Public sector frameworks in 2026: What's changing and what SMEs should do next

If you sell to the public sector or you're thinking about it, frameworks matter more than they used to.

In 2025 alone, over 21,000 public sector contracts were awarded via frameworks, dynamic markets or DPSs with total value above £46 billion.

That's a lot of spend routed through agreements you can only access if you're on the right lists. And with more than 4,000 live frameworks out there, it's also easy to waste time chasing the wrong ones.

Tussell's new Public Sector Procurement Frameworks Report pulls together the key trends and the practical implications for suppliers. Here are the parts most relevant to small business owners and entrepreneurs.

Framework usage keeps rising, even in places you wouldn't expect

Public sector buyers are under pressure to buy faster and manage budgets tightly. Frameworks and similar routes help them do that, so usage is trending up across markets.

A good example is construction, a sector that historically relied less on frameworks. The report shows that 27% of public sector construction contracts were awarded via a framework or DPS in 2024, close to double the share four years earlier.

For suppliers, the message is simple – a framework strategy is no longer optional admin work. It's part of route to market.

Bigger suppliers are getting more out of frameworks and that has knock-on effects

The report highlights how effectively large suppliers use frameworks, using the UK government's strategic suppliers as a benchmark group.

In the 2024/2025 financial year, over half of the 2,871 contracts won by the government's 39 strategic suppliers were awarded via a framework agreement.

That's more than twice the wider public sector average of 26% and well above the SME average of 20%.

This isn't a reason for smaller firms to disengage. Instead, they should look to be deliberate.

If frameworks are a major route to market for the biggest players, they're also where competition is organised and where buyers are comfortable buying.

VCSEs are still underrepresented on frameworks

There's a specific warning sign for VCSEs (voluntary, community and social enterprise organisations) and, more broadly, for anyone who relies on smaller contract sizes or local relationships.

The report notes that VCSEs secure only 12% of their contract volume via frameworks compared with 30% for non-VCSE suppliers in the same comparison.

It also flags that central government departments will set VCSE spending goals for the 2025/2026 financial year which makes this gap harder to ignore.

If you're a VCSE supplier, it's worth treating frameworks as a capability gap to close. If you're a prime contractor, it's also a signal that your supply chain approach may need to do more than just "include SMEs" on paper.

SMEs are using frameworks more, especially in tech

While large firms still lead, SMEs are shifting towards frameworks as a core route to market in several areas.

One striking stat in the report: tech SMEs now win 44% of their local government contracts by value via frameworks, up from 8% in the 2019/2020 financial year.

The report also notes that most new central government and NHS SME tech contracts are now awarded via frameworks too.

If you've avoided frameworks because they felt too complex or reserved only for "big companies", the market is moving anyway.

The practical question becomes which frameworks are worth the effort for your stage of growth.

Choosing frameworks is becoming a strategy problem, not a compliance problem

A recurring theme in the report is that "being on a framework" isn't a meaningful goal on its own. What matters is being on the frameworks your target buyers actually use.

A few useful points the report makes:

• Different buyer types use different frameworks, even for the same category. Recruitment is the example used, where NHS, central government and local government each have different leading frameworks by value and volume.

• Many high-value frameworks are effectively narrow. Some are single-buyer frameworks that only ever get used by one organisation or a tight cluster. The report gives FCDO Services' Professional Services Framework as an example that has only been used by FCDO and its arm's-length bodies.

• Framework strategy should match your service line. Even within tech, the top frameworks differ depending on whether you're an IT reseller, IT services, cloud and data, telecoms or another service line.

This is where many smaller suppliers lose time. They join what looks like a "big" framework, then realise it doesn't connect to their real buyers or their deal sizes.

The Procurement Act is changing the shape of frameworks

The report points to February 2025 as a structural shift.

The Procurement Act introduced open frameworks that can run up to eight years and allow suppliers to join at least twice during the framework's lifetime.

It also reinforces dynamic markets and DPS-style routes that remain open to new suppliers throughout their lifecycle.

And it highlights a bigger focus on preliminary market engagement. In practice, that means more opportunity for suppliers to shape requirements before a framework or call-off hits the market, if you're watching for the right signals and showing up early.

For SMEs, that timing point matters. You don't want to first hear about a framework when the tender drops and the clock starts.

What to do with this as a small business

If you want a straightforward way to act on the report's insights, these steps are a good starting point:

1. Pick your buyers first, then work backwards. Start with 10 to 20 organisations you actually want to sell to and map which frameworks they really award through.

2. Filter frameworks by deal shape, not just category. Look at typical call-off values and contract volumes so you don't lock yourself into a route where the work is consistently out of reach.

3. Build a joining pipeline. Treat frameworks like a calendar. Track what's live, what's reopening and what's expected to launch so you can plan bid capacity.

4. Watch for early signals. PME notices and other pre-tender activity can give you time to prepare, partner or influence how a framework is structured.

5. Use partnerships on purpose. If key frameworks are dominated by primes, look for suppliers already winning through them and build a partner plan that is specific to the buyers you want.

Reading the full report

This post only covers the headline findings.

The report includes the charts, examples and practical context behind them, including how framework usage is shifting by sector and buyer type, and what the Procurement Act changes mean in real terms for suppliers.

If public sector procurement is on your growth plan for 2026, it's worth reading the full document end to end.

Download the report now

Take your next step

Public sector contracts aren't just for the big players. With the government actively encouraging SMEs to take part, your business could be exactly what buyers are looking for. Register now