Procurement Act 2023 explained
Estimated reading time: 6 minutes
The Procurement Act 2023 is now live and applies to public procurements started from 28 February 2025. For many contracting authorities, this has meant a real shift in how procurements are planned, run, evaluated, and defended.
This page explains the Procurement Act 2023. What it is, why it was introduced, how it differs from PCR 2015, and what public sector teams need to be doing differently now that it is in force.
Whether you are adapting existing processes or sense-checking how confident you really feel under the new rules, this guide is designed to be practical rather than theoretical.
In a hurry? Here’s what matters
- The Procurement Act 2023 replaced PCR 2015 from 28 February 2025
- It introduces more flexibility, but also higher expectations around transparency and justification
- Evaluation decisions are under greater scrutiny than before
- Record keeping and audit trails matter more than ever
- Challenges now arise from how decisions are explained, not just what decision was made
What is the Procurement Act 2023
The Procurement Act 2023 is UK legislation that reforms how public sector organisations buy goods and services. It replaces the Public Contracts Regulations 2015 and related EU-derived procurement rules.
The aim of the Act is to simplify procurement, create more flexibility in how competitions are run, and improve transparency across the full procurement lifecycle.
In practice, the Act shifts the focus away from rigid procedures and towards decision-making quality. Contracting authorities now have more freedom to design procurement processes, but must be far clearer about why those choices were made and how fairness was maintained.
For many teams, this represents a behavioural change as much as a regulatory one.
When did the Procurement Act 2023 come into force
The Procurement Act 2023 went live 28 February 2025.
Above the threshold procurements that formally started on or after that date must follow the Act. Procurements that began before 28 February 2025 continue to be governed by PCR 2015.
As a result, many organisations spent much of 2025 operating under both regimes at the same time. While this transition period has largely passed, its impact is still being felt through legacy templates, mixed practices, and inconsistent confidence across teams.
A common risk in 2026 is assuming everyone now understands the Act in the same way. In reality, experience and interpretation still vary widely.
Who the Procurement Act 2023 applies to
The Act applies to most public sector contracting authorities, including central government departments, local authorities, NHS bodies, and other public bodies carrying out covered procurements.
It also applies to utilities and certain other organisations, subject to scope and exclusions.
If your organisation was previously subject to PCR 2015, you should assume the Procurement Act 2023 applies unless you have clear guidance confirming otherwise.
Suppliers are not directly bound by the Act, but they are affected by changes to procedures, transparency requirements, evaluation approaches, and feedback.
Key changes introduced by the Procurement Act 2023
Greater procedural flexibility
The Act introduces a smaller number of procurement procedures, including the competitive flexible procedure. This allows contracting authorities to design a process that reflects the market and the complexity of the requirement.
However, flexibility does not remove risk. It increases the need to justify why the chosen approach was appropriate and how it was applied consistently.
What this means in practice
Teams must be confident in their procurement strategy and able to explain it clearly if challenged.
Expanded transparency requirements
Transparency is one of the most significant changes under the Act. Additional notices are required across planning, competition, award, and contract performance stages.
More information is published, and it is published more frequently.
What this means in practice
Procurement activity is more visible. Unclear decision-making and poor documentation are easier to spot.
Increased scrutiny of evaluation and award decisions
Evaluation criteria must be clear, proportionate, and consistently applied. Scoring decisions must be supported by rationales that stand up to external review.
Subjective judgement is still permitted, but it must be structured and well evidenced.
What this means in practice
Evaluation processes need discipline, guidance, and a reliable audit trail.
Greater focus on supplier performance
The Act places more emphasis on supplier behaviour and performance, including requirements to record and, in some cases, publish performance information.
What this means in practice
Decisions made during evaluation can have long-term implications beyond contract award.
Procurement Act 2023 vs PCR 2015
While the core principles of fairness and competition remain, the mindset has changed.
Under PCR 2015, compliance often focused on following prescribed steps. Under the Procurement Act 2023, compliance is about demonstrating that decisions were reasonable, fair, and well justified.
| Aspect | PCR 2015 | Procurement Act 2023 |
|---|---|---|
| Procedures | Rigid and predefined | More flexible and authority led |
| Transparency | Limited and stage based | Expanded across the full lifecycle |
| Evaluation | Often template driven | Higher scrutiny on evaluation |
| Risk | Process errors | Poorly evidenced decisions |
In simple terms, there is less reliance on precedent and more emphasis on judgement.
Transparency under the Procurement Act 2023
Transparency requirements now span the full procurement lifecycle, from early planning through to contract performance.
For many teams, the concern is not transparency itself, but confidence. Publishing information is uncomfortable if the underlying decisions are not well documented or consistently applied.
The safest approach is not to publish less, but to improve the quality of the decisions and records that sit behind what is published.
How the Procurement Act 2023 affects evaluation and scoring
Evaluation is where many organisations feel the pressure of the new regime most acutely.
Scoring must be defensible. Moderation must be consistent. Rationales must clearly explain why one bid scored higher than another.
Processes that rely heavily on spreadsheets, emails, or informal discussions often struggle here, not because teams lack expertise, but because the Act demands clearer structure and traceability.
This is where many procurement teams have chosen to invest time in strengthening their evaluation approach.
Common mistakes organisations are still making
Even in 2026, a few patterns keep appearing.
- Treating the Act as a minor update to PCR 2015
- Using legacy templates without proper review
- Underestimating how visible decisions now are
- Leaving evaluation rationales vague or inconsistent
- Assuming confidence is higher than it actually is across teams
Most of these issues come from pressure and workload, not poor intent.
Current guidance and ongoing interpretation
Cabinet Office guidance continues to evolve as the Act beds in and real-world use cases emerge.
Organisations should regularly review guidance, reflect on lessons learned, and avoid assuming that early interpretations are fixed forever.
This page is reviewed and updated to reflect emerging practice and common questions.
Frequently asked questions
No. Thresholds and exclusions still apply, but many procurements fall within scope.
Yes. Greater transparency and clearer evaluation criteria reward focused, evidence-based responses.
Poorly run procurements increase the risk of challenge, delay, and reputational damage.
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