Partner services
Social value strategy for public sector suppliers
Social value is worth at least 10% of the marks in central government tenders, and from January 2027 it rises to at least 20% on contracts of £5 million or more. Close bids are won and lost on it. We arrange a social value strategy with a specialist partner, so your commitments are credible, measurable and ready to use in your next bid.
Rated 5.0 on GoogleAt a glance
Built to
- PPN 026
- PPN 002
- Social Value Act
- What you get
- A clear view of where you stand, a strategy with measurable commitments, and a measurement framework that gives your bids real evidence
- Delivered by
- Our specialist social value partner, arranged and co-ordinated by Advice Cloud
The Social Value Model changes on 1st January 2027. See how ready you are for PPN 026 with our free readiness tool and receive a personalised report with recommended next steps.
Take the readiness checkWhy it matters
Why social value decides public sector bids
Since the Public Services (Social Value) Act came into force in 2013, public buyers have had to consider the wider social, economic and environmental benefits of what they buy. For central government, that's now written into every major tender through the Social Value Model.
It's scored like any other quality question, but it's the one where suppliers are most often vague. Buyers want specific, measurable commitments for the contract in front of them, and they increasingly hold you to them once you've won.
- Win the marks that separate close bids, at 10% to 20% of the total score
- Promise only what you can deliver, because commitments become contract KPIs
- Protect future bids, as poor delivery against social value KPIs can count against you
Social value and ESG
One strategy, two jobs: winning contracts and strengthening your ESG
Your ESG report shows the buyer you're a sound business. But the buyer awards on the tender response: what you'll do, on this contract, by when. Government guidance is clear that corporate responsibility statements on their own won't score. A good strategy connects the two, so the same activity strengthens your ESG reporting and gives your bids contract-specific commitments.
| Topic | ESG and corporate responsibility | Social value in a tender |
|---|---|---|
| Who it's for | Investors, customers, staff and lenders | The evaluation panel for one contract |
| Scope | How the whole organisation operates | What you'll deliver through that contract |
| Evidence | Policies, annual reporting, ratings | Timed action plans, metrics, named owners and contract KPIs |
| What a strategy adds | A clear position and priorities your leadership owns | Commitments you can lift into any bid, scaled to the contract |
Where it's required
When buyers score social value
The rules depend on who's buying, the contract value and when the procurement started. These positions were checked on 14th November 2026.
Central government contracts of £1m or more
PPN 026 sets a minimum 10% weighting for contracts from £1 million to under £5 million, and 20% for £5 million or more. Contracts of £5 million or more also carry at least one social value KPI, published and reported every year.
Procurements already under way
PPN 002 applies a minimum 10% of the total score to social value. Procurements that started under it before 1st January 2027 can carry on using that model.
Frameworks such as G-Cloud and DOS
Social value has to be assessed when the framework is set up before buyers can use it at call-off. You may commit to a type of social value on application, then make a specific offer when you bid for each contract.
The requirements
What the new Social Value Model asks for
PPN 026 narrows the model to two outcomes, good jobs and skills, with six award criteria. Buyers choose the criterion that fits the contract, so you need a credible answer for each one.
| Award criterion | What buyers reward | What it could look like for a tech supplier |
|---|---|---|
| Outcome 1: Good jobs | ||
| 1a. Create and retain quality jobs | Jobs created or kept in the relevant area, recruitment that helps people access work, and jobs in high-growth sectors | Hiring contract roles in the buyer's region, with recruitment routes for people facing barriers to work |
| 1b. Fair working conditions | Conditions above the statutory minimum, and support for people facing barriers to stay in work | Flexible working, wellbeing support and workplace adjustments for the contract team |
| 1c. Fair pay | Pay above the national minimum wage, and progressive reward that retains staff | Paying everyone on the contract at least the Real Living Wage, with a clear pay progression policy |
| Outcome 2: Skills | ||
| 2a. Training and retraining | Training that tackles skills shortages, co-designed with the community it's for | Digital or cyber skills training run with a local college or charity |
| 2b. In-work progression | Helping the contract workforce build skills and move into better-paid work | Funded certifications and a career framework for the delivery team |
| 2c. Talent pipeline | Placements, apprenticeships and routes in for young people and those facing barriers | Apprenticeships, T Level placements or 45-day work experience in deprived areas |
What's changing in January 2027
- A tighter model: two outcomes and six award criteria
- A £1 million threshold, with a 20% minimum weighting at £5 million or more
- A government list of community programmes bidders can support
- Target groups, including young people not in education, employment or training, care leavers and people with a long-term health condition or disability
- Environmental outcomes leave the model. Carbon is covered separately through your Carbon Reduction Plan.
