diff --git a/src/main/java/gov/cabinetoffice/gap/applybackend/dto/api/CreateQuestionResponseDto.java b/src/main/java/gov/cabinetoffice/gap/applybackend/dto/api/CreateQuestionResponseDto.java
index 1e587377..63bd1372 100644
--- a/src/main/java/gov/cabinetoffice/gap/applybackend/dto/api/CreateQuestionResponseDto.java
+++ b/src/main/java/gov/cabinetoffice/gap/applybackend/dto/api/CreateQuestionResponseDto.java
@@ -14,4 +14,5 @@ public class CreateQuestionResponseDto {
     private String questionId;
     private String response;
     private String[] multiResponse;
+    private Boolean shouldUpdateSectionStatus;
 }
diff --git a/src/main/java/gov/cabinetoffice/gap/applybackend/service/SubmissionService.java b/src/main/java/gov/cabinetoffice/gap/applybackend/service/SubmissionService.java
index 65465967..1446b607 100644
--- a/src/main/java/gov/cabinetoffice/gap/applybackend/service/SubmissionService.java
+++ b/src/main/java/gov/cabinetoffice/gap/applybackend/service/SubmissionService.java
@@ -122,12 +122,16 @@ public void saveQuestionResponse(final CreateQuestionResponseDto questionRespons
 
         if (questionResponse.getResponse() != null) {
             submissionQuestion.setResponse(questionResponse.getResponse());
-            submissionSection.setSectionStatus(SubmissionSectionStatus.IN_PROGRESS);
+            if (questionResponse.getShouldUpdateSectionStatus()) {
+                submissionSection.setSectionStatus(SubmissionSectionStatus.IN_PROGRESS);
+            }
         }
 
         if (questionResponse.getMultiResponse() != null) {
             submissionQuestion.setMultiResponse(questionResponse.getMultiResponse());
-            submissionSection.setSectionStatus(SubmissionSectionStatus.IN_PROGRESS);
+            if (questionResponse.getShouldUpdateSectionStatus()) {
+                submissionSection.setSectionStatus(SubmissionSectionStatus.IN_PROGRESS);
+            }
         }
 
         if (sectionId.equals(ELIGIBILITY)) {
diff --git a/src/test/java/gov/cabinetoffice/gap/applybackend/service/SubmissionServiceTest.java b/src/test/java/gov/cabinetoffice/gap/applybackend/service/SubmissionServiceTest.java
index aeb6fafb..12ce578f 100644
--- a/src/test/java/gov/cabinetoffice/gap/applybackend/service/SubmissionServiceTest.java
+++ b/src/test/java/gov/cabinetoffice/gap/applybackend/service/SubmissionServiceTest.java
@@ -463,12 +463,13 @@ void getQuestionByQuestionId_returnsExpectedQuestion() {
     @Nested
     class saveQuestionResponse {
         @Test
-        void saveQuestionResponse_SavesResponse() {
+        void saveQuestionResponse_SavesResponse_WhenShouldSetSectionStatus_IsTrue() {
 
             final CreateQuestionResponseDto organisationNameResponse = CreateQuestionResponseDto.builder()
                     .questionId(QUESTION_ID)
                     .submissionId(SUBMISSION_ID)
                     .response("AND Digital")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -508,6 +509,134 @@ void saveQuestionResponse_SavesResponse() {
                     );
         }
 
