Westminster Policy News & Legislative Analysis

DHSC corrects PPE supplier records; adds High Priority Lane firm

The Department of Health and Social Care has issued corrections to its 2021 account of early‑pandemic PPE procurement. In a written ministerial statement on 30 October 2025, Minister of State Karin Smyth confirmed three changes: adding LUXE LIFESTYLE LTD to the High Priority Lane list of companies awarded contracts, updating the referral origin for P1F Ltd to the FCO Donations Team, and correcting a supplier name to Inivos Ltd. The additions bring the total number of High Priority Lane award recipients to 52.

DHSC’s published account reiterates that the emergency exercise drew more than 24,000 offers from over 15,000 businesses within 14 weeks, supported by around 400 officials across dedicated workstreams including ‘UK Make’ and ‘China Buy’. Approximately 430 offers were handled via a High Priority route before all exceptional channels were closed in June 2020.

According to the department, High Priority referrals were triaged by officials against the same technical and commercial criteria as other offers, were not disclosed to suppliers, and did not guarantee a contract; it states nearly 90% of such offers were unsuccessful. It credits awarded suppliers with securing more than 5 billion PPE items, while acknowledging some incomplete record‑keeping during the surge period.

Independent scrutiny provides further detail. The National Audit Office reported in November 2020 that about one in ten suppliers in the High Priority lane (47 of 493) obtained contracts, compared with fewer than one in a hundred via the ordinary route (104 of 14,892). The NAO also found gaps in documenting referral sources and flagged an instance where a supplier was added to the High Priority lane in error; at the same time it stated it found no evidence that ministers were involved in procurement decisions.

Courts have examined the approach. On 12 January 2022, the High Court held that operation of the High Priority (often termed ‘VIP’) lane breached the equal treatment obligation under the Public Contracts Regulations 2015, though it declined declaratory relief and noted the specific contracts before the court would likely have been awarded in any event.

The corrections published on 30 October 2025 are linked to evidence assembled for Module 5 of the UK Covid‑19 Inquiry, whose public hearings on procurement ran from 3–27 March 2025. DHSC cites material in a Cabinet Office witness statement dated 5 July 2024 to explain the addition of LUXE LIFESTYLE LTD to the High Priority Lane awards list.

Financial consequences continue to be disclosed. An HM Treasury update on 2 June 2025 reported that failed pandemic‑era PPE contracts cost the taxpayer £1.4 billion, with most losses arising from non‑compliant surgical gowns and limited prospects of recovery due to warranties expiring before testing. A final report from the government’s commissioner is due by December 2025.

For contracting authorities, the legal framework has since shifted. The Procurement Act 2023 came into force on 24 February 2025, replacing the Public Contracts Regulations for new procurements and embedding a 30‑day payment term across public contracts and relevant subcontracts. From 1 October 2025, authorities must also publish six‑monthly Payments Compliance Notices on the Central Digital Platform.

Supplier standards have tightened alongside. Under the Cabinet Office’s prompt payment policy, from 1 October 2025 bidders for central government work must demonstrate they pay invoices within an average of 45 days or fewer and that at least 95% are paid within 60 days, assessed over recent six‑month reporting periods.

Taken together, the ministerial correction, NAO findings and the 2022 judgment underscore what practitioners should emphasise in any future emergency procurement: auditable referral pathways, contemporaneous decision records, clear technical assurance, and proactive conflict‑of‑interest management. With the Act’s new transparency duties now live, documentation quality will be tested against statutory reporting as well as scrutiny from auditors and inquiries.