To win those lucrative (and competitive) central government contracts, you need to understand both Social Value, and the Social Value Model.
But if these topics are a bit of a mystery to you, don’t worry – we’re here to help. In this complete supplier’s guide, we will:
Plus, we’ll discuss how to get the qualitative and quantitative information required for a full view of Social Value by combining the Social Value Model with the Social Value TOM System™.
Social Value is the value an organisation contributes to society beyond its reported profit, and beyond business-as-usual standards or core contractual requirements. While profit is measured in standard accounting terms, Social Value is measured by the organisation’s actions.
It originated in the Public Services (Social Value) Act of 2012, which requires commissioners of public service works to consider the wider economic, environmental, and social impacts of a project — not just the bottom line.
But for central government, Social Value remained just that — a consideration — until mid-2020, when a combination of events (including the COVID-19 pandemic, Brexit, and the collapse of construction and services giant Carillion, a major strategic supplier to the UK public sector) prompted another big legislative change…
💡 In-depth breakdown: What is Social Value?
Although ministers wanted Social Value to be explicitly evaluated rather than merely “considered”, they decided it was impractical to introduce new legislation updating the existing Social Value Act.
Instead, they created PPN 06/20, a public policy note that provided comprehensive guidance on evaluating Social Value in procurements processes, applying to all central government departments, their executive agencies, and non-departmental public bodies. Notably, it also required a 10% minimum weighting for Social Value at the evaluation stage.
Alongside PPN 06/20, the Government launched the ‘Social Value Model’ – comprising five Social Value Themes and eight Policy Outcomes – to guide authorities on evaluating Social Value.
💡 Explore: PPN 06/20 and the original Social Value Model
However, on 24 February 2025, the Government published PPN 002, alongside an updated Social Value Model, which became mandatory on 1 October 2025. Like the new National Procurement Policy Statement, the new Model is based around the Government’s “Five Missions”.
This is a real shift. It’s the Government saying, "We see Social Value as an enabler of our core business as a government, of the core commitments that we have made to voters".
James Jenkins, Head of Strategic Consultancy, Social Value Portal
Within those Missions, the Social Value Model contains eight Outcomes that break down into:
💡 Explore: PPN 002 and the Government’s guide to the Social Value Model
The Social Value Model (applying to “above threshold” contracts) retains the foundations of the original - including a minimum 10% weighting for Social Value at tender stage - but introduces clearer assessment criteria and stronger expectations around delivery. It also has a stronger emphasis on areas like:
Below you can see the structure of the updated Social Value Model:
|
Mission |
Policy Outcome |
| Kickstart economic growth |
|
| Make Britain a clean energy superpower |
|
|
Take back our streets |
|
|
Break down barriers to opportunity |
|
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Build an NHS fit for the future |
|
As you can see, each Mission breaks down into one or more Outcomes, which define distinct goals which the Government wishes to guide authorities to prioritise.
When using the Social Value Model, contracting authorities must follow three steps:
In a shift from the original Model, in Step 1 authorities are now encouraged to focus on only one Outcome (except in the largest or most complex contracts).
Rather than spreading commitments across multiple areas, bidders are expected to go deeper by demonstrating a targeted contribution to a single Outcome that is directly relevant to the contract.
Let’s look more closely at some of the activities and areas covered in each Outcome:
This Outcome is an important one, representing five separate MACs. It focuses on creating and sustaining high-quality employment opportunities while ensuring fair working conditions and pay.
Bidders can score points by demonstrating how they intend to:
This is also where steps to identify and mitigate modern slavery come into play.
Outcome 2 focuses on supporting the development of the workforce through learning and training opportunities relevant to the contract. This might mean:
Showing that you understand sector-specific employment and training challenges, like demographic shifts, regional skills gaps, and opportunities in high-growth industries, is key.
For this outcome, bidders can score points by outlining their efforts to open subcontracting opportunities to a wide range of businesses. It’s also effective to demonstrate how you will work collaboratively with local communities and anchor institutions to design and deliver the contract.
