Social value is the extra benefit a UK public buyer secures through a contract, on top of what it pays for: economic, social and environmental. In central government it is scored as part of quality. Under the Cabinet Office procurement policy note PPN 002, in-scope buyers must give it a minimum weighting of 10%.
The newer PPN 026 model sets a minimum of 10% for contracts from £1 million to under £5 million and 20% for £5 million and above, for procurements that start on or after 1 January 2027.
What scores is a written plan of commitments for that one contract. Cabinet Office guidance for digital, data and technology contracts says volumes are left out of the evaluation and scoring. On those contracts, a huge headline figure earns little. An evaluator can mark a dated commitment with an owner, a measure and a reporting line, and that is what gets points.
Councils, Ministry of Defence (MOD) buyers and other bodies outside PPN 002 set their own terms, so the tender pack always beats any general figure here. This is not legal advice.
I do not write bids, so I read tenders from the seller's chair. A B2B buyer rarely signs because of one email. They check you out first, then decide. A tender evaluator runs that same audit, with a scoring sheet. Beyond the tender itself, selling to UK government as a supplier covers central government buying more broadly.
What does social value mean under UK procurement law?
The legal base is section 1 of the Public Services (Social Value) Act 2012. When a relevant authority plans to buy services, or services combined with goods or works, under the contracts that section covers, it has work to do before the procurement starts:
- Think about how the purchase could improve the economic, social and environmental well-being of its area
- Think about how the way it runs the procurement could help secure that improvement
- Decide whether to consult anyone on those two points
The duty reaches only matters relevant to the purchase, and only as far as is proportionate. The Act has applied since 31 January 2013, according to the GOV.UK information page. It asks authorities to consider. It names no themes and sets no weighting.
The Procurement Act 2023 is the framework authorities buy under now. Its contents include objectives for covered procurement (section 12), the national procurement policy statement (section 13), preliminary market engagement and award criteria.
Section 86 is the part smaller suppliers should know. Welsh Government guidance explains that it requires contracting authorities, before inviting tenders for a below-threshold contract, to consider the barriers small and medium-sized enterprises (SMEs) may face in competing and whether those barriers can be removed or reduced.
Neither Act prints a percentage. The weightings bidders argue about come from Cabinet Office procurement policy notes.
For a supplier, the working definition is narrow. Social value is what you will deliver through this contract beyond the work the contract already pays for. A charity day your company would run anyway reads as background.
Where does the 10 percent minimum weighting come from?
The floor is older than today's notes. The Social Value Act information page records a June 2018 commitment to score social value explicitly in most major contract awards. From 1 January 2021 the Social Value Model applied to new procurement, with the same minimum weighting.
PPN 002 carries the rule today. It binds central government departments, the executive agencies under them and non-departmental public bodies, for procurements run under the 2023 Act that start from 1 October 2025. Private utilities contracts and MOD defence and security contracts sit outside it. The weighting lives on the quality side of the evaluation, and you earn it with a written answer.
PPN 026 is already published. Its GOV.UK page describes a model built around boosting British jobs and skills, and it says accompanying guidance would follow in autumn 2026. The model text covers the same central government bodies and nothing below its lowest value band.
| Rule | Who it binds | What it sets | Source |
|---|---|---|---|
| Social Value Act 2012, section 1 | Relevant authorities buying services, or services with goods or works | A duty to consider well-being and consultation; no weighting | legislation.gov.uk |
| Procurement Act 2023 | Contracting authorities under the Act | The framework: objectives, policy statement, market engagement, award criteria, the SME barriers duty | legislation.gov.uk |
| PPN 002 Social Value Model | Central government departments, executive agencies, non-departmental public bodies | A minimum weighting and a menu of eight outcomes | GOV.UK |
| PPN 026 Social Value Model | The same bodies, larger contracts only | Weighting bands by contract value; jobs and skills outcomes; a social value KPI on the largest contracts | GOV.UK |
| MOD social value resource page | Suppliers bidding to the MOD | Five MOD priorities and named common mistakes | GOV.UK |
Which social value rules apply to your buyer?
Central government is the clear case: PPN 002 now, PPN 026 where the pack names it. Councils work under the 2012 Act's duty to consider and print their own weighting and themes. Council buyers work differently, as what UK councils expect from suppliers shows. NHS buyers are a separate case again, and how suppliers sell to NHS bodies covers that route.
Defence works differently. PPN 002 leaves MOD defence and security contracts out, and a GOV.UK resource page on social value in MOD procurement sets out five MOD priorities: tackling economic inequality, fighting climate change, equal opportunity, well-being and community cohesion.
That page also gives the weighting applied by local authorities and government agencies as "20% +", alongside a 10% minimum for MOD tenders. Read both as the page's own summary. The weighting printed in your tender is the one that binds. The defence buyer side has more detail in UK defence suppliers.
Wales has its own twist. The Welsh Government notes that the Act, unlike the Public Contracts Regulations 2015, sets statutory requirements for devolved Welsh authorities on below-threshold contracts. Smaller Welsh contracts still come with rules attached.