What a strong response includes
- 1SMART commitments. Specific, measured and scaled to the contract.
- 2A timed action plan. What happens, when, from contract start.
- 3Metrics and monitoring. How you'll measure and report delivery.
- 4Governance. A named owner and a clear escalation route.
- 5Improvement. How feedback shapes what you do next.
How we help
A strategy that scores, and one you can deliver
We've worked with our specialist social value partner since 2021. They work with your leadership team to understand where you are today, align your approach with the latest policy and your existing ESG work, and set a clear position and measurement framework. We make sure it translates into answers that score in the frameworks and tenders you're going for.
- 1
Talk to us
We look at the frameworks and contracts you're targeting, and how social value is scored in them.
- 2
Leadership session
Our partner works with your leadership to establish where you stand and where the opportunities are.
- 3
Strategy and measures
A strategy with clear priorities, measurable commitments and a way to track delivery.
- 4
Use it to win
We help you turn it into social value answers for your next application or tender.
Talk to us about social value
Tell us what you need and we'll come back to you, or book a call with one of our team.
Speak with our social value experts
Pick a time that suits you. We'll talk through how social value is scored, explore where you stand today and discuss your options.
Social value: your questions answered
What is social value in public procurement?
The additional benefits a supplier delivers through the way it performs a contract, over and above the goods or services themselves. For central government from January 2027, that means good jobs and skills, particularly for people facing barriers to employment.
Is social value mandatory?
For buyers, largely yes. The Public Services (Social Value) Act requires public bodies to consider social value when buying services, and central government must apply the Social Value Model to in-scope contracts. For suppliers, it's a scored part of the tender, so a weak answer costs you marks.
What changes with PPN 026 in January 2027?
For central government procurements starting on or after 1st January 2027 and worth £1 million or more, the model narrows to good jobs and skills, with six award criteria. Weighting rises to at least 20% for contracts of £5 million or more, and those contracts carry at least one published social value KPI.
Can we use our CSR or ESG report as our social value answer?
Not on its own. Government guidance says corporate responsibility statements aren't contract-specific, so they won't meet the award criteria. You can refer to existing programmes to show how you'll deliver, but the score depends on what you'll do in performing that contract.
Does social value apply to frameworks like G-Cloud and DOS?
Yes. A buyer can only assess social value at call-off if it was assessed when the framework was set up. You may be asked to commit to a type of social value when you apply, then make a specific offer, with quantities and timing, when you bid for a contract.
What happens if we don't deliver what we committed to?
Your commitments go into the contract and are monitored, often as KPIs. Under PPN 026, evidence of poor performance against social value KPIs can be taken into account when deciding whether to exclude a supplier from future tenders.
We're a small business. Can we compete on social value?
Yes. Buyers must keep criteria proportionate and avoid barriers for SMEs, and responses are judged on quality, not volume. A small, specific and well-run commitment often beats a large, vague one.
Where does the environment fit now?
PPN 026 focuses central government's model on jobs and skills. Carbon is handled through Carbon Reduction Plans under PPN 006, and buyers outside central government can still set their own social value priorities, which may include the environment.
How long does it take, and what does it cost?
It depends on your size, what you already do and how far you want to go. Most organisations start with a leadership session, which shapes the scope and proposal for the rest.
Who does the work?
Our specialist social value partner, with Advice Cloud involved throughout. You'll know exactly who is doing the work before you commit to anything.