies to align with the new requirements. This includes updating documentation, processes, and templates to reflect the changes introduced by the Act.
3. Engage with Suppliers: Schools and MATs should actively engage with potential suppliers, especially SMEs, to foster competitive bidding. By communicating clearly about upcoming procurement opportunities and expectations, they can encourage diverse participation.
4. Maintain Records: Keeping detailed records of procurement activities is vital for demonstrating compliance with the Act. Schools and MATs should establish robust record-keeping practices to document decisions, communications, and evaluations related to procurement processes.

Conclusion

The Procurement Act 2023 represents a most significant evolution in public procurement law in a decade.  It offers schools, academies, and Multi-Academy Trusts an opportunity to enhance their procurement practices while ensuring compliance with the new regulations. By understanding the key features of the Act and recognising the specific exemptions applicable to educational institutions, stakeholders can navigate the new landscape confidently. Embracing transparency, engaging with suppliers, and maintaining rigorous record-keeping will position schools and MATs to achieve optimal outcomes in their procurement activities, ultimately benefiting the students and staff they serve.

N.B. The Procurement Act 2023 went live on 24^th February 2025.  The guidance in the blog post relates to the new legislation.  If your tender commenced under the Public Contracts Regulations 2015 then the guidance is slightly different.  If you are unsure what applies to your specific procurement, please get in touch.