What Is the Procurement Act 2023?
The Procurement Act 2023 represents the most significant overhaul of public procurement law in the United Kingdom in over two decades. This legislation replaces the Public Contracts Regulations 2015 and came into force on 1 February 2025, fundamentally changing how public bodies, including NHS trusts and local authorities, must conduct their procurement processes.
The Act modernises procurement to be more flexible, transparent and efficient, whilst maintaining robust rules around value for money and competition. For social care providers, understanding this Act is essential, as it directly affects how councils and NHS commissioners source care services, from domiciliary care to supported living provision. You can access the full legislation at the UK Legislation website.
Why the Procurement Act 2023 Matters for Social Care Providers
For care providers operating in England, the Procurement Act 2023 has profound implications. Local authorities and NHS trusts commission substantial amounts of social care, including home care (domiciliary care), supported living, residential care and specialist services. When commissioning frameworks change, procurement processes become more accessible or more restrictive, affecting your ability to win contracts.
Local authority commissioning
Councils now have new flexibility in how they structure procurement, which can mean faster timescales or new requirements for bidders.
NHS partnerships
Health and social care integration means more joint procurement from unified commissioners.
Transparency obligations
All procurement activities are now published on a central digital platform, providing earlier visibility of opportunities.
Social value emphasis
The Act strengthens requirements for commissioners to consider social value, where Care Sync Experts can help you demonstrate impact.
Key Changes from the Public Contracts Regulations 2015
New Procurement Procedures
The Act introduces four main procurement procedures, each with specific rules and timescales:
Open procedure
All interested suppliers can bid. This remains the default for most large contracts.
Competitive flexible procedure:
A new procedure allowing suppliers to bid at different stages, reducing the burden of preparing full responses upfront.
Limited tendering
Available when conditions are met, such as insufficient response to an open procedure or technical reasons.
Direct award
Permitted in specific circumstances, allowing councils to award contracts to a single supplier without full competition.
Procurement Act 2023 for Care Providers
The Procurement Act 2023 changes how local authorities buy care services. Our guide explains the new rules, transparency requirements, and what care providers need to do differently when bidding for contracts.
Removal of OJEU and the Central Digital Platform
The European Union Official Journal (OJEU) requirement has been abolished. Instead, all UK public procurement is now advertised on the Central Digital Platform (Find a Tender). Whilst this simplifies the system for English providers, it removes the European visibility that some care providers valued.
Transparency and Reporting Requirements
The Act introduces new obligations for public bodies to publish procurement data, including:
- Notices of all procurement over threshold values on the digital platform.
- Contract awards data, with transparency over contract values and supplier names.
- Annual spend reports on procurement activity.
- Performance data on procurement timescales and award patterns.
Search live notices on Find a Tender, the central digital platform.
Financial Thresholds Under the Procurement Act 2023
The Act establishes financial thresholds above which the full procurement rules apply. These thresholds are adjusted every two years and were updated in January 2025. Current thresholds for England are:
- Goods and services: £98,000 (previously £25,000).
- Works: £246,000 (previously £25,000).
- Social and other specific services: £184,000 (previously £25,000).
- Below these thresholds, procuring bodies have more flexibility, though many still apply the procedures voluntarily.
For care providers, domiciliary care and supported living contracts often exceed these thresholds, especially when grouped across multiple locations or time periods. Even if an individual contract is below threshold, bundling multiple years means the full thresholds apply.
Social Value Requirements and Care Procurement
The Procurement Act 2023 strengthens social value considerations. Public bodies must now assess how procurement contributes to environmental, social and economic wellbeing. For care providers, this means demonstrating beyond just providing services at the best price.
Social value considerations in care procurement include:
Employment and apprenticeship
Demonstrating commitment to training and good employment conditions for care staff.
Local supply chains:
Sourcing other goods and services from local suppliers.
Community benefit
How your services improve health and social outcomes beyond the contract.
Environmental sustainability
Care provision with reduced carbon footprint, sustainable transport and responsible procurement.
Learn more about social value in care at our dedicated resource.
Procurement Act 2023 for Care Providers
The Procurement Act 2023 changes how local authorities buy care services. Our guide explains the new rules, transparency requirements, and what care providers need to do differently when bidding for contracts.
The Competitive Flexible Procedure: Opportunity for Care Providers
One of the most significant changes for care providers is the introduction of the competitive flexible procedure. This new procedure allows bidders to submit bids in tranches or phases, rather than preparing a complete response upfront.
For domiciliary care and supported living contracts, this could mean:
Staged bidding:
Submit key information first (capability and capacity), then detailed pricing and implementation later.
Reduced preparation burden
Care providers can allocate resources more strategically across multiple bids.
Flexibility in approach
Different providers can propose different implementation routes, not just cost.
