The New Procurement Act and Its Impact on the Education Sector
Comment Piece by Tim Warneford.
A Labour government is often associated with increased scrutiny of public sector spending. Given the fiscal challenges inherited in July 2024, there is heightened pressure to ensure value for money across all procurement activities.
On 24th February 2025, the Procurement Act 2023 came into force in the UK, replacing the Public Contracts Regulations (PCR) 2015. From this date, all contracting authorities must comply with new regulations and publish data on procurement and contract activities.
At Warneford Consulting, we are committed to helping schools navigate the new rules and maximise the benefits of these new regulations.
Below, we highlight key changes to help guide you through the transition.
What Has Changed?
The new regulations aim to simplify procurement processes while enhancing transparency and accountability. Some of the key changes include:
- Notifiable Procurements: Contracts below the threshold but exceeding £30,000 (including VAT) for general authorities or £12,000 (including VAT) for central government must now be publicly reported through a Procurement Notice
- Flexible Procurement Methods: New approaches provide greater adaptability to meet contract-specific needs, with quicker pre-qualification through the Central Digital Platform
- Streamlined Direct Awards: New provisions allow faster direct awards in urgent cases
- Shift from MEAT to MAT: The focus moves from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT), encouraging contracting authorities to prioritize value-based criteria over cost alone
- Enhanced Supplier Performance Transparency: Contract performance data will be more accessible to ensure better supplier accountability.
What Does This Mean for the Education Sector?
Schools and academy trusts must review their upcoming procurements for goods, services, and works to ensure compliance with the new regulations. This applies to:
- Procurements related to Condition Improvement Fund (CIF) and School Condition Allocation (SCA) spending.
- Selecting the most appropriate procurement process based on the updated requirements
- Adhering to new notice publication requirements and ensuring procurement plans are in place.
With these changes in effect, schools and trusts should start reviewing and initiating procurement processes within the next few weeks to remain compliant.
During the transition period, any procurements or contracts initiated before 24th February 2025 will continue under the PCR 2015 regulations until their designated end date.
Additionally, updates to Procurement Policy Notes (PPNs) and template documents are already being issued. We anticipate further guidance specific to the education sector in the coming months, particularly in the 2025 Academy Trust Handbook and updated Department for Education (DfE) procurement advice for CIF applications.
With an ongoing Competition and Markets Authority (CMA) investigation into potential bid irregularities, schools and trusts should exercise increased due diligence in capital expenditure procurement.
At Warneford Consulting, we have always prioritised transparent best value procurement, incorporating factors such as sustainability, life cycle costings, and social value. We welcome the move away from cost-focused procurement and toward a more holistic evaluation framework.
How Is Warneford Supporting Schools and Trusts?
To help schools and trusts transition smoothly to the new regulations, Warneford Consulting is implementing several initiatives:
- Registering with the Central Digital Platform to facilitate faster pre-selection processes.
- Reviewing and updating supply chain selection to align with the new framework, ensuring the evolving needs of schools and trusts are met.
- Supporting schools secure CIF funding by developing procurement plans to ensure timely compliance.
- Assessing current agreements and contracts to determine whether they fall under PCR 2015 or require re-procurement under the Procurement Act 2023.
- Providing guidance and signposting to help schools and trusts access professional advice.
Later in the year, we will be launching our new, compliant Dynamic Market Place, which will allow schools to conduct compliant, cost and time efficient mini tenders across a wider range of pre-vetted supply chain partners, covering all disciplines needed to deliver their capital works projects. Look out for more news on this in the forthcoming months.
Final Notes
The information provided here is based on our interpretation of the latest guidance. Schools and trusts should seek professional procurement advice from specialists or government agencies to ensure compliance and due diligence.
For further details, refer to the official guidance on Gov.UK and the Government’s Procurement Pathway website.
Tim Warneford, March 2025
