Why does it matter?
PPN 002 is now the live social value policy for central government. If your organisation bids for central government contracts, this is the framework against which your social value response will be evaluated. The updated model shifts the emphasis from the broad themes of PPN 06/20 towards more specific, measurable outcomes tied directly to the government's stated missions. It also strengthens the requirement to contractualise social value commitments and track delivery through KPIs, making social value a performance management issue, not just a bid-writing exercise.
Key details
What changed from PPN 06/20
The most visible change is the removal of the COVID-19 recovery theme and the restructuring of the model around the government's five missions: kickstarting economic growth, making Britain a clean energy superpower, taking back our streets, breaking down barriers to opportunity, and building an NHS fit for the future.
The updated model contains eight policy outcomes, each with a menu of model award criteria (MACs), sub-criteria, and standard reporting metrics. Contracting authorities select the outcomes and criteria most relevant to their procurement, then evaluate supplier responses against them. In a shift from PPN 06/20, authorities are now encouraged to focus on just one outcome per procurement except in the largest contracts.
The five missions and eight outcomes
Each of the eight outcomes maps to one or more of the government's missions. While the full detail is set out in the accompanying Social Value Model document, the outcomes broadly cover areas such as creating employment and skills opportunities, supporting SMEs and social enterprises in supply chains, reducing environmental impact, promoting diversity and inclusion, and strengthening community resilience.
Minimum 10% weighting retained
PPN 002 retains the minimum 10% weighting for social value that was established by PPN 06/20. In-scope organisations with more developed social value procurement capability may increase this weighting further. The evaluation remains qualitative rather than purely quantitative, with the emphasis on specific, measurable, and time-bound commitments.
Contractualisation and KPIs
One of the most significant changes in PPN 002 is the explicit requirement for social value commitments to be reflected in the contract itself, either as contract terms, key performance indicators, or performance indicators. This aligns with the Procurement Act 2023's strengthened contract management provisions, which require KPI monitoring on contracts above £5 million. For suppliers, this means what you commit to in your bid will be contractually tracked and reported against.
Standard reporting metrics
PPN 002 introduces standard reporting metrics for each outcome, providing a more consistent basis for monitoring delivery. Contracting authorities are expected to use these standard metrics unless a suitable one does not exist for their specific context, in which case widely used industry metrics may be applied.
Transition arrangements
For procurements commenced under the Procurement Act 2023 before 1 October 2025, contracting authorities could choose to apply either PPN 06/20 or PPN 002. From 1 October 2025, PPN 002 is mandatory for all new above-threshold procurements. Framework agreements established using the PPN 06/20 model continue to use that model for call-offs, even after October 2025.
UK & public sector context
PPN 002 applies to all central government departments, their executive agencies, and non-departmental public bodies. Other contracting authorities (such as local authorities and NHS trusts) are not formally required to follow PPN 002, but many will adopt elements of the updated model voluntarily, particularly as the government's five missions framework becomes more widely embedded across the public sector.
For suppliers, the practical implications are clear. Social value responses need to be more specific and outcome-focused than under PPN 06/20. Generic commitments will score poorly. The organisations that perform well will be those that can demonstrate a clear understanding of the relevant mission and outcome, propose specific and measurable commitments, explain how they will deliver and report against those commitments, and evidence a track record of doing so on previous contracts.
The contractualisation requirement also means that social value is no longer something you can promise at bid stage and quietly deprioritise during delivery. If you commit to it, you will be held to it.