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Procurement Act 2023

Procurement Act 2023: what suppliers and SMEs need to know

Plain-English guide to the Procurement Act 2023 for suppliers and SMEs: Central Digital Platform, PSQ, exclusions, 30-day payment and 2026 changes.

3 min readUpdated 4 October 2026By the West Gate bid team
In shortThe Procurement Act 2023 governs public procurements in England, Wales and Northern Ireland commenced on or after 24 February 2025. For SMEs, the key changes are one-time registration on the Central Digital Platform (now also needed when you win smaller notifiable contracts, from 1 April 2026), the Procurement Specific Questionnaire, clearer exclusion rules, 30-day payment terms flowing down supply chains, and published KPIs.

Register once on the Central Digital Platform

Suppliers enter core information (basic details, economic and financial standing, connected persons and exclusions) on the Central Digital Platform via Find a Tender, then share it with buyers using a share code. Keep it up to date. Since 1 April 2026, buyers must also confirm that a supplier awarded a notifiable below-threshold contract (from £12,000 including VAT for central government and NHS bodies, or £30,000 for other contracting authorities) is registered, and publish its unique identifier. For those contracts only a short basic registration is needed. This does not apply to procurements regulated by the Welsh Ministers. Our Central Digital Platform registration guide walks through it.

Selection: the PSQ and conditions of participation

Buyers use the Procurement Specific Questionnaire plus their own conditions of participation. This is where written policies are requested as evidence. See which policies tenders ask for and our PSQ guide.

Key changes that affect SMEs

  • Barriers to SMEs: contracting authorities must have regard to the barriers SMEs may face and consider whether these can be removed or reduced (s.12(4)).
  • New procedures: the open procedure and the competitive flexible procedure (s.20).
  • Exclusions and debarment: mandatory and discretionary exclusion grounds (s.57, Schedules 6 and 7) and a central debarment list.
  • 30-day payment: implied payment terms in public contracts (s.68) that also flow down to public sub-contracts (s.73).
  • KPIs: at least three KPIs for most contracts over £5m (s.52), with performance assessed and published at least every 12 months.
  • More transparency: for contracts procured from 1 April 2026, buyers publish quarterly information on payments over £30,000 (s.70), and contract performance notices have been in use since January 2026 (s.71).

Practical checklist for SMEs

  • Register on Find a Tender and complete your core supplier information.
  • Get your core policies signed, dated and current. Use the tender policy checklist.
  • Prepare evidence for exclusion questions: if something has gone wrong, document what you changed.
  • Watch Find a Tender for new opportunities. Contracts Finder still carries notices for procurements started under the old rules while it is wound down, so check both for now, and look at Crown Commercial Service frameworks.
  • Run our free tender readiness checker against your next opportunity to spot gaps early.

Frequently asked questions

What counts as an SME under the Procurement Act 2023?

Section 123 defines an SME as a supplier with fewer than 250 staff and either a turnover of £44 million or less, or a balance sheet total of £38 million or less.

Do I need to register on the Central Digital Platform for small contracts?

From 1 April 2026, if you are awarded a notifiable below-threshold contract (from £12,000 including VAT for central government and NHS bodies, £30,000 for other authorities), the buyer must obtain your unique identifier from the Central Digital Platform. A short basic registration is enough for that. Registering early, during the procurement, avoids delays. See our registration guide.

Does the Procurement Act 2023 apply in Scotland?

Not to devolved Scottish authorities, which follow Scottish procurement law and use the Single Procurement Document (SPD). The Act applies in England, Wales and Northern Ireland, with Welsh devolved procurements using their own Wales Procurement Specific Questionnaire.

Does the Act guarantee 30-day payment for subcontractors?

Public contracts include implied 30-day payment terms (s.68), and these also flow down to public sub-contracts in the supply chain (s.73). Check your sub-contract terms.

Sources

General information, not legal advice. Always follow the tender documents and take legal advice where needed.

Keep reading

Related guides

Procurement Act 2023Central Digital Platform registration: a guide for suppliers

How to register your business on the Central Digital Platform (Find a Tender), the supplier information you need, share codes and the April 2026 rules.

Selection stageProcurement Specific Questionnaire (PSQ) explained for suppliers

What the Procurement Specific Questionnaire asks under the Procurement Act 2023, how it replaced the PQQ and SQ, and the evidence to prepare.

Why public-sector contracts

How government contracts help you grow

Public buyers spend at scale, pay on set terms and award work that can run for years. Here is what that can mean for your sales and cashflow.

04 SME opportunity

Built to open doors for smaller firms

  • LotsBuyers must consider splitting contracts into lots, or explain why not.
  • Fewer barriersBuyers must have regard to the barriers SMEs face and consider how to reduce them.
  • SME spend targetsCentral government departments must set a three-year target for direct spend with SMEs, from 1 April 2025, and publish results each year.
  • One place to lookOpportunities are published on Find a Tender and Contracts Finder, both searchable in our free tender search.

Sources: Procurement Act 2023, s.18 duty to consider lots and s.12(4) (legislation.gov.uk); Cabinet Office, PPN 001: SME and VCSE procurement spend targets (GOV.UK, 2025).

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02 Cashflow

Paid on set terms, often for years

Invoice Within 30 days Paid

Every public contract carries an implied term that a valid, undisputed invoice is paid within 30 days. Frameworks can run for up to 4 years as standard, so one award can mean repeat revenue you can plan around.

Sources: Procurement Act 2023, s.68 implied payment terms and s.47 frameworks: maximum term (legislation.gov.uk). Exceptions apply, for example concession contracts and contracts awarded by schools.

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