Before you write a word, pull these from the pack:
- The tender notice: who the buyer is and when the procurement started
- The award criteria: which outcome or theme is scored, and at what weight
- The evaluation instructions: the scoring scale and what a top mark needs
- Any key performance indicator (KPI) schedule or draft contract terms covering social value
Then decide. If the pack names a model or outcome, answer that first, in its own words. If it gives a weighting with no model, send a clarification question before drafting. If it gives neither, put your hours into price and quality and keep the social value answer short and specific.
What are the Social Value Model themes buyers score?
The PPN 002 model calls itself "a menu of options" and holds eight outcomes:
- "Fair work"
- "Skills for growth"
- "Resilient, innovative and flexible supply chains"
- "Sustainable procurement practices"
- "Support the reduction in crime through community cohesion, awareness raising and action"
- "Employment and training for those who face barriers to employment"
- "Creating a pipeline of opportunities for the contract workforce"
- "Increasing productivity through physical and mental wellbeing"
The buyer picks the outcomes and criteria that fit each procurement. An answer that covers all eight spends most of its words on questions nobody asked.
PPN 026 cuts the menu down. It defines social value as how a supplier will "provide good British jobs, skills and opportunities in every postcode". Its Annex A groups outcomes under good jobs and skills, including creating or retaining high quality jobs, fair working conditions, fair pay, and training or retraining.
So on central government bids under PPN 026, your workforce plan (jobs, pay, training) is the social value answer. A community sponsorship has little to attach to on that menu.
How do evaluators score a social value answer?
The PPN 002 model question asks for "specific, measurable and time bound commitment(s)", written up as a method statement with a project plan behind it. Evaluators mark that answer against the award criteria and sub-criteria the buyer published.
The Cabinet Office guidance for digital, data and technology contracts shows the mechanics. It treats social value as one element of the quality assessment, judged qualitatively only. Its template tender text asks bidders for a timed project plan and for how each commitment will be monitored, measured and reported.
That guidance was written for procurements under the 2015 Regulations. Use it as a picture of what evaluators look for, and check which rules your own tender runs under.
The commitments carry into the contract. PPN 002 requires them to be reflected in the contract as terms, KPIs or performance indicators. For contracts in PPN 026's top band, the model text says at least one social value KPI should be set, on top of the three or more KPIs that section 52(1) of the 2023 Act already requires.
Then the KPIs go public. Section 52(3), as quoted in PPN 026, requires all KPIs to be published on the central digital platform and reported on at least once every 12 months through the contract performance notice.
Each report carries a rating. The Cabinet Office KPI guidance rates performance against four set descriptions, plus "Other" for performance that fits none of them.
What can a social value measure look like? Take a supplier that commits to 6 training placements in year one and starts 5. The KPI reports 5 of 6 against target, and the contract manager rates that against the buyer's published descriptions. This is a made-up illustration, not a KPI from a real contract.
Because KPIs are published on the platform, you may be able to find KPIs other buyers set on similar contracts and use them as a starting point for your own measures instead of a blank page.
How to evidence social value in bids
Build each answer from these parts, in this order:
- The outcome and criterion the buyer selected, named in the buyer's own words
- The commitment: what, how many, for whom, where, on this contract only
- A named role that owns delivery, with time budgeted
- A timed plan with milestones by month or quarter
- A metric for each commitment, with today's baseline stated
- A reporting rhythm that matches the buyer's KPI cycle
- The contract wording you would accept, drafted by you
- One piece of past delivery that proves you can do this exact thing
The last item needs a limit. Past delivery shows the buyer your commitment is realistic, but it is never the offer itself. A polished answer built on a weak plan still scores badly.
Keep one evidence file per outcome you bid on often, with dates, numbers, the partner involved and what happened. Build it once and update it after each contract. Fresh proof written under deadline pressure is how answers end up vague.
Draft the KPI before the paragraph. If you cannot write the clause you would sign, you have a wish, and the evaluator will see it.
Then check how evaluators mark. Cabinet Office guidance on PPN 002 says social value answers are assessed against the model award criteria and sub-criteria in the tender documents, the same way as any other quality aspect. So write to each sub-criterion, one by one.
Here is an illustrative example for a central government digital services contract, where the buyer selected skills for growth and the criterion on creating training opportunities through the contract. It is a made-up example, not a marked answer from a real tender.
A weak answer:
Our people care about the communities we work in. We volunteer, support local charities and run apprenticeships across the group. Inclusion sits at the heart of our culture.
A stronger answer:
Through this contract we will create 6 paid 12-week software testing placements for people facing barriers to employment in the contract area. Two start in month 3 and four in month 9. Our delivery lead owns the plan, with one day a week budgeted. Each quarter we will report placements started, completed and moved into paid work, and we propose those figures as contract KPIs. Our training partner's commitment letter and results from our last placement cohort are in Appendix C.
