If you sell to schools, you will eventually hear phrases such as:
“We need three quotes.”
“This has to go through procurement.”
“We need to run a tender.”
“The value is above our threshold.”
For a small supplier, this can make school purchasing sound much more complicated than it really is.
The first thing to understand is that there is no single school procurement threshold.
Several different numbers may matter:
- the school's own internal spending limits;
- the academy trust or local authority's procurement rules;
- the value at which a school chooses to seek several quotes;
- the much higher statutory thresholds under the Procurement Act 2023;
- special thresholds for particular types of contracts.
These numbers do different jobs.
A £15,000 purchase may need several quotations under a school's internal policy even though it is nowhere near the statutory public procurement threshold.
Likewise, a supplier hearing that “anything over £10,000 has to go to procurement” should not assume there is a UK law requiring every school purchase over £10,000 to undergo a national tender.
Often, the school is describing its own approval process.
This guide explains the procurement thresholds small school suppliers are most likely to encounter, the current 2026 figures and what they mean when you are trying to win business from individual schools and multi-academy trusts.
First understand the difference between an internal threshold and a legal threshold
This is the distinction that causes the most confusion.
Internal procurement thresholds
Schools and academy trusts normally have financial policies setting out who can approve spending and what purchasing process must be followed at different values.
A policy might say, for example:
- small purchases can be made directly;
- larger purchases require written quotations;
- higher-value purchases require a formal tender;
- very large contracts require trust board, governing body or senior approval.
The exact numbers vary.
These are organisational controls.
They do not mean that every school in England operates the same way.
Statutory procurement thresholds
At much higher contract values, the Procurement Act 2023 becomes important.
The thresholds applying from 1 January 2026 to 31 December 2027 include:
- £207,720 including VAT for ordinary goods and services contracts awarded by sub-central contracting authorities;
- £5,193,000 including VAT for ordinary works contracts;
- £663,540 including VAT for most light-touch contracts.
The Cabinet Office confirms that these thresholds apply for the 2026–2027 period and that the figures are calculated including VAT. ([gov.uk](https://www.gov.uk/government/publications/procurement-act-2023-guidance-documents-define-phase/guidance-thresholds-html?utm_source=chatgpt.com))
For most small suppliers selling ordinary products or services to schools, the £207,720 goods-and-services threshold is the figure they are most likely to hear about at the statutory level.
But in practice, a school's own procurement process will usually become relevant long before a purchase reaches £207,720.
The current 2026 procurement thresholds suppliers should know
The Procurement Act thresholds were revised from 1 January 2026.
They are scheduled to apply until 31 December 2027 before the next routine adjustment.
Ordinary goods and services
For contracts awarded by a sub-central government authority, the current threshold is:
£207,720 including VAT.
This category covers many ordinary contracts for:
- software;
- equipment;
- educational resources;
- consultancy;
- maintenance;
- professional services;
- furniture;
- technology;
- other supplies and services.
Central government authorities have a lower goods-and-services threshold of £135,018 including VAT, but schools will generally be dealing with the sub-central figure rather than the central-government figure. ([gov.uk](https://www.gov.uk/government/publications/ppn-023-2026-threshold-amounts/ppn-023-2026-threshold-amounts-html?utm_source=chatgpt.com))
Works contracts
The current ordinary works threshold is:
£5,193,000 including VAT.
Works can include substantial construction projects such as:
- new buildings;
- major extensions;
- large refurbishment projects;
- structural works.
Do not assume that every maintenance or installation contract is automatically a works contract. Contract classification can become technical, particularly where supplies, services and works are combined.
Light-touch contracts
The current threshold for most light-touch contracts is:
£663,540 including VAT.
The light-touch regime covers specified services rather than every type of school purchase. Some education, health, social and related services can fall within this category.
If your service might be covered, the school or trust's procurement team should determine the correct treatment.
The thresholds include VAT
This is important because suppliers sometimes compare a VAT-exclusive quote with the statutory threshold.
The Procurement Act thresholds are expressed including VAT. ([gov.uk](https://www.gov.uk/government/publications/procurement-act-2023-guidance-documents-define-phase/guidance-thresholds-html?utm_source=chatgpt.com))
Do not confuse DfE purchasing bands with Procurement Act thresholds
The Department for Education provides practical guidance to schools about purchasing at different values.
As of 2026, DfE generally describes school purchases as:
- low value: under £10,000;
- medium value: £10,000 to £40,000;
- high value: over £40,000.
