Social Value in procurement: Unlocking community benefits from the public pound

Public procurement is a significant driver of the UK economy, with gross spending reaching £407 billion in 2023/24.  

The decisions made by government about which suppliers to direct this budget toward, and the terms of those contracts, have major implications for communities across the country. Historically, these decisions focused primarily on cost and quality.  

However, legislative reforms – and a growing need to gain maximum value for public money – has driven a big shift towards integrating Social Value into procurement practices. Whether you're looking to refine your procurement processes to unlock more Social Value, or you’re just getting started, this guide provides the insight you need. 

Table of contents

1. What is Social Value? 
2. Social Value legislation: A history lesson
3. Measuring Social Value in procurement: Why and how
4. Social Value in procurement: A best practice cycle
5. Examples to inspire 

What is Social Value? 

💡 Need a refresher? Read our breakdown: What is Social Value? 

Social Value refers to the broader outcomes an organisation delivers beyond its core goods or services. This might include creating local jobs, improving environmental outcomes, enhancing health and wellbeing, or supporting community infrastructure. 

In the context of procurement, buyers can create Social Value by committing to responsible sourcing practices, such as prioritising Small-Medium Enterprises (SMEs) and Voluntary, Community, and Social Enterprises (VCSEs) in the supply chain.  

However, they can have an even bigger impact by securing Social Value commitments from their suppliers at tender stage, contractualising those commitments, and ensuring they are delivered. 

💡 Listen in: Guy Battle talks Social Value on the Procurement Show

Social Value legislation: A history lesson 

The Public Services (Social Value) Act 2012 

The Public Services (Social Value) Act 2012 marked the first legislative step toward making Social Value a core component of public sector procurement, requiring authorities to consider economic, social, and environmental well-being as well as cost and quality, when evaluating bids.  

This effectively created a cost-quality-Social Value triangle for bid evaluation:  

Below, Lorraine Cox, Director of STAR, which supports procurement activities for numerous councils, explains just how important Social Value has become in public procurement:

But while the Social Value Act 2012 integrated Social Value into evaluation criteria, what it didn’t do is define Social Value, provide enforceable mechanisms, or outline consistent ways to measure delivery.  

The Social Value TOM System™ bridged this gap, bringing structure, standardisation, and measurability to Social Value. It helps users to quantify their contributions across Themes, Outcomes, and Measures, and is now widely used by local authorities and public bodies across the UK, as well as businesses and voluntary organisations.  

Following the foundational Social Value Act 2012, the next big change arrived in 2020 with…  

PPN 06/20 and the Social Value Model 

To provide clearer guidance to authorities, the government issued Procurement Policy Note (PPN) 06/20 in 2020, alongside the Social Value Model, which applied to all in-scope central government procurements. 

PPN 06/20 mandated a minimum 10% weighting for Social Value at the tender stage. Meanwhile, the Model structured Social Value into five Themes and outlined Model Award Criteria (MACs) to help evaluators assess supplier commitments more consistently on a qualitative basis.  

The National Procurement Policy Statement 

In February 2025, the Government released an updated National Procurement Policy Statement (NPPS). Structured around its 5 Missions, the NPPS puts Social Value at the forefront of public procurement – and introduces a stronger focus on: 

• Value for money: This isn’t just about lowest cost. The NPPS specifies that “contracting authorities can deliver value for money by […] delivering social and economic value”. In other words, value for money encompasses Social Value. 
• Place-based procurement: Contracting authorities must secure social and economic value to support “local and regional growth” – meaning that local needs should factor into Social Value strategies.  
• Contract management: Authorities must benchmark their contract management capabilities and ensure they have the capability for delivery.

💡 Read: Our in-depth walkthrough of the new NPPS

PPN 002: Strengthening Social Value delivery

In February 2025, the Government released an updated Social Value Model for authorities to use – which will become mandatory on 1 October 2025.  

