UK public sector procurement spending reached £434 billion in 2024/2025, an increase of £19 billion from the previous year. The largest rise was in the health sector, with HM Treasury budgets projecting a further 13% increase in 2025/2026.
For health and social care providers—including domiciliary care, supported living organisations, patient transport, and SEND assessment services—this suggests a sustained period of contract activity. However, higher procurement spending does not automatically make opportunities more accessible for all providers.
More spending does not mean easier access
Since the introduction of The Procurement Act 2023, the tendering environment has become more transparent and competitive. Award criteria are clearer, supplier performance is scrutinised, and failure to deliver carries stronger consequences.
“The growth in health sector procurement is a real opportunity for providers, but the process remains rigorous,” said Matthew Walker, Managing Director at Executive Compass. Contracts carry complex quality requirements, tightly defined KPIs, and increasing social value weighting. Providers who underestimate the evaluation process are unlikely to succeed, regardless of delivery capability.
Focus on quality over price
Winning health sector tenders is less about offering the lowest price. Submissions are scored heavily on quality, including previous experience, day-to-day contract management, and performance measurement and reporting.
The Procurement Act 2023, effective February 2025, consolidated previous regulations into a single framework. It emphasises the most advantageous tender rather than just the most economically advantageous. This allows evaluators to consider quality, social value, and other non-price factors, supporting improved supplier performance and value for public money.
Understanding contract distribution
Authorities are increasingly reserving contracts for local or regional providers, especially in health and social care. The aim is to boost local economies, improve supply chain resilience, and enhance responsiveness and service continuity.
“Localisation is becoming a more prominent feature of health sector procurement,” says Walker. Providers with a genuine local presence should make this central to their bid narrative. Monitoring opportunities via Find a Tender or Contracts Finder, and engaging in pre-market activities, helps providers understand demand and position themselves early.
Maximising success in health sector bids
Many providers fail not due to lack of expertise, but because their submissions do not clearly evidence it against evaluation criteria.
“Structured, well-articulated responses aligned to scoring criteria can significantly improve outcomes,” Walker notes. Providers should demonstrate how their services meet key performance indicators while highlighting contributions to social value objectives, such as local employment, sustainability, and community benefits. Successful submissions explicitly link experience and operational plans to published award criteria.
Health sector procurement is forecast to continue growing. Providers who approach tendering strategically and structurally, rather than as a purely administrative exercise, will be best positioned to succeed. Professional bid support, early engagement, and careful review of localisation rules enhance competitiveness.
The evolving procurement landscape
Public procurement is becoming more transparent and performance-focused, especially in health and social care. Opportunities exist, but success depends on aligning bids precisely with evaluation priorities, not just operational strength.