Procurement Act year two

More than a year after go-live, Procurement Act year two is telling us a lot about where the sector is. More than one in five of the procurement teams we surveyed still haven’t awarded a single contract under the Procurement Act 2023. More than a year after go-live, that tells you a lot about where the sector is. The new rules are in force across England and Wales, but plenty of teams aren’t yet confident enough to use them.

As head of consultancy at PfH, I put a set of questions to more than 40 housing associations and local authorities to find out how the first year had gone. Their answers point to three pressures that will shape year two: confidence, capacity and governance. Here’s what we found, what I’d do about each, and what’s different if you’re buying in Wales.

A quick reminder of what changed

The Act swapped the five procedures under the Public Contracts Regulations 2015 for two. It set out to open the door to smaller suppliers, drive better performance through stronger reporting, and give buyers more commercial freedom to create value. On paper, that’s a better toolkit. In practice, a toolkit only helps if people feel able to pick it up.

Why familiar routes still feel safer

Low confidence is a big part of why teams are holding back. Many still have practical questions about how the rules work day to day. So they’re sticking with frameworks and dynamic purchasing systems set up under PCR15, where the process feels known.

There’s a skills gap behind this too. The Act puts far more weight on transparency and on engaging the market early. Both call for abilities that haven’t always sat at the centre of a procurement role, such as negotiation and data reporting. It’s a lot to pick up on the job while running a full pipeline.

The answer is practical support. That means training on the legislation itself, plus specialists in procurement, law and commercial matters who can answer the awkward questions as they come up. When people know who to ask, they make decisions with more conviction.

The admin load has grown

Under the old regime, a procurement usually involved two to four notices. Run an open or competitive flexible procedure under the Act and you could be publishing as many as nine, before you add the new reporting duties. For English contracting authorities, lower thresholds from January 2026 have brought more contracts into scope. Most teams are also still running some procurements under PCR15 alongside new ones under the Act.

Teams are growing, but not quickly enough to keep pace. Our survey found 35% of procurement teams are bigger than they were a year ago, and 40% expect to grow again in the next 12 months. Even so, 47.5% say they don’t have enough people, and capacity came out as their top challenge. Strategic work is what suffers first, and smaller housing organisations are feeling it most.

That makes year two a question of where you invest. Getting the right mix of people across procurement and contract management will do more for you than any single new hire.

What’s different in Wales

The Procurement Act applies in Wales too, but Welsh housing teams are working to a slightly different rulebook. The Procurement (Wales) Regulations 2024 sit underneath the Act and fill in the detail for devolved Welsh authorities. If your team learned the Act from English guidance, it’s worth checking where the Welsh version departs from it.

Some differences are about process. Notices go through Sell2Wales, which then feeds the central digital platform, so that route needs to be built into your templates and timelines. Devolved Welsh authorities also follow the Wales Procurement Policy Statement instead of the National Procurement Policy Statement.

Others lighten the load. There’s no requirement to publish contracts worth more than £5 million, or to name unsuccessful suppliers in award notices above that value. For contracts below the thresholds, Welsh buyers can still use a pre-qualification stage to check suppliers are suitable.

The catch is that these differences don’t always follow you. When a Welsh organisation buys through a framework or dynamic market set up by a body outside Wales, the standard UK rules can apply to that procurement instead. Teams need to know which set of rules they’re working to before they start. That’s one more question for people who are already stretched.

Welsh councils that hold housing have an extra layer. The socially responsible procurement duties in the Social Partnership and Public Procurement (Wales) Act 2023 are now in force for the bodies the Act covers. Those bodies must:

• set and publish procurement objectives
• prepare a procurement strategy
• consider social public works clauses in major construction contracts over £2 million
• report each year on how their objectives have been met

Housing associations aren’t among the bodies covered by those duties, but their council partners are. That shapes joint programmes and shared supply chains.

None of this changes the three priorities. If anything, it makes confidence and clear governance more important. Welsh teams have more variations to keep track of while delivering the same pressured programmes, including work towards the Welsh Housing Quality Standard.

Governance that stands up to scrutiny

Three quarters of the organisations we surveyed have updated their policies for the Act. That sounds reassuring until you see that 43% say they’ve still got work to do before they’re compliant. Procurement decisions are more visible than ever to suppliers and residents, so those changes can’t wait.

Good governance does two jobs at once. It builds credibility, and it lowers the risk of a legal challenge. The organisations in the best shape use structured, repeatable processes and consistent documentation, so every procurement follows the same route and leaves the same trail.

Contract management is part of this. The Act puts it firmly in the spotlight, and it draws in finance, service managers and suppliers as well as procurement. Everyone needs to know what they own and what’s expected of them.

Five things to do in year two

• Standardise your templates. One set of procurement templates, used every time, saves effort and keeps your paperwork consistent.
• Write guidance for colleagues outside procurement. Keep it short and easy to follow, so budget holders and service managers can play their part without guesswork.
• Make ownership explicit. Set out who’s accountable at each stage, including contract management once the contract is awarded.
• Invest in confidence. Pair training on the legislation with expert support, so your team feels able to use the new procedures instead of falling back on old ones.
• If you buy in Wales, map your rulebook. Note where the Welsh Regulations apply and where the standard rules apply. If you’re a council, also note how the socially responsible procurement duties fit in.

From compliant to confident

Just over eight in ten people we surveyed think procurement is more highly regarded across the sector than it was in 2025. That’s welcome. But the word most commonly linked with procurement is still “compliant”.

Oversight and assurance will always matter. For procurement to earn recognition as a strategic function, though, teams need the conviction to use the tools the Act gave them. That’s where the extra value comes from, and social landlords need it right now.

What’s the one thing holding your team back from running more procurements under the Act?

Guy Stapleford is Head of Consultancy Services at Procurement for Housing (PfH)

This article is based on an opinion piece published in Public Finance.

How PfH can help

Procurement consultancy. We can review your policies and governance, provide compliant templates and tailored training, or add outsourced procurement support when your team is stretched.

Procurement compliance checklist. A quick way to spot gaps in how your team is applying the Procurement Act 2023.

The contract lifecycle guide. Practical guidance on managing contracts after award, where the Act now asks far more of you.

Member Insight Report 2026. The full findings from our survey, so you can see how your team compares.

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Sources:

Welsh Government, Procurement reform in Wales, August 2024

Welsh Government, Procurement Act 2023 guidance: below-threshold contracts

Muckle LLP, Procurement thresholds 2026

PfH, Member Insight Report 2026