Procurement is a powerful tool for driving sustainability. This Outcome is an opportunity for suppliers to show how they will embed environmental benefits, whether by cutting greenhouse gas emissions, adopting clean energy, or integrating green technologies.
This shouldn’t stop at your own operations either – you can also work with your customers and supply chain partners to create positive environmental impact.
Authorities may look for suppliers to contribute to crime reduction efforts - particularly in tackling domestic abuse within the workforce and supply chain.
Domestic abuse is a bigger problem than many realise - according to ONS figures 20% of people aged 16 and over had experienced domestic abuse since the age of 16. Accordingly, it's a big focus in the new Model and something that will challenge suppliers to expand their perception of what is 'relevant' as well as build new capabilities.
Think about outlining:
Showing how you will engage staff, suppliers, and customers in promoting safety and supporting those affected will also strengthen your proposal.
Creating employment and training opportunities for underrepresented groups is a key means for suppliers to deliver Social Value.
This might mean committing to hiring individuals from deprived areas, increasing representation of disabled people, or tackling inequality in pay and skills. Your tactics could include targeted recruitment efforts, inclusive workplace policies, and training pathways.
Helping underrepresented groups (like NEETs, care leavers, disabled people, and prison leavers) overcome barriers to employment is a massive government priority.
As a supplier, your plans to do this could include structured development programs like apprenticeships, T Level placements, and supported internships with clear progression routes. However, a key factor is showing your understanding of the challenges you are addressing.
Be sure to mention any planned outreach efforts, like partnering with community groups, advertising roles locally, and engaging with schools, and setting measurable targets.
If the tender asks bidders to explain how they will help tackle mental and physical health, you can consider committing to:
Specific plans, for instance around inclusive recruitment, digital access improvements, and targeted wellbeing programs, will give your proposal added robustness.
Under PPN 002, Social Value is evaluated through a model question (which can be refined by the authority) in the tender documentation known as the Model Social Value Question (MSVQ).
For each contract, the contracting authority will:
This question forms the basis of how your Social Value proposal is scored. While details may vary, bidders are typically asked to set out in a method statement and project plan the specific, measurable and time-bound commitments their organisation will make to deliver the selected Policy Outcome and Award Criteria.
To score well, your response needs to demonstrate…
This is the minimum requirement to score points: commitments should be defined, with outputs that can be tracked and evidenced.
You need to show how your proposal directly contributes to the Outcome being assessed, not just Social Value in general.
For many Outcomes, particularly those relating to employment and skills, you will need to identify the group you are supporting (e.g. care leavers, unemployed individuals, or people with disabilities) and explain how you will engage them.
This should include a timeline of activities, resources required, and partners or stakeholders involved.
You should outline how your commitments will be monitored and the metrics you will use. Where relevant, these should align with the Model’s Standard Reporting Metrics.
Stronger responses will also explain how delivery will be managed, performance reviewed, and the approach refined over time.
The introduction of the Model Social Value Question marks a shift in favour of structured, evidence-based proposals. It is now likely that generic Social Value statements will not score highly; instead, commitments must be tailored to the specific contract. At the same time, delivery, measurement, and accountability have become just as important as the proposed activity.
We want to make sure suppliers really think about how they're going to deliver the things they're putting in their bid. But there needs to be a partnership, just as you would expect the contract to be run against any of your KPIs. The contracting authority needs to put the right level of focus, interest, support, and engagement into the Social Value elements of the contract, just as much as the wider delivery.
Sam Rowbury, Director, Commercial Policy, Cabinet Office at the Social Value Conference
Standard Reporting Metrics are a key part of the updated Model.
Each Outcome is supported by a set of Model Award Criteria and sub-criteria – corresponding SRMs then define how delivery is quantified. This might include the number of roles created, hours of training delivered, or spend with small businesses and the voluntary sector.
The purpose of SRMs is to ensure that Social Value is assessed and tracked in a consistent, comparable way across contracts.
Where an SRM is relevant and proportionate to the contract, it should be used. However, the Model also allows flexibility: if an SRM is not suitable, authorities and suppliers can agree an alternative that better reflects the intended outcome.
