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
💡 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
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…
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.
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:
💡 Read: Our in-depth walkthrough of the new NPPS
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:
💡 Read: Our full breakdown of the Social Value Model
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:
💡 Read: Our guide to Social Value and the Procurement Act 2023
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…
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 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™ 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.
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:
Projects that deliver on Social Value commitments begin with strong foundations – and this starts well before the tender is published. At this stage, prioritise:
With all of this done, you will be in a great position to start to build a Social Value strategy for the contract.
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:
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:
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.
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:
Once you shift to delivery, Social Value remains a core part of the management of the contract. That means you should:
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.
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 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:
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.
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:
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
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.
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.
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 is making Social Value a key priority by ensuring public spending directly benefits local people, businesses, and communities.
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:
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
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:
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.