Social value

The extra your work delivers for people, place and planet, over and above the thing you were paid for. In public procurement it is scored, and the rules changed again last month.

What social value means

Social value is the wider economic, social and environmental benefit an organisation creates through what it does, beyond the core purpose of the contract. Two suppliers can deliver the same service at the same price and leave very different amounts behind them — in local jobs, in training, in what happened to the people who used the service.

It is not a synonym for doing good. It is a scored, evidenced quantity, and since 2012 the public sector has had a duty to think about it before it buys anything.

The rules, in order

Three different models in under two years. If somebody quotes you a social value rule, the first question is which of these they mean.

  1. 2012

    The Social Value Act

    Commissioners must consider wider wellbeing when procuring services. No score, no weighting, no model — a duty to think about it.

  2. 2020

    PPN 06/20

    The first Social Value Model. Five themes, a menu of outcomes, and a minimum 10% of the score for social value in central government contracts.

  3. Oct 2025

    PPN 002

    A new model under the Procurement Act 2023, published February 2025 and mandatory from 1 October 2025. Keeps the minimum 10% weighting. This is the model in force today.

    In force now
  4. Jan 2027

    PPN 026

    Published 5 August 2026. Replaces the PPN 002 model for procurements commenced on or after 1 January 2027, and narrows social value sharply. Guidance follows in autumn 2026.

What changes on 1 January 2027

PPN 026 is a significant narrowing, and worth understanding early if any part of your income comes from central government contracts.

The definition narrows

From five themes to two outcomes.

Social value for central government is now defined as how a supplier will work for communities to provide good British jobs, skills and opportunities in every postcode. The model has two outcomes: Good jobs (creating and retaining quality jobs, fair working conditions, fair pay) and Skills (training and retraining that addresses shortages and reaches people facing barriers to work).

A size threshold appears

£1m and above, including VAT.

PPN 026 applies only to covered procurements valued at £1 million total contract value including VAT or above. PPN 002 had no such floor, so smaller central government contracts fall outside the model altogether.

The weighting rises with value

10% under £5m, 20% at £5m and above.

For contracts from £1m up to £5m, a minimum 10% of the total score. At £5m and above, a minimum 20%. Where a Price per Quality Point method is used, that is 10% or 20% of the quality score.

Promises become KPIs

At £5m, at least one social value KPI.

Commitments made during the procurement must be monitored through contractual mechanisms. For contracts of £5m or more, at least one social value KPI is set, on top of the KPIs the Procurement Act already requires.

How social value gets measured

The government model tells a central department what to ask. It does not tell anybody how to put a number on the answer. That is what the measurement frameworks do, and outside central government they are what most buyers actually use.

The TOM System

Themes, Outcomes and Measures, formerly the National TOMs, built by Social Value Portal and the most widely adopted social value framework in the UK. It works from a theory of change — inputs, outputs, outcomes, impact — and attaches proxy values so an outcome comes out as a Social Value £.

Its advantage over a bespoke measurement is comparability: the same measure means the same thing across contracts, departments and suppliers, which is exactly what a buyer scoring ten bids needs.

What a buyer is actually scoring

Not your values, and not your mission statement. Commitments that are:

  • Relevant to this contract — general corporate responsibility policies are explicitly excluded.
  • Proportionate to the nature, complexity and cost of what is being bought.
  • Additional — over and above what you would have done anyway, and beyond statutory minimums.
  • Deliverable and measurable, because they become contract terms and KPIs you get held to.

Questions

Does this apply to councils and the NHS?
Not automatically. PPN 002 and PPN 026 bind central government departments, their executive agencies and non-departmental public bodies. Other contracting authorities may adopt the approach, and most large ones apply a social value weighting of some kind — often through the TOM System rather than the government model.
We are a charity bidding for a contract. Does social value help or hurt us?
It usually helps, because the things you already do count. The risk is assuming the assessor can see that. Social value is scored on what you commit to deliver through this contract, evidenced and measurable, not on being a charity.
What happens to our PPN 002 commitments after January 2027?
Nothing. Procurements commenced before that date carry on under the model they started with. PPN 026 applies to procurements commenced on or after 1 January 2027, and a procurement commences when the tender notice is published.
Is 10% of the score a lot?
It is often decisive. Price and quality scores between serious bidders tend to sit close together, so a tenth of the marks on a section many suppliers answer badly is where contracts get won.
Do we need to put a pound value on our social value?
Only if the buyer's framework asks for it. Central government's model does not; the TOM System does. Read the tender documents before you commission anybody to calculate anything.

Sources

Get your social value documented