ECA welcomes Government announcement on procurement reforms

On 6 August 2026, the Electrical Contractors’ Association (ECA) welcomed the Government’s announcement that businesses bidding for public contracts will be judged more strongly on their commitment to creating high-quality jobs, tackling local skills shortages, and supporting young people into apprenticeships and work placements.

The announcement confirms that, for central government contracts worth £5 million or more, the weighting for benefits to the local community will rise from 10% to 20% from January 2027. Bidders will be able to receive additional credit for creating local jobs, paying above the legal minimum wage, treating workers fairly and offering training opportunities, including apprenticeships and work placements.

ECA has consistently argued that public procurement should secure long-term value for taxpayers and help support a more skilled, competent and productive workforce across the electrotechnical and engineering services sector.

Electrical contractors that invest in apprenticeships, competence, direct employment and workforce development should be recognised for the long-term value they create.

Public procurement is one of the strongest levers available to Government. Used effectively, it can help improve productivity, raise standards, strengthen the skills pipeline and support delivery of the UK’s infrastructure, net zero and building safety ambitions.

ECA welcomes the Government’s intention to place greater weight on jobs, skills and workforce investment within public procurement. The proposed refocusing of social value towards jobs, pay and skills is a positive step and offers an opportunity to move away from broad, difficult-to-measure commitments towards outcomes that have a tangible impact on workers, employers and local economies.

ECA also welcomes the Government’s intention to simplify requirements for smaller businesses, helping ensure that firms of all sizes can compete for public contracts and demonstrate the value they already deliver through skills, quality and employment standards.

ECA will continue to work with Government, the Joint Industry Board (JIB), Unite the Union, and industry partners to ensure these reforms create opportunities for businesses of all sizes and result in measurable improvements in skills, competence and project outcomes.

Catherine Watt, Director of Employment and Skills at ECA, said: “This is an important step in recognising the role that public procurement can play in supporting a more skilled, competent and productive workforce. Electrical contractors are central to the delivery of the UK’s infrastructure, electrification and building safety ambitions. Those firms investing in apprenticeships, competence, direct employment, and workforce development should be recognised for the long-term value they create. We welcome the Government’s decision to place greater emphasis on jobs, pay and skills, alongside steps to simplify requirements for smaller businesses. ECA will continue to work with Government, industry partners to ensure these reforms deliver measurable improvements in skills, competence and project outcomes.”

The Government announcement, published by the Cabinet Office on 5 August 2026, states that public spending should back British jobs and skills, with the new rules applying to central government procurement from January 2027.

This article originally appeared on the ECA website on 6 August 2026.

--ECA

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