DfE is clear that schools should still check their own procurement rules because individual schools, academy trusts and local authorities may set different limits. ([gov.uk](https://www.gov.uk/guidance/buying-procedures-and-procurement-law-for-schools?utm_source=chatgpt.com))
These £10,000 and £40,000 figures are therefore useful purchasing bands.
They are not replacements for the statutory Procurement Act threshold.
Think of them as different layers
A simplified example might look like this:
£3,000 purchase: potentially handled through a relatively simple internal buying process.
£15,000 purchase: likely to require more evidence of value for money, often including competing quotes depending on policy.
£60,000 purchase: likely to involve a more structured procurement exercise.
£220,000 ordinary services contract: now potentially above the current statutory threshold and therefore subject to the fuller Procurement Act regime.
The exact route depends on the buyer, contract and available frameworks.
Every school or trust can have its own purchasing rules
This is why two schools can treat the same £12,000 purchase differently.
One school may require:
- three written quotations;
- school business manager approval;
- a purchase order.
Another may be part of a trust requiring:
- use of an approved framework;
- central procurement approval;
- a mini-competition;
- trust finance director sign-off.
Neither process necessarily means the other school is doing something wrong.
Small suppliers should ask about the process early
A useful question is:
“If you wanted to proceed at this value, what procurement or approval process would you need to follow?”
That question is much better than:
“Can you just buy it?”
Find out who controls the procurement
Depending on the organisation, the decision may sit with:
- the individual school;
- school business manager;
- headteacher;
- finance manager;
- academy trust procurement team;
- trust chief financial officer;
- local authority;
- central purchasing organisation.
The AllSchools guide Who Buys Products and Services in UK Schools? explains how the relevant decision-maker changes according to what you sell.
Schools have a special position for below-threshold procurement
This part of the Procurement Act is easy to misunderstand.
The Act contains specific rules for certain contracts below the full statutory thresholds.
However, schools are expressly exempt from the Procurement Act's Part 6 regulated below-threshold provisions.
Official Cabinet Office guidance confirms that procurement by a “school”, as defined in the Act, remains exempt from those below-threshold rules. The statutory definition includes governing bodies of maintained schools and the proprietors of academies. ([gov.uk](https://www.gov.uk/government/publications/procurement-act-2023-guidance-documents-define-phase/guidance-below-threshold-contracts-html?utm_source=chatgpt.com))
Why this matters to suppliers
You may read general public-sector procurement guidance saying that certain contracting authorities must publish notices for contracts worth £30,000 or more.
Do not automatically assume that means every school contract above £30,000 must be advertised in exactly that way.
The school exemption matters.
Schools still need to:
- follow their own procurement policies;
- manage public money properly;
- demonstrate appropriate value for money;
- follow relevant trust, local-authority or funding requirements;
- comply with the full Procurement Act where the relevant statutory threshold is reached.
But the general Part 6 below-threshold notice regime does not apply to procurement by schools in the same way it applies to many other contracting authorities. ([gov.uk](https://www.gov.uk/government/publications/the-official-procurement-act-2023-e-learning/module-1-scope-definitions-and-general-principles?utm_source=chatgpt.com))
Contract value means the total expected contract, not just one invoice
This is another area where suppliers can accidentally underestimate procurement value.
Imagine you sell software for £50,000 per year.
You might think:
“£50,000 is nowhere near £207,720.”
But what if the proposed contract lasts five years?
The estimated contract value could be around:
£250,000 including the full contract period, before considering other relevant elements.
That changes the procurement position.
Schools do not normally look only at the first year's cost
Contract valuation may need to consider:
- the full contract term;
- extensions;
- renewal options;
- expected volumes;
- optional purchases;
- VAT;
- the overall requirement.
The buyer should determine the proper estimated contract value before choosing the procurement route.
This is especially important for subscription businesses
Suppliers of:
- software;
- managed IT;
- catering;
- cleaning;
- staffing;
- maintenance;
- multi-year professional services;
should think in terms of contract value rather than monthly or annual price alone.
The AllSchools guide How Long Does It Take to Sell to a School? explains why larger and multi-year contracts generally create longer approval processes.
Schools cannot simply split a purchase to avoid procurement rules
Suppose a school wants £240,000 of similar equipment.
It would be wrong to assume that dividing it into four separate £60,000 orders automatically keeps every purchase below the statutory threshold.
Procurement rules consider the estimated value of the overall contract or requirement.
Artificial splitting is different from genuine separate needs
A school may legitimately make separate purchases where requirements are genuinely separate.