Like the NPPS, the new Model is based around the Government’s 5 Missions, with eight Outcomes that break down into Award Criteria, model sub criteria, and standard reporting metrics. While it mostly maps to the Model introduced with PPN 06/20, there are a few important differences, such as the removal of the COVID-19 recovery Theme and a stronger emphasis on areas like:  

• Talent pipelines
• Community cohesion
• Fair work and pay
• Removing barriers to work
• Tackling domestic violence

💡 Read: Our full breakdown of the Social Value Model 

How the Procurement Act 2023 drives Social Value in procurement

The Procurement Act 2023, which like the new Social Value Model and NPPS came into force in February 2025, replaces the UK’s previous procurement rules with a single unified framework. It simplifies procedures while requiring contracting authorities to deliver outcomes that advance public benefit, including social, economic, and environmental impact.

The Procurement Act 2023 ups the ante on Social Value in procurement – not just in terms of commitments, but delivery – by introducing: 

• Legal responsibility to “have regard to maximising public benefit”, and to the NPPS  
• A change from “Most Economically Advantageous Tender (MEAT)” to “Most Advantageous Tender (MAT)”, enabling non-financial value to carry greater weight in contract awards 
• A requirement for authorities to set and publish at least three Key Performance Indicators (KPIs) for all £5 million+ contracts – with Social Value likely to be a KPI for many contracts 
• Measures for the removal of barriers to SMEs and VCSEs, as well as new spending targets with these suppliers

💡 Read: Our guide to Social Value and the Procurement Act 2023

Measuring Social Value in procurement: Why and how 

So, procurement law requires authorities to evaluate the Social Value offers received from bidders. But why should buyers actively measure Social Value across the full procurement lifecycle?  

Aside from the new requirements in the Procurement Act 2023, actively measuring Social Value during procurement enables authorities to secure high quality, realistic commitments from bidders that go on to be delivered.  

This creates added benefits to the community, but to the buyer, in the form of… 

• Budgets that go further, delivering wider beneficial impacts 

• Compliance and safety from legal challenge 

• Social Value data proving the benefits delivered to the community  

• Better collaboration with suppliers 

Measuring Social Value: The TOM System™ vs the Social Value Model 

Two primary tools help public bodies embed Social Value into procurement are the Social Value Model and the Social Value TOM System™. While they are often used together, each serves a distinct, if complimentary, purpose: 

The Social Value Model 

The Social Value Model provides a standardised way for central government and in-scope organisations to evaluate Social Value at the tender stage. However, it does not offer a mechanism for tracking delivery post-award or for quantifying outcomes in financial terms. 

The Social Value TOM System™ 

The Social Value TOM System™ was developed to measure Social Value commitments and delivery through the entire commercial lifecycle, with all data going through a validation process. Each Measure within the TOM System has a ‘proxy value’ – a financial equivalent of the economic, social, or environmental benefit of a particular activity.  

Social Value in procurement: A best practice cycle 

The Procurement Act 2023 and PPN 002 have made one thing clear: Social Value shouldn’t be an afterthought in procurement, or something that matters solely at evaluation. Instead, it should be embedded from the very outset, starting with internal planning, and progressively unlocked throughout the full commercial lifecycle. 

Authorities can achieve this through the structured cycle of best practice we share below: 

1. Preparation and preliminary market engagement

Projects that deliver on Social Value commitments begin with strong foundations – and this starts well before the tender is published. At this stage, prioritise: 

• Understanding local priorities: Use a Local Needs Analysis or other forms of stakeholder feedback to identify where Social Value can make the greatest difference – is it green space, crime, lack of employment opportunities? This intelligence should guide your approach.  

• Engaging the market: Share Social Value expectations and priorities (including any Measures you have chosen), and learn about the market’s capacity through preliminary market engagements, such as ‘meet the buyer’ events. You can also share a Social Value Policy (like London Borough of Waltham Forest) to guide bidders. 

