The introduction of the Procurement Act 2023 has brought with it a new wave of changes for public sector procurement. For schools and academy trusts, this means adapting to a legislative landscape that aims to enhance transparency, promote fair competition, and simplify processes.
This article provides a practical overview of some key changes under the new legislation, comparing it with the Public Contracts Regulations 2015, and highlighting what you need to be aware of when running above-threshold tenders. It is aimed specifically at schools and Trusts as a ‘practical guide. It’s important to state that if you’re at all unclear on any elements then seeking expert legal advice is always an option.
1. Procurement Thresholds – No Changes (Yet)
We begin with a rare bit of good news: procurement thresholds remain unchanged under the new Act.
- Supplies & Services: £214,904 (including VAT)
- Works Contracts: £5,372,609 (including VAT)
- Light Touch Regime (e.g. catering): £663,540 (including VAT)
You must always include VAT and account for the ‘whole life value’ of the contract, including any optional extensions. So if you have a contract with a 3 year initial term and two optional extensions of 12 months each then you must value the contract over 5 years. These thresholds change every two years with the next one expected in January 2026.
2. Training and Professional Development
To ensure compliance and confidence with the new rules you can access:
- Knowledge Drops: Short, 45-minute video resources—perfect for all staff involved in tendering.
- Government Commercial College – Transforming Public Procurement: Offers nine in-depth e-learning modules (plus a test!) for those handling above-threshold procurement.
- Advanced Certificate Deep Dives: Three days of virtual training sessions available until July 2025. Can only be accessed once you have completed the above course.
You can build these into your INSET or CPD schedule where possible.
3. Enhanced Focus on Conflicts of Interest
Sections 81–83 of the Act introduce a much stronger emphasis on identifying and mitigating conflicts of interest throughout the procurement process. You’ll need:
- A Conflicts Assessment for the Trust or school (referred to as the “contracting authority”).
- Individual Declaration Forms for all staff involved in procurement.
- Conflicts should be reviewed at key stages:
- Project initiation
- Post-drafting of procurement documents
- After stage scoring (either Participation and/or Invitation to Tender stages)
- Prior to contract award
Templates for both documents are available via the Government’s Procurement Pathway website.
4. Supporting Small and Medium-Sized Enterprises (SMEs)
Section 12(4) of the Act requires that public bodies consider the inclusion of SMEs in their procurement exercises. Even where SME involvement is not feasible, this decision should be documented.
Ways to enable SME participation:
- Remove or reduce financial threshold requirements
- Accept relevant experience from non-education settings
- Use ‘lots’ to divide contracts geographically or by school type (e.g. primary vs secondary)
Please note, using lots isn’t always appropriate (e.g. trust-wide software or single-site procurements). Where not used, you need to record your rationale for this.
5. Prompt Payment Rules – Exemption for Schools
Although the new legislation includes prompt payment obligations for many public sector bodies, schools and Trusts are exempt. That means:
- No need to publish prompt payment notices
- No need to report average supplier payment times
If challenged on this by any suppliers, you can confidently state your exemption status.
6. New and Renamed Procurement Notices
Transparency is a key theme in the Procurement Act 2023, and with it comes a host of new notices that must be published via the Central Digital Platform. The following are a list of some of the key notices schools and Trusts will need to be aware of:
| Notice Type | Purpose |
| Tender Notice (UK4) | Formerly known as the Contract Notice |
| Contract Award Notice (UK6) | Starts the standstill period |
| Assessment Summary | Replaces the standstill letter |
| Contract Details Notice (UK7) | Published after contract signature; may include KPIs |
| Contract Performance Notice (UK9) | Issued if there are performance issues |
| Contract Termination Notice (UK11) | Required at the end of every contract |
| Procurement Termination Notice (UK12) | If a procurement process is cancelled mid-way |
For contracts over £5 million, you must publish at least three KPIs and report on them annually.
7. Central Digital Platform (CDP)
Replacing the Find a Tender Service, the CDP is now the official location for:
- Publishing notices
- Supplier registration (with reusable details)
- Contracting authority registration
- Schools/trusts will need:
- An API key to publish notices
- A PPON (Public Procurement Organisation Number)
This helps improve government oversight and track SME engagement across the public sector. The government has produced guidance on how to use the CDP and the changes related to it. You can access this information here.
8. From SQ to PSQ: New Supplier Questionnaires
The Selection Questionnaire (SQ) has now become the Procurement Specific Questionnaire (PSQ)—a more concise document to avoid duplication with the information already stored in the CDP. Be careful when you are searching online to make sure you are using PSQ templates, not outdated SQ or even PQQ versions.
9. A Fairer Standstill Period
The previous 10 calendar days have been replaced with 8 working days to ensure fairness. This change prevents gamesmanship such as publishing late on a Friday or before Bank Holidays to reduce the effective challenge window for suppliers.
10. Stronger Record-Keeping Requirements (Clause 98)
Robust records are essential—not just for compliance, but to defend against potential challenges. Keep a procurement audit report that logs:
- Decisions made
- Scores
- Documentation links
This will serve future staff or provide evidence if a process is scrutinised.
11. National Procurement Policy Statement (NPPS)
You must have regard to the NPPS, which outlines the government’s priorities—such as net zero or job creation. You can choose not to apply it, but you must record your justification.
12. Supplier Debarment and Exclusions
Suppliers must now self-declare whether they are:
- Excluded (mandatory grounds)
- Excludable (discretionary grounds)
You must check the Debarment List to ensure a barred supplier is not progressing in your procurement.
Common Questions Answered
Q: Do schools have to publish below-threshold tenders on the CDP?
A: No. Publication is only required for tenders exceeding the applicable threshold (as set out in point 1 above).
Q: What about using frameworks?
A: Most frameworks currently in use were established under the existing Public Contracts Regulations 2015. Framework owners will typically handle relevant notices, but you should follow any instructions they provide regarding call-off requirements.
Final Thoughts
While the Procurement Act 2023 introduces complexity, it also offers clarity, modernisation and very importantly flexibility. By embracing training, refining internal processes, and maintaining thorough documentation, schools and trusts can remain compliant—and confident—in their procurement activities.
