Why does it matter?
Social value has moved from a "nice to have" to a core requirement in UK public sector procurement. Since 2012, public bodies have been legally required to consider social value when commissioning services. Since January 2021, central government departments have been required to explicitly evaluate it as a scored element of all major tenders. For any organisation that supplies (or aspires to supply) the public sector, demonstrating measurable social value is now essential to winning and retaining contracts. It is also increasingly expected by private sector clients, investors, and consumers as part of broader ESG commitments.
Key details
What social value looks like in practice
Social value takes many forms depending on the context. Common examples include hiring locally to a contract, offering apprenticeships or training placements, using SMEs and social enterprises in supply chains, reducing waste and emissions, supporting community projects, and promoting equality and diversity in the workforce.
How social value is measured
There is no single universal method for measuring social value, which is one of the reasons it can feel complex. In the UK, the most widely used frameworks include the National TOMs (Themes, Outcomes and Measures) framework, which assigns proxy financial values to social outcomes, and the government's Social Value Model, which provides qualitative evaluation criteria for central government procurement.
Other approaches include Social Return on Investment (SROI), which calculates the financial equivalent of social outcomes for every pound invested, and bespoke measurement frameworks developed by individual councils and contracting authorities.
The evolution of social value
The concept of social value in UK public policy gained formal recognition with the Public Services (Social Value) Act 2012. This was strengthened considerably by Procurement Policy Note 06/20 (PPN 06/20) in September 2020, which introduced the Social Value Model and mandated a minimum 10% weighting for social value in central government tenders.
In February 2025, PPN 002 updated the Social Value Model to align with the Procurement Act 2023 and the current government's five missions. PPN 002 became mandatory for above-threshold central government procurements from October 2025.
UK & public sector context
Social value is deeply embedded in UK public procurement policy. The Social Value Act 2012 requires all public authorities to consider social value when procuring services. PPN 06/20, and its successor PPN 002, go further by requiring central government bodies to explicitly evaluate social value as part of the award criteria for all above-threshold contracts.
Many local authorities and NHS trusts have adopted even more ambitious social value policies, often applying weightings of 20% or more and requiring monetary quantification of social outcomes using the National TOMs framework. For organisations supplying the public sector, the ability to articulate, deliver, and evidence social value commitments is increasingly the difference between winning and losing bids.