• Define responsibilities and gain internal buy-in: Ensure all stakeholders – procurement, legal, commercial, and delivery teams – understand the role Social Value will play, with clearly defined responsibilities. 

With all of this done, you will be in a great position to start to build a Social Value strategy for the contract.  

2. Creating a strong Invitation to Tender (ITT)

As your Invitation to Tender (ITT) will be critical in attracting credible and deliverable Social Value submissions, it should be as clear and informative as possible, giving bidders (especially smaller ones) the information they need.  

Make sure that your ITT: 

• Reflects market feedback: Learnings from preliminary market engagement around Social Value opportunities, as well as potential blockers, should inform the creation of your ITT.  

• Defines key Social Value concepts: Ensure bidders understand the basics, like what Social Value is, and the “why” behind your ask. Also, be sure to cover “additionality” (value delivered beyond core requirements and corporate initiatives) and clarify any regional or community-specific focus. 

• Clarifies methodology and timeline: Provide clear evaluation criteria and delivery milestones, while ensuring requirements are relevant and proportionate to the contract’s scope and ambition. You should also clearly explain weightings and sub-weightings. 

• Accounts for changes and remedies: Build in contingencies for unforeseen events that may impact delivery and specify remedies for unmet commitments.  

• Request contract value and delivery plan: Asking bidders to submit estimated contract values and detailed delivery plans, so you can assess the credibility and feasibility of their Social Value offers.  

• Is inclusive: MSMEs (Micro and Small-Medium Enterprises) and VCSEs (Voluntary, Community, and Social Enterprises) often struggle to access tendering opportunities at the same level as their larger competitors due to lack of dedicated resource. Provide enough time, information, and support for these organisations to participate. 

3. Evaluating bids for Social Value

PPN 002 specifies that Social Value must comprise at least 10% of the total score for in-scope procurements, and this is typically adhered to in local government procurements as well. The weighting can be higher depending on the contract’s focus and proportionality. 

To assess Social Value offers, evaluators will need to combine quantitative and qualitative criteria: 

Quantitative assessment 

The TOM System enables procurers to assess the bidder’s target data against standardised Measures, with both units (e.g., weeks of volunteering) and proxy values (e.g., £100 of Social Value). This ensures the proposed Social Value is relevant, proportionate to the contract, and aligned with the bidder’s actual capacity to deliver. 

Qualitative evaluation 

Bidders must describe how they plan to deliver the Social Value commitments outlined. These narrative responses should be backed by clear delivery plans and supporting evidence to demonstrate credibility. 

We ask a very targeted question: ‘How will you deliver?’ Here, we want timescales, individuals who will be involved, allocation of responsibilities. It allows bidders to understand our expectations of their Social Value offer in the context of the contract delivery.

Richard Carroll, Chief Procurement Officer, Durham County Council 

Here are six key evaluation principles we recommend you follow:  

1. Ensure deliverability and additionality: Scrutinise whether proposals go beyond core services and are genuinely achievable. 
2. Root out overclaiming: Watch for speculative targets or misattributed value, particularly where no delivery plan is provided. 
3. Evaluate relevant information: Only evaluate information presented by the bidder as requested in the ITT. 
4. Evaluations individually: Each submission should be evaluated on its own merit, without comparison to others. 
5. Answer clarification questions: Provide clarity to bidders – but avoid giving unequal treatment. 
6. Prepare for contract management: Document thoroughly so that contract managers can pick up where the process left off.

4. Delivering Social Value during contract management

Once you shift to delivery, Social Value remains a core part of the management of the contract. That means you should: 

Track your chosen KPIs and Measures 

The Procurement Act 2023 requires authorities to set and publish at least 3 KPIs for contracts worth over £5 million. Where Social Value is a major component, we recommend setting at least one Social Value related KPI and tracking it – alongside any TOM System Measures you may be using.   

Address non-delivery promptly 

Strive to work collaboratively and help suppliers to deliver if they are struggling – but don’t be afraid to use contractual remedies where commitments aren’t being met. 