Councils have discretion to use this procedure when they determine it promotes competition and value for money. As Care Sync Experts, we help care providers understand which procedure a council is using and tailor bid responses accordingly.
Direct Award Provisions: When Full Tender is Not Required
The Act permits direct award (awarding without open competition) in specific circumstances. For social care, this applies when:
- No bids were received in a previous open or competitive flexible procedure.
- Technical or artistic reasons mean only one supplier can provide the service.
- Extreme urgency prevents following standard procedures.
- Additional services are required from the original supplier and a change of supplier would be disruptive.
Councils increasingly use direct award extensions for established care contracts, particularly during pressures in the care market. Understanding when councils might use direct award helps care providers maintain continuity and profitability.
How the Procurement Act 2023 Affects Domiciliary Care Contracts
The Act permits direct award (awarding without open competition) in specific circumstances. For social care, this applies when:
Domiciliary care (home care) procurement has specific characteristics that interact with the Procurement Act 2023:
- Geographic specificity: Care must be provided in specific postcodes or areas, which councils may use to justify limited tendering.
- Quality and continuity: Councils must balance cost with service quality and staff continuity, where social value assessment helps.
- Workforce planning: As care staff shortages persist, commissioners increasingly weight employment practices and staff development in procurement.
- Integration with health: Many domiciliary care contracts now form part of integrated health and social care commissioning, using joint procedures.
Our guide to domiciliary care tenders covers specific procurement strategies (read the domiciliary care tender guide).
Supported Living Tenders Under the New Act
Supported living procurement, which often involves competitive tenders for floating support services, is significantly affected by the Act's changes:
Competitive flexible procedure
Frequently used by councils for supported living due to the need for different provider models.
Social value emphasis
Councils now explicitly assess how supported living providers contribute to independence and community integration.
Innovation in commissioning
The flexibility allows councils to request innovative service models, not just traditional care delivery.
Explore supported living procurement strategy at our dedicated resource.
Procurement Act 2023 for Care Providers
The Procurement Act 2023 changes how local authorities buy care services. Our guide explains the new rules, transparency requirements, and what care providers need to do differently when bidding for contracts.
Practical Steps for Care Providers: Preparing for the Procurement Act 2023
- Step 1
Register on Find a Tender
All public procurement opportunities are now advertised on the Central Digital Platform. Care providers should:
- Create a supplier account on Find a Tender to receive tender alerts.
- Set filters for your service type (domiciliary care, supported living, etc.) and geographic areas.
- Subscribe to alerts so you receive notifications immediately when relevant tenders are published.
- Step 2
Monitor Commissioning Plans
Many councils publish annual commissioning plans or procurement forward plans. These outline anticipated tenders:
- Review local authority and NHS commissioning strategies.
- Attend commissioning workshops or stakeholder events.
- Build relationships with commissioners to understand upcoming opportunities.
- Step 3
Understand Procurement Procedures
When a tender is published, identify which procedure is being used:
- Open procedure: Be prepared for full competition; highlight differentiation and value.
- Competitive flexible procedure: Prepare staged responses; focus early responses on capability.
- Limited tendering or direct award: If you are invited, respond thoroughly to justify selection.
- Step 4
Strengthen Your Bid Writing
The Procurement Act 2023 emphasises social value and long-term outcomes. Improve your tender submissions by:
- Quantifying social value: Use data on employment, training, community outcomes and sustainability.
- Demonstrating sustainability: Show how your care model is viable long-term and meets environmental goals.
- Detailing implementation: Provide clear, costed plans for delivering service requirements.
- Highlighting innovation: Propose service improvements or innovative approaches where relevant.
How Care Sync Experts Helps With Procurement Act 2023 Compliance
Care Sync Experts specialises in supporting social care providers through the Procurement Act 2023 landscape:
Procurement strategy
We help you understand which tenders align with your organisation's capacity and capabilities.
Bid writing
Our team writes compelling bids that address evaluation criteria and maximise your chances of award.
Social value strategy
We help you articulate and evidence social value contributions that resonate with commissioners.
Compliance assurance
We ensure your bids meet all procedural and legal requirements of the new Act.
Ongoing support
From tender identification to contract start, we support successful providers through implementation.
For support with Procurement Act 2023 compliance and tender writing, contact Care Sync Experts at 0333 577 0877 or hello@caresyncexperts.co.uk.
Resources and Guidance
Authoritative guidance on the Procurement Act 2023 is available from:
- GOV.UK Procurement Guidance: https://www.gov.uk/government/collections/procurement-policy-notes
- Procurement Act 2023 Collections: https://www.gov.uk/government/collections/procurement-act-2023-guidance-documents
- Find a Tender: https://www.find-tender.service.gov.uk
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