Procurement Policy Notes (PPN)
Cabinet Office guidance notes for central government procurement teams on policy areas like social value, prompt payment, and net zero.
Definition
Procurement Policy Notes (PPNs) are guidance notes issued by Cabinet Office to central government procurement teams on specific aspects of procurement policy. Key PPNs for suppliers include PPN 02 (formerly 06/20) on social value, PPN 03 (formerly 07/23) on prompt payment, PPN 06 (formerly 06/21) on net zero, and PPN 09 (formerly 03/23) on cyber essentials. PPNs explain how evaluation criteria will be applied in practice and are essential reading before bidding for central government contracts.
How it works in practice
PPNs sit somewhere between statute and guidance: they are not law but are mandatory for in-scope central government procurements. The scope of each PPN is stated in the note itself (typically central government departments, executive agencies, and non-departmental public bodies above a stated contract value). Local authorities, NHS trusts, and other public bodies are encouraged but not required to apply PPNs; in practice many do so voluntarily as a baseline standard. Cabinet Office consolidates and renumbers PPNs periodically: the historical "PPN 06/20" on social value became "PPN 02 (Social Value)" in the 2023 reformat. Each PPN typically specifies: who is in scope, what the requirement is, how to evidence compliance in the procurement, and any required scoring weightings or pass-fail thresholds. Suppliers bidding into central government should maintain a working file of current PPNs with a one-line summary of each and the implications for their bid library. The most consequential PPNs for SME bidders are 02 (social value, 10 percent minimum weighting), 03 (prompt payment, 95 percent of invoices within 30 days), 06 (net zero, carbon reduction plan required at award), and 09 (Cyber Essentials, mandatory for personal-data handling contracts).
Common questions
Are PPNs legally binding?
They are mandatory for in-scope central government procurements but are not statute. The scope is set out in each PPN itself, typically central government departments, executive agencies, and non-departmental public bodies. Local authorities and the wider public sector adopt them voluntarily; many do as a baseline standard.
How do I keep track of current PPNs?
Cabinet Office publishes the current PPN list at gov.uk; subscribe to the Cabinet Office procurement policy update email and review the list quarterly. Major PPN changes are widely reported by procurement trade press. Keep a one-page summary of each relevant PPN in your bid library with the procurement implications for your sector.
Do PPNs apply under the Procurement Act 2023?
Yes. PPNs continue under PA 2023 as the mechanism for central government to articulate procurement policy on specific topics. The Act's wider transparency and supplier conduct regime works alongside the PPN system rather than replacing it.