If suppliers are struggling to deliver Social Value, try to help them by introducing them to new contacts and suggesting new avenues.  

Jessica Conley, Technical Lead, Manchester City Council

Social Value in procurement: Examples to inspire 

Social Value is an evolving field, with lots still to learn, but authorities across the country are already achieving incredible things in collaboration with suppliers. Here are a few examples that we hope can inform and inspire your approach: 

Harwich Haven Authority Harwich  

Haven Authority has long prioritised responsible decision-making, but in 2022, they partnered with Social Value Portal to take a more structured, data-led approach to delivering community impact.  

Identifying local needs  

A Local Needs Analysis revealed significant deprivation in the area (42.7% in Tendring and 20.5% in East Suffolk), guiding the authority’s Social Value strategy across three key areas:  

• Employment: Paying a living wage and engaging with local schools.  
• Environment: Protecting habitats and ensuring sustainable port operations.  
• Community: Supporting health initiatives and aligning charitable efforts. 

The Authority adopted the TOM System to measure and report impact across the supply chain, delivering £4.3 million in Social Value in 2023 alone. 

💡 Read the full story: Social Value & Harwich Haven Authority

A coastal discoveries workshop co-funded by Harwich Haven Authority and a key supplier

NHS London Procurement Partnership (NHS LPP) 

Managing procurements for 40 trusts across five Integrated Care Boards (ICBs), NHS London Procurement Partnership (NHS LPP) is helping its members embed Social Value into their procurement processes. 

Upskilling NHS procurement teams 

NHS LPP launched comprehensive training programs designed to equip procurement teams with the skills to evaluate and implement Social Value initiatives, help leadership understand the benefits, and enhance contract management and measurement of impact. 

Spotlight: Barts Health and Synergy Health Managed Services 

Barts Health NHS Trust’s partnership with Synergy Health Managed Services has generated £556,500 in Social Value, including:  

£40,000 invested in tackling workforce inequalities  
149,000 miles saved through green transport initiatives  
12 new employment opportunities for local and unemployed people 

💡 Read the full story: Social Value & NHS LPP 

Rotherham Council 

Rotherham Council is making Social Value a key priority by ensuring public spending directly benefits local people, businesses, and communities. 

Real impact for residents 

Since adopting its Social Value policy in 2019, the council has increased local contract spending by 72% to £77.2 million, with nearly 30% of all contracted spend staying local.  

In the span of a year, Social Value commitments doubled from £4 million to £8 million, while new contract commitments rose from £13.6 million to £27.8 million. 

This includes: 

• 1,500 training weeks (30 years' worth of training) 
• £1.8 million in job support for young people 
• 19 full-time roles for the long-term unemployed 
• £135,000 donated to community organisations 
• 4,300+ tonnes of carbon emissions saved

Rotherham supplier ESH volunteering with a local school

Social Value in action in Rotherham

Local supply chains have generated £10.9 million in additional economic value, a 263% increase in just one year. The East Herringthorpe housing project is a great example, where a West Yorkshire contractor exceeded its local spend target, injecting £145,000 into the local economy. 

At Forge Island, Rotherham’s flagship town centre development, 83% of labour came from within 40 miles, while local firms took on unemployed residents and trainees. Meanwhile, a construction firm transformed the Sanctuary Gardens allotment for a mental health charity, showcasing the power of small but meaningful contributions. 

💡 Read the full story: Social Value & Rotherham Council

London Borough of Waltham Forest

Here's Adrian Williams of Waltham Forest Council talking about Waltham Forest's Social Value journey, and the importance of Social Value Portal's data validation approach:

Your next step: Embedding Social Value in procurement 

At Social Value Portal, we work with some of the largest contracting authorities across the UK to make public spending go further by embedding Social Value across the entire procurement lifecycle. 

To start your Social Value journey and understand how you can maximise your own impact, get in touch with one of our experts.