+        @Test
+        void saveQuestionResponse_ResetsSectionStatusToInProgress_IfShouldUpdateSectionStatus_IsTrue() {
+
+            // set the scheme to version 2
+            submission.getApplication().getGrantScheme().setVersion(2);
+
+            // remove surplus sections
+            submission.getDefinition()
+                    .getSections()
+                    .removeIf(section -> section.getSectionStatus() != SubmissionSectionStatus.IN_PROGRESS);
+
+            submission.getDefinition()
+                    .getSections()
+                    .forEach(section -> section.setSectionStatus(SubmissionSectionStatus.COMPLETED));
+
+            final CreateQuestionResponseDto questionResponse = CreateQuestionResponseDto.builder()
+                    .questionId("APPLICANT_ORG_NAME")
+                    .submissionId(SUBMISSION_ID)
+                    .response("New name")
+                    .shouldUpdateSectionStatus(true)
+                    .build();
+
+            doReturn(submission)
+                    .when(serviceUnderTest).getSubmissionFromDatabaseBySubmissionId(userId, SUBMISSION_ID);
+
+            final ArgumentCaptor<Submission> submissionCaptor = ArgumentCaptor.forClass(Submission.class);
+
+            serviceUnderTest.saveQuestionResponse(questionResponse, userId, SUBMISSION_ID, "ESSENTIAL");
+
+
+            verify(submissionRepository).save(submissionCaptor.capture());
+
+            // organisation details and funding details should be set to in progress
+            submissionCaptor.getValue()
+                    .getDefinition()
+                    .getSections()
+                    .stream()
+                    .filter(section -> section.getSectionId().equals("ESSENTIAL"))
+                    .findFirst()
+                    .ifPresentOrElse(
+                            capturedSectionResponse -> {
+                                assertThat(capturedSectionResponse.getSectionStatus()).isEqualTo(SubmissionSectionStatus.IN_PROGRESS);
+
+                                // Check if the question with the specified questionId and response is present
+                                boolean isQuestionPresent = capturedSectionResponse.getQuestions().stream()
+                                        .anyMatch(question -> question.getQuestionId().equals("APPLICANT_ORG_NAME") && question.getResponse().equals("New name"));
+
+                                assertThat(isQuestionPresent).isTrue();
+                            },
+                            () -> fail("No section with ID 'ESSENTIAL' found")
+                    );
+
+            submissionCaptor.getValue()
+                    .getDefinition()
+                    .getSections()
+                    .stream()
+                    .filter(section -> section.getSectionId().equals("ELIGIBILITY"))
+                    .findFirst()
+                    .ifPresentOrElse(
+                            capturedSectionResponse -> assertThat(capturedSectionResponse.getSectionStatus()).isEqualTo(SubmissionSectionStatus.COMPLETED),
+                            () -> fail("No section with ID 'ELIGIBILITY' found")
+                    );
+        }
+
+        @Test
+        void saveQuestionResponse_DoesNotResetSectionStatusToInProgress_IfShouldUpdateSectionStatus_IsFalse() {
+
+            // set the scheme to version 2
+            submission.getApplication().getGrantScheme().setVersion(2);
+
+            // remove surplus sections
+            submission.getDefinition()
+                    .getSections()
+                    .removeIf(section -> section.getSectionStatus() != SubmissionSectionStatus.IN_PROGRESS);
+
+            submission.getDefinition()
+                    .getSections()
+                    .forEach(section -> section.setSectionStatus(SubmissionSectionStatus.COMPLETED));
+
+            final CreateQuestionResponseDto questionResponse = CreateQuestionResponseDto.builder()
+                    .questionId("APPLICANT_ORG_NAME")
+                    .submissionId(SUBMISSION_ID)
+                    .response("New name")
+                    .shouldUpdateSectionStatus(false)
+                    .build();
+
+            doReturn(submission)
+                    .when(serviceUnderTest).getSubmissionFromDatabaseBySubmissionId(userId, SUBMISSION_ID);
+
+            final ArgumentCaptor<Submission> submissionCaptor = ArgumentCaptor.forClass(Submission.class);
+
+            serviceUnderTest.saveQuestionResponse(questionResponse, userId, SUBMISSION_ID, "ESSENTIAL");
+
+
+            verify(submissionRepository).save(submissionCaptor.capture());
+
+            // organisation details and funding details should be set to in progress
+            submissionCaptor.getValue()
+                    .getDefinition()
+                    .getSections()
+                    .stream()
+                    .filter(section -> section.getSectionId().equals("ESSENTIAL"))
+                    .findFirst()
+                    .ifPresentOrElse(
+                            capturedSectionResponse -> {
+                                assertThat(capturedSectionResponse.getSectionStatus()).isEqualTo(SubmissionSectionStatus.COMPLETED);
+
+                                // Check if the question with the specified questionId and response is present
+                                boolean isQuestionPresent = capturedSectionResponse.getQuestions().stream()
+                                        .anyMatch(question -> question.getQuestionId().equals("APPLICANT_ORG_NAME") && question.getResponse().equals("New name"));
+
+                                assertThat(isQuestionPresent).isTrue();
+                            },
+                            () -> fail("No section with ID 'ESSENTIAL' found")
+                    );
+
+            submissionCaptor.getValue()
+                    .getDefinition()
+                    .getSections()
+                    .stream()
+                    .filter(section -> section.getSectionId().equals("ELIGIBILITY"))
+                    .findFirst()
+                    .ifPresentOrElse(
+                            capturedSectionResponse -> assertThat(capturedSectionResponse.getSectionStatus()).isEqualTo(SubmissionSectionStatus.COMPLETED),
+                            () -> fail("No section with ID 'ELIGIBILITY' found")
+                    );
+        }
+
         @Test
         void saveEligibilityResponseToYesAltersStatus_SavesResponse() {
 
@@ -515,6 +644,7 @@ void saveEligibilityResponseToYesAltersStatus_SavesResponse() {
                     .questionId("ELIGIBILITY")
                     .submissionId(SUBMISSION_ID)
                     .response("Yes")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -594,6 +724,7 @@ void saveQuestionResponse_HandlesV2Schemes_WhenEligibilityResponse_IsYes() {
                     .questionId("ELIGIBILITY")
                     .submissionId(SUBMISSION_ID)
                     .response("Yes")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -687,6 +818,7 @@ void saveQuestionResponse_DoesNotReAssignSectionStatus_IfSectionStatusIsNot_Cann
                     .questionId("ELIGIBILITY")
                     .submissionId(SUBMISSION_ID)
                     .response("Yes")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -753,6 +885,7 @@ void saveEligibilityResponseToNoAltersStatus_SavesResponse() {
                     .questionId("ELIGIBILITY")
                     .submissionId(SUBMISSION_ID)
                     .response("No")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -809,6 +942,7 @@ void saveQuestionResponse_HandlesV2Schemes_WhenEligibilityResponse_IsNo() {
                     .questionId("ELIGIBILITY")
                     .submissionId(SUBMISSION_ID)
                     .response("No")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -862,6 +996,7 @@ void saveQuestionResponse_ThrowsNotFoundException_IfQuestionNotFound() {
                     .questionId("AN-INVALID-QUESTION-ID")
                     .submissionId(SUBMISSION_ID)
                     .response("AND Digital")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)
@@ -877,6 +1012,7 @@ void saveQuestionResponse_ThrowsNotFoundException_IfSectionNotFound() {
                     .questionId("AN-INVALID-QUESTION-ID")
                     .submissionId(SUBMISSION_ID)
                     .response("AND Digital")
+                    .shouldUpdateSectionStatus(true)
                     .build();
 
             doReturn(submission)