But an organisation should not divide one foreseeable procurement merely to avoid applying the rules that would otherwise apply.
This also matters to suppliers.
Do not suggest:
“Why don't you just split it into smaller invoices so you don't have to tender?”
That is unlikely to build confidence in your understanding of public procurement.
Frameworks can change the buying route completely
Schools do not always need to run a completely new competition from scratch.
They may be able to buy through an existing framework agreement.
What is a framework?
A framework is an arrangement through which contracting authorities can buy from suppliers that have already been selected through an appropriate procurement process.
Depending on the framework, a school might:
- place a direct award;
- run a further or mini-competition between framework suppliers;
- select from defined products or services.
The rules depend on the particular framework.
Why this matters to small suppliers
If schools frequently tell you:
“We can only buy this through our framework,”
then getting onto relevant frameworks may be more valuable than sending another thousand cold emails.
But do not assume every school must use a framework.
DfE's school-buying guidance presents frameworks as one of several possible purchasing routes, depending on the requirement and value. ([gov.uk](https://www.gov.uk/guidance/buying-procedures-and-procurement-law-for-schools/find-the-right-route-to-buy?utm_source=chatgpt.com))
If you sell to academy groups, see How to Get Onto a MAT Preferred Supplier List and What Approved Supplier Status Actually Means in a MAT.
Three quotes are usually an internal rule, not a universal legal requirement
Small suppliers frequently hear:
“We need three quotes.”
This is perfectly normal.
But it does not mean there is one piece of UK legislation saying every school purchase above a particular figure must have exactly three quotes.
The requirement usually comes from financial controls
A school's policy may set different requirements such as:
- one quote below a certain amount;
- two or three written quotes above that level;
- a tender above a higher value;
- additional approval for capital purchases.
The numbers vary between organisations.
Do not try to prevent the school seeking competition
If the buyer says they need three quotations, help them complete the process.
Make your quote:
- clear;
- complete;
- easy to compare;
- valid for a reasonable period;
- explicit about VAT;
- clear about implementation and recurring costs.
The AllSchools guide What to Include in a School Supplier Quote explains how to make quotations easier for schools to approve internally.
A higher-value purchase usually involves more people
Procurement thresholds affect more than paperwork.
They often change the buying committee.
A £2,000 purchase might involve one budget holder
For example, a department head may have delegated authority to buy small resources.
A £20,000 purchase may bring in finance
The school may need:
- comparative quotations;
- budget confirmation;
- business manager approval;
- additional documentation.
A £70,000 purchase may involve formal procurement
You may now encounter:
- technical specifications;
- scored bids;
- formal deadlines;
- multiple stakeholders;
- contract review;
- trust approval.
A contract above the statutory threshold becomes a different exercise
The Procurement Act's full requirements may now apply, subject to the nature of the contract and any relevant exclusions or purchasing arrangements.
For small suppliers, this means your sales process should become more sophisticated as contract value rises.
A persuasive sales email is not enough to win a large formal tender.
MATs can turn a small-school opportunity into a large contract
This is particularly important if you target multi-academy trusts.
Imagine your service costs:
£8,000 per school per year.
That looks like a relatively modest school purchase.
But a trust with 30 schools considering a trust-wide contract could represent:
£240,000 per year.
That is a completely different procurement proposition.
Trust-wide purchasing can move the decision centrally
The buyer may become:
- trust procurement;
- the CFO;
- central operations;
- IT director;
- estates director;
- executive leadership.
The sales cycle may become longer
A trust-wide agreement may require:
- a formal specification;
- procurement planning;
- budget approval;
- stakeholder consultation;
- a framework or competitive procedure;
- legal review;
- implementation planning.
This is why suppliers should understand whether they are selling to one school or trying to create an organisation-wide agreement.
The AllSchools guide MATs vs Individual Schools: Who Should Suppliers Target First? explores the commercial differences.
Be ready for procurement before the school asks
A small supplier can look much more established simply by having the common procurement information ready.
Depending on your offer, prepare
- formal company details;
- Companies House number where applicable;
- VAT details;
- insurance certificates;
- data-protection information;
- safeguarding information where relevant;
- DBS arrangements where appropriate;
- health and safety documentation;
- modern slavery information where applicable;
- cybersecurity documentation;
- references or case studies;
- terms and conditions;
- clear pricing;
- implementation plan.
Not every supplier needs every document.
A company selling pencils will face different checks from a company providing cloud software containing pupil data.
But waiting until procurement starts before creating basic company documentation makes the process slower.