The second version names the subject of the criterion, gives numbers and dates, assigns an owner, defines the measures, offers contract wording and points to proof.
How do you reach the people who shape the social value question?
Most bidders meet the social value question for the first time when the pack lands. By then the outcome is chosen. The PPN 002 model tells buyers to raise social value during preliminary market engagement, the one stage where you can talk to the buyer about it in the open.
In my own work the first conversation matters more than the pitch, and market engagement is the public sector version of it. If a buyer runs one, attend. Ask which outcome they lean toward and what delivery evidence they trust. Then ask what would stop a firm your size from bidding. On a below-threshold contract, that question goes straight to the section 86 duty.
Know who you are writing for. Before my team writes a sequence, we go through a client's past projects to find who actually made the decision. A tender splits the same way. A commercial lead runs the procurement and evaluators mark the answers. After award, a contract manager chases your figures every quarter, and that person has to be satisfied for years.
The subcontract route is the other way in. Under Outcome 3 of the PPN 002 model, sub-criterion 3a covers advertising every subcontracting opportunity on Contracts Finder. When a prime contractor commits to that outcome, its subcontract packages can appear there. For an SME, those listings are live demand from a company that already holds a public contract and a social value target.
Reach the prime before it submits. Its bid manager or social value lead needs measurable commitments to put into the answer. A specialist who can deliver them makes that person's job easier.
Keep the message short and written for that one bid manager. Name the outcome the prime is bidding against. Give one number from past delivery. Offer a signed commitment letter.
Copy cannot rescue the wrong list. Write to the few primes actually bidding against an outcome you can deliver. If you are building that list, the lists and targeting FAQ answers the common questions on how to do it.
Which mistakes make social value answers score badly?
The MOD resource page lists common mistakes, among them business as usual, relying on historical delivery, a focus on donations or volunteering, and unclear ownership. Its good practice is contract-specific requirements, SMART targets and performance management. It also says commitments are monitored and reported through the contract lifecycle, with suppliers held accountable.
Check your draft against these red flags:
- It would fit any tender you bid on this year
- No month or date appears anywhere
- No role is named as owner
- The main offer is a donation, sponsorship or volunteering day
- Numbers appear with no baseline and no reporting rhythm
- The commitment is your core service described another way
- It answers an outcome the buyer did not select
Two or more of these in one draft means it needs rewriting before you submit.
Should an SME bid on the social value element at all?
Ask one thing: can you point to where, inside this contract, the commitment is delivered, measured and reported? If not, the answer is too vague to score and too risky to sign, so do not bid on that element. KPIs get published, and a missed one is public.
Commitments also outlast the bid. When I start outbound with a client, I tell them up front that results depend on work they keep doing on their side, month after month. If nobody on their team has time to take the sales calls, the system cannot work for them. Contract KPIs behave the same way. The placements still start in month 3, even in your busiest quarter.
A quick readiness check for teams short on time:
- You can name the outcome and criterion the buyer selected
- You have one commitment you could start in the contract's first quarter
- A named role will own it, with time set aside
- You can measure it with data you already collect or can collect cheaply
- You have past delivery that proves this kind of commitment
- You would accept it as a contract KPI
If you cannot tick most of these a week before the deadline, think hard about walking away. A rushed answer loses points now and leaves you with KPIs to report for years. In outbound I put it this way: if a funnel cannot convert at small volume, more volume will not save it. Social value plans fail for the same reason. One commitment you can deliver beats six you cannot.
If a tender asks for social value commitments you are unsure you can deliver, book a call and bring the question text. I will say how I would read it as a seller.
Questions bidders ask about social value scoring
What if the buyer uses an absolute scoring method?
PPN 002 covers this. Where an in-scope central government body uses an absolute assessment methodology, the minimum becomes 10% of the non-price criteria instead of 10% of the total score. The evaluation instructions tell you which method applies, and it changes how far a strong social value answer moves your final ranking.
Are PPN 026 contract value bands measured with VAT?
Yes. PPN 026 uses the estimated contract value including VAT, so take the estimated value from the tender notice to see which band, if any, your contract falls into.
Which model applies if my tender started before PPN 026?
PPN 026 treats a procurement as commenced when its tender notice is published. Compare the tender notice date with 1 January 2027, the start date PPN 026 sets, and follow the model the pack names. If the pack still quotes PPN 002 outcomes, answer those. Writing to the jobs and skills menu for a tender scored on the old one wastes your best evidence.
If my commitment creates local jobs, where must they be advertised?
For in-scope central government contracts, PPN 002 says local roles created to deliver the contract must reach local Jobcentres through the government's Find a Job website. Build that step into your recruitment plan and your reporting, so you can show the contract manager where and when each role was advertised if asked.
Can an authority skip the Social Value Act duty?
Section 1 of the 2012 Act lets a relevant authority disregard the requirements, as far as compliance is impractical, when urgency means it cannot meet them before the procurement starts. That covers only the duty to consider. Any weighting the tender then publishes still governs the evaluation, so urgency on the buyer's side never makes your answer optional.
