How councils can buy digital services in 2026

The Procurement Act 2023 has applied to new procurements since 24 February 2025. For a council buying a digital health or care service, the route mostly depends on the contract’s value and on whether you want to use a framework.

The thresholds

From 1 January 2026 to 31 December 2027, including VAT:

• £207,720 for goods and services bought by sub-central authorities, including councils
• £135,018 for central government
• £663,540 for light touch services, which include many health and social care services

Above the threshold, the full rules of the Act apply. Suppliers must be registered on the Central Digital Platform and share their core information before they can take part.

Below the threshold

Below the threshold, a council follows its own contract procedure rules, with a few duties from the Act. For contracts worth £30,000 or more including VAT, a council that advertises openly must publish a below-threshold tender notice, and must publish a contract details notice after award. The winning supplier must be registered on the Central Digital Platform.

Since early 2026, councils can also shape who takes part in below-threshold competitions:

• The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026, in force since 4 February 2026, lets councils limit a below-threshold competition to suppliers based in the UK, or in their local area, as long as the tender notice says so.
• Government guidance also allows below-threshold competitions to be reserved for small and medium-sized enterprises (SMEs) and voluntary, community and social enterprises (VCSEs). Notices must now say whether a contract is reserved in this way.

Frameworks

A framework call-off can be quicker, but it limits you to the suppliers already on the framework. The main digital frameworks, now run by the Government Commercial Agency (the Crown Commercial Service’s name since 1 April 2026), are:

• G-Cloud 15 (RM1557.15). Live since 6 August 2026 and open for four years. It reopens to new suppliers after 18 months, around February 2028, and again after 36 months. Cyber Essentials is mandatory for software and support suppliers, and Cyber Essentials Plus for hosting.
• Digital Outcomes 7 (RM1043.9). Live since 30 January 2026 for digital delivery teams, specialists and user research, and reopens every 18 months. The next scheme is expected in 2027.
• Digital Capability for Health 2 (RM6345). Runs until 9 December 2027 with 22 suppliers.

Choosing a route: our view

For a new kind of service, such as digital support for unpaid carers, a framework call-off can shut out specialist suppliers who have not yet had the chance to join. If you want the widest field, consider:

• preliminary market engagement first, to test what the market can offer and at what cost
• an open or competitive flexible procedure for larger contracts
• for smaller pieces of work, such as a discovery or an assurance review, a below-threshold competition, reserved for SMEs if that suits your aims
• buying the digital platform separately from any face-to-face support, so software specialists and support providers can each bid for the part they do best

We are a small specialist supplier and not yet on a framework, so we are buyable through the routes above. See how to buy from us.

Sources

• PPN 023: threshold amounts from 1 January 2026
• Procurement Act 2023 guidance: below-threshold contracts
• Procurement Act 2023, section 87
• The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026
• Guidance: reserving competitions for below-threshold contracts
• Guidance: Central Digital Platform and publication of information
• GCA: G-Cloud 15 (RM1557.15)
• GCA: Digital Outcomes 7 (RM1043.9)
• GCA: Digital Capability for Health 2 (RM6345)

This article is general guidance, correct as of the date shown. It is not legal advice. Rules and frameworks change, so check the sources before relying on it.