See the AllSchools School Supplier Compliance Checklist and What Documents Should a School Supplier Have Ready?.
What small suppliers should ask during a sales conversation
You do not need to become a procurement lawyer.
You do need to ask the right commercial questions.
Ask about total expected value
“Would this be a one-year contract or are you considering a multi-year agreement?”
Ask who is purchasing
“Would the contract sit with the school or centrally with the trust?”
Ask about the approval route
“What procurement process would you normally need to follow for a purchase at this value?”
Ask about frameworks
“Are you required to purchase this through an existing framework?”
Ask about timing
“When would the procurement need to begin if you wanted this in place for September?”
Ask what documentation will be needed
“Is there supplier due diligence we can prepare now?”
These questions make you easier to buy from.
They also prevent you spending three months pursuing a deal that cannot be purchased in the way you expected.
Frequently asked questions
What is the school procurement threshold in 2026?
There is no single threshold. For ordinary goods and services covered by the Procurement Act 2023, the relevant sub-central public-contract threshold is £207,720 including VAT from 1 January 2026 to 31 December 2027. Schools and trusts can also have much lower internal purchasing thresholds.
Is £10,000 a legal school procurement threshold?
No universal £10,000 statutory threshold applies to every school purchase. DfE currently describes purchases below £10,000 as low value for its school-buying guidance, but schools must follow their own procurement rules.
What happens when a purchase is over £40,000?
DfE generally describes school purchases above £40,000 as high value and recommends a more formal buying route where an appropriate framework is not being used. This does not mean £40,000 is the full Procurement Act statutory threshold.
What is the current statutory goods and services threshold?
For sub-central contracting authorities, the ordinary goods-and-services threshold is £207,720 including VAT for procurements commencing from 1 January 2026 through 31 December 2027.
Does the threshold include VAT?
Yes. Current Procurement Act threshold values include VAT.
Does a school always need three quotes?
No universal law requires exactly three quotations for every school purchase. Three-quote requirements commonly come from the school's, trust's or local authority's internal financial regulations.
Can a school buy directly from one supplier?
Potentially, depending on value, its internal policies, the contract and the procurement route available. Small direct purchases are common, but higher-value requirements generally involve more competition and approval.
Can a school split an order to stay below a threshold?
A buyer should not artificially split a foreseeable requirement simply to avoid the procurement rules that would otherwise apply. Contract value needs to be assessed appropriately across the expected requirement.
Does a multi-year contract use the annual value?
Not necessarily. Procurement valuation generally considers the expected total contract value, including the contract term and relevant options or extensions. A £50,000 annual contract can therefore become a much larger procurement when awarded for several years.
Do schools have to advertise every contract over £30,000?
No. Schools have a specific exemption from the Procurement Act's Part 6 regulated below-threshold provisions. Do not apply general £30,000 below-threshold public-sector advertising rules automatically to every school procurement.
What is a framework agreement?
A framework is an existing procurement arrangement through which eligible buyers can purchase from pre-selected suppliers, sometimes through a direct award and sometimes through a further competition.
Does being on a preferred supplier list guarantee work?
No. Approved or preferred supplier status generally means the supplier can be considered or used under particular arrangements. It does not necessarily guarantee orders.
Are academies covered by public procurement rules?
Academies can fall within the Procurement Act's definition of schools and contracting authorities. The Act specifically includes academy proprietors within its definition of a school for relevant school exemptions. Formal procurement requirements can still apply when the relevant public-contract threshold is reached.
Should a small supplier worry about procurement law?
You should understand the basics, particularly if you pursue high-value or trust-wide contracts. For ordinary smaller deals, it is usually more important to understand the buyer's internal procurement process, provide good documentation and make your offer easy to compare and approve.
The biggest mistake small suppliers make with school procurement is looking for one magic number.
There isn't one.
A school may require several quotations at £10,000 because its internal policy says so.
A trust may insist on a framework at £50,000.
An ordinary goods or services contract may reach the current statutory Procurement Act threshold at £207,720 including VAT.
A construction contract operates under a very different threshold.
And a £20,000 annual subscription may turn into a much larger procurement once several schools and multiple years are included.
Instead of asking:
“What is the procurement threshold?”
ask:
“What procurement route does this organisation need to follow for this total contract value?”
That is the question that actually helps you sell.
Understand the value. Understand who is buying. Find out whether a framework is involved. Ask about approval early. Have your documentation ready.
Then treat procurement as part of the sales process rather than an obstacle that appears after the school has already decided it wants to buy.
