HomeUK Offset Policy

The UK Offset Policy

On 30 October 2026 the Ministry of Defence published the UK Offset Policy. An overseas supplier that wins a large UK defence contract will commit to deliver UK value equal to the contract, through projects agreed with a new Offset Authority. These are the main points.

Read the policy on GOV.UK Talk to Capital

The main points

WhenPublished on 30 October 2026. The Ministry of Defence expects to apply Offset to procurements from 2027, once its Offset Authority is in place.
WhoOverseas suppliers of defence and security equipment, services and support. It may also apply to a UK-registered supplier where a significant part of the work comes from abroad.
ThresholdContracts worth £50 million or more. Related contracts may be added together over up to five years.
ObligationNormally 100% of the contract value, set out in a separate Offset Agreement signed before the main contract. The projects are agreed afterwards.
TimescaleUp to ten years, with milestones of 30% by Year 3, 50% by Year 5 and 100% by Year 10.
What countsDirect and indirect Offset, including contracts with UK companies, technology and know-how transfer, research and development with UK industry and universities, investment, maintenance and support capability, skills and exports.
ApprovalEvery project needs the Offset Authority's written approval before it starts, and must be additional to normal business.
ValueCredit is based on the UK value added, not simply the value of the contracts placed.
MultipliersExtra credit for priority locations, activities and sectors, such as regional growth, technology transfer, skills, smaller companies and sovereign capability. Details are to be published.
CreditsAwarded after delivery and checking. Suppliers report each year by 31 March. Credits can be banked, normally for five years.
RemediesA last resort. Compensation for a missed milestone is normally at least 10% of the shortfall.
TransparencyA public list of the companies with Offset agreements and the value they still have to deliver.

A summary, not legal advice. The policy on GOV.UK is the authority. Further guidance, including the multipliers and the Offset Authority's procedures, is due to be published.

What it means

For overseas suppliers

Plan early. You will need UK partners that can make your parts now, and partners that could with your support, with evidence of where and how they work in the UK. The platform finds both, and Capital's advisory team can help with Offset strategy, project proposals and credit claims.

For UK companies

The policy opens supply chains to UK primes, mid-tier companies, SMEs, universities and research organisations. Overseas suppliers will be looking for capable UK partners. How UK companies are included.

Discuss the policy with others working on it at the UK National Offset Council (UK-NOC).

Preparing a UK bid or an Offset plan?

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