Quick answer: Social value in procurement means the wider benefits a contract delivers beyond its direct outputs — jobs created, carbon reduced, communities supported. It is now mandatory in UK public sector procurement and weighted at 10-30% of evaluation scores. Suppliers who can demonstrate genuine, measurable social value commitments have a significant advantage over those who treat it as a compliance exercise.
The legal framework
Social value requirements in UK public procurement have strengthened progressively:
Social Value Act 2012
Required public bodies to consider how procurement could improve economic, social and environmental wellbeing. Applied to services contracts only. Consideration was required but no minimum weighting specified.
Social Value Policy Note (PPN 06/20)
Central government policy note making social value a mandatory evaluation criterion in all central government contracts, with a minimum 10% weighting. Introduced the Social Value Model with five themes.
Procurement Act 2023
Further strengthened social value requirements, embedding the consideration of social and environmental benefits throughout the procurement lifecycle. Buyers must now demonstrate how contracts deliver against national priorities.
The Social Value Model — five themes
Central government uses the Social Value Model (PPN 06/20) to evaluate social value. It defines five themes, each with specific outcomes and measurable indicators. Buyers select the themes most relevant to their contract — your response should address the themes they have specified:
COVID-19 Recovery
Key outcomes:
- ▸Help local communities to manage and recover from the impact of COVID-19
- ▸Support organisations to recover from the impact of COVID-19
- ▸Help individuals to recover from the impact of COVID-19
Examples: Supporting local businesses, employing long-term unemployed, mental health support for workers
Tackling Economic Inequality
Key outcomes:
- ▸Create new businesses, new jobs and new skills in the contract workforce and supply chain
- ▸Increase supply chain resilience and capacity
Examples: Apprenticeships, employing ex-offenders, using local SMEs in supply chain, skills training
Fighting Climate Change
Key outcomes:
- ▸Reduce the supplier's carbon footprint
- ▸Reduce the carbon footprint of the buyer's supply chain
- ▸Influence buyers, workers and communities to engage in more sustainable and efficient practices
Examples: Net zero commitments, fleet electrification, sustainable sourcing, carbon reporting
Equal Opportunity
Key outcomes:
- ▸Increase representation of disabled people in the contract workforce
- ▸Reduce gender and ethnicity pay gap within the contract workforce
- ▸Support victims of modern slavery
Examples: Disability confident employer, ethnicity pay gap reporting, living wage commitment
Wellbeing
Key outcomes:
- ▸Improve the health and wellbeing of the contract workforce
- ▸Improve the wellbeing of the local community
Examples: Mental health support, flexible working, community volunteering, charitable giving
How to write a winning social value response
1. Read the specification carefully
Buyers specify which social value themes and outcomes they want you to address. Do not write a generic response — tailor every commitment to the specific themes the buyer has selected and the priorities of their organisation.
2. Be specific and quantify everything
Generic statements score poorly. Replace "we will create local employment opportunities" with "we will recruit 3 local residents within 6 months of contract start, prioritising candidates from [borough] who have been unemployed for 6+ months." Every commitment should have a number, a timeframe, and a mechanism for delivery.
3. Only commit to what you can deliver
Buyers are increasingly sophisticated at evaluating social value. Commitments that seem disproportionately large relative to contract value, or that lack a credible delivery plan, will be scored down. Make realistic commitments that you can and will honour.
4. Connect to the buyer's priorities
Research the buyer's corporate plan, council plan, or organisational strategy before writing your response. Align your social value commitments to their stated priorities. A council focused on youth unemployment will weight apprenticeship commitments more highly than carbon reduction.
5. Include a measurement and reporting plan
Explain how you will measure, track, and report on your social value commitments throughout the contract. Monthly or quarterly reporting against agreed KPIs demonstrates that your commitments are genuine and manageable, not aspirational.
6. Use TOMS if required
Many local authorities require responses to be submitted using the TOMS (Themes, Outcomes and Measures) framework. If specified, use the TOMS calculator to quantify the monetary value of your social value commitments — this is often required for evaluation purposes.
Social value for SMEs — your natural advantage
SMEs often outperform large companies on social value, for three key reasons:
Local roots
SMEs are typically based in and recruit from the local area, generating more local economic benefit per pound of contract value than national suppliers.
Authenticity
SME social value commitments tend to be more credible and personal than corporate CSR policies. Evaluators can tell the difference.
Agility
SMEs can make specific, tailored commitments that large organisations cannot — for example partnering with a specific local charity or school.
Frequently asked questions
What is social value in procurement?
Social value in procurement refers to the wider positive benefits a contract delivers to society, beyond the direct goods or services being purchased. This includes economic benefits (local employment, SME spend), social benefits (apprenticeships, community programmes), and environmental benefits (carbon reduction, sustainable sourcing).
Is social value mandatory in UK public sector procurement?
For central government contracts, the Social Value Act 2012 and the subsequent 2020 policy note make social value a mandatory consideration. The Procurement Act 2023 further strengthened requirements. Local authorities and NHS organisations also apply social value, often with their own local frameworks.
How much is social value worth in a tender evaluation?
Social value weighting varies by contract. Central government contracts typically weight social value at 10% of the total evaluation score. Local authorities often weight it higher — 15-20% is common, and some weight it at 30% or more for services contracts.
What is the Social Value Model?
The Social Value Model is the central government framework for evaluating social value, introduced in January 2021. It defines five themes (COVID-19 recovery, tackling economic inequality, fighting climate change, equal opportunity, wellbeing) and specific outcomes and metrics under each theme.
How do I measure social value commitments?
Social value commitments should be quantified wherever possible. Use specific numbers — jobs created, apprenticeship starts, volunteering hours, carbon tonnes reduced, percentage of supply chain spend with SMEs. Generic statements without measurement carry much less weight in evaluations.
What is TOMS in social value?
TOMS (Themes, Outcomes and Measures) is a social value measurement framework widely used by local authorities. It provides a standardised way to measure and compare social value commitments across different suppliers and contract types.
Can SMEs compete on social value?
Yes — SMEs often have a natural social value advantage. Local SMEs generate more local employment and supply chain spend per pound of contract value than large national suppliers. A genuine, credible, locally-focused social value proposition from an SME can outperform a generic corporate social responsibility statement from a large company.
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