So, here’s how all the elements fit together as a structure within each Mission:
Government guidance also encourages contracting authorities to include at least one Social Value Key Performance Indicator (KPI) per contract, where appropriate and proportionate.
Where KPIs are not suitable, Social Value commitments can instead be managed through Performance Indicators (PIs). In both cases, measures must combine a clearly defined deliverable with a numeric metric, enabling performance to be tracked and assessed.
Where applicable, these should align with the Model’s Standard Reporting Metrics, ensuring consistency in how Social Value is measured and reported.
💡 KPIs are also a key feature of the Procurement Act 2023: Explore our free guide
The Government’s guidance on the principles underpinning bid evaluations via the Model Social Value Question will give you a strong starting point:
However, from helping numerous strategic suppliers secure government contracts, we have seen that the following considerations are especially important for a truly robust bid:
As the bidder, your job is to demonstrate that you understand the procurer’s Social Value goals, and have thought about how your specific organisation and this specific contract can achieve them.
Ask yourself:
This is your chance to explain why your proposal meets the procurer’s needs, with the target Outcome(s) at the centre of your bid.
Example scenario: MAC 2a. Sub criteria - Educational attainment
Let’s say a bidder for an engineering contract wants to make commitments against:
2a. Learning and skills development opportunities relevant to the contract to address skills gaps.
Specifically, the bidder wants to make a commitment against the following sub criteria:
Support for educational attainment relevant to the contract, including training schemes that address skills gaps and result in recognised qualifications.
The bidder starts by highlighting a specific skills issue relating to mechanical engineering – a key workforce capability that will be required to deliver the contract.
They then note a shortage of local students taking up mechanical engineering apprenticeships at the local college, and identify that local schools are struggling with STEM engagement and achieving lower grades than the regional average, discovered through a Local Needs Analysis.
This opens an opportunity for the bidder to help more young people break into the industry and tackle the skills gap by connecting local students with the college’s apprenticeship programme, thus boosting STEM engagement.
To win central government contracts, you need to persuade the procurer that you want to make a measurable difference in terms of economic, environmental, and social impacts. You also need to show that your commitments are realistic for the contract size and your own capabilities as an organisation.
Consider the following questions:
Example scenario: MAC 2a. Sub criteria - Educational attainment
Let’s return to our example of a bidder for an engineering contract making commitments against MAC 2a.
Having identified a need to improve local educational attainment in STEM, the bidder connects with local school engagement partners, who confirm a need for more careers talks in three of their target schools.
The bidder then commits to delivering 30 hours of career talks in schools. This amount is realistic and achievable given the duration of and number of staff that will work on the contract.
The talks will be shaped with the college and a STEM charity, with the aim of increasing students’ aspirations and awareness of careers in engineering. Moreover, the bidder commits to supporting an individual from the identified schools into a contract apprenticeship.
Of course, demonstrating Social Value is about real impact — not empty words. Procurers need to feel confident that you are capable of delivering on your Social Value goals. Persuading them that your organisation is the right fit is about highlighting your previous expertise and demonstrating that you understand the specific challenges of their project.
Here are three key questions to consider:
Example scenario: MAC 2a. Sub criteria - Educational attainment
Finally, our bidder instils confidence in the buyer by detailing its track record of delivering impactful school engagement sessions in the past, including leveraging the expertise of its STEM charity partner.
The bidder also commits to providing quarterly progress updates, providing quantitative data and qualitative case studies from the schools involved to demonstrate the initiative’s impact.
Social Value Portal’s keys to a winning bid
Under PPN 002, the challenge for suppliers isn’t just defining Social Value, but managing and reporting it consistently across contracts and buyers.
Many suppliers are still relying on spreadsheets or manual reporting processes. This isn’t just inefficient – as expectations around transparency and auditability increase (particularly given the Procurement Act 2023’s requirements), it leaves you vulnerable to audit and challenge.
Social Value Portal’s platform is built to support contract delivery under the Social Value Model, giving suppliers a simple and compliant way to record and report outcomes:
Join the hundreds of organisations who trust Social Value Portal for their procurement, bidding, and reporting needs: Speak to the team.
Or, if you want to learn more about the Social Value Portal platform first, explore here.