General Procurement

Changes to procurement policy: Use of Procurement Cards

The Government has been very responsive in making changes to procurement policy to help protect suppliers, their workforce and their supply chains during the COVID-19 pandemic.

Their latest PPN: Use of Procurement Cards, is aimed at maintaining cashflow to suppliers, while also ensuring the public sector is able to access goods and services quickly.

What has been introduced with this PPN?
Procurement Cards are being highlighted as the preferred method for purchasing goods and services, and the key points from this document are:

  • Single transaction limit increased to £20,000 for key card holders
  • Monthly limit on procurement card spend set to £100,000
  • Monthly procurement card spend in excess of £100,000 is permissible to meet business needs.
  • Opening up of more purchase categories providing access to a greater range of goods and services.
  • Above points apply to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.
  • Effective immediately as of 6 April 2020

What are procurement cards?
Procurement Cards are essentially charge cards used to purchase goods and services directly. These cards allow for instant payment and avoid the need to go through any forms of purchasing processes.

What is the benefit of using Procurement Cards?
The instant transactions are the major benefit to suppliers, receiving prompt will help them to protect their business, their employees and their supply chains.

By making Procurement cards the preferred payment method and increasing their spending limits, the Government is helping contracting authorities follow the instructions set out in previous PPN: Supplier relief due to COVID-19 – which focuses on prompt payment to support businesses and protect jobs during the COVID-19 outbreak.

Where can I view the full PPN: Use of Procurement Cards?
Click here to read the full PPN on GOV.uk


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