Social Value in Procurement
Quick answer
Social value is the economic, social, and environmental benefit a public contract delivers beyond the core purchase. In UK central government, the Social Value Model requires at least 10% weighting in award criteria; suppliers must offer measurable commitments, not generic promises.
Last updated: 18 May 2026
What is social value in procurement?
Social value answers: what good does this contract do for communities, workers, and the environment, on top of delivering the service? Examples include local apprenticeships, SME subcontracting, carbon reduction, and support for disadvantaged groups.
For suppliers, social value is no longer a "nice paragraph" at the end of a bid. It is scored, audited, and increasingly reported through contract KPIs under the Procurement Act 2023 transparency regime.
How does social value work under the Procurement Act 2023?
Public benefit and MAT
The Act frames value through public benefit and award to the Most Advantageous Tender (MAT), not lowest price alone. Buyers publish award criteria in the Tender Notice and ITT.
Social Value Model (central government)
PPN 06/20 (the Social Value Model) sets policy themes:
- COVID-19 recovery (evolving in practice)
- Tackling economic inequality
- Fighting climate change
- Equal opportunity
- Wellbeing
Suppliers map responses to the buyer's stated priorities and metrics, often using TOMs (Themes, Outcomes and Measures) or buyer-specific scorecards.
Delivery and reporting
Winning the bid is half the job. Larger contracts may include mandatory KPIs and Contract Performance Notices. Under-delivery on social value can damage relationship scores and framework call-off chances.
Social value vs "value for money" — practical distinction
| Concept | Focus |
|---|---|
| Price / commercial | Cost, whole-life value, risk transfer |
| Quality | Method, team, technical solution |
| Social value | Measurable wider benefits (jobs, carbon, SMEs, VCSEs) |
A cheap bid with weak social value loses under MAT when weighting is 10% or higher. A strong social value section with unpriced risk in the commercial offer still loses.
Writing credible social value responses
Do
- Tie each commitment to specific metrics (FTE apprenticeships, tonnes CO₂e, spend with local SMEs).
- Name accountable roles and mobilisation milestones in the mobilisation plan.
- Reuse verified data from past contracts (with permission) and align with VCSE partners where relevant.
- Cross-reference net zero and ESG policies where the buyer scores them.
Avoid
- Generic charity donations unrelated to contract delivery.
- Commitments you cannot operationally deliver (treated as misrepresentation in serious cases).
- Copy-paste paragraphs that ignore the buyer's stated themes.
Use TenderLedger's co-pilot to draft proportionate social value sections tied to the ITT wording, then red-team with delivery leads.
What does this mean for suppliers?
- Build a social value playbook per sector (construction, IT, facilities) with evidence packs.
- Price social value delivery (training time, reporting, local hiring) inside your cost model.
- Track SME spending and subcontractor reporting if you prime large contracts.
- Read the NPPS for strategic direction affecting future tenders.
Common questions about social value
What weighting should I expect for social value?
Central government: minimum 10% under the Social Value Model. Local government and NHS vary; read the ITT weightings table.
Are TOMs mandatory?
Not always, but widely used in central government and by adopters locally. Follow the buyer's metric framework in the tender documents.
Can social value include local hiring?
Yes, when measurable and linked to contract performance. Align with equality and employment law requirements.
How do evaluators spot weak social value?
Vague commitments, no baselines, no owners, and no link to contract KPIs. Strong bids quantify, time-bound, and verify.