Guidance

Forthcoming change: updates to the DfT value for money framework

Updated 5 November 2026

Description: updates to the DfT value for money framework

Unit: DfT value for money framework

Change announced: November 2026

Expected release date: December 2026

Description

We are updating the Department for Transport’s (DfT’s) value for money framework to further emphasise that all impacts should be considered within the value for money assessment, whether they are monetised, will be monetised in future or will remain non-monetised throughout the development of the appraisal. To support this, the updated framework advises on reporting a single monetised benefit cost ratio (BCR) metric. This differs to the previous approach which advised on reporting 3 levels of BCRs.

Detail

The department’s appraisal, modelling and evaluation strategy sets out priorities for improving the transport analysis guidance (TAG).

AMES is designed to strengthen evidence and analysis methods so that decision makers at national, regional and local levels can identify the most effective interventions and secure value for money of investments. One of the key actions is to refresh our guidance on the role of value for money in decision-making, reflecting the Green Book and develop examples of good practice. This is to address 1 of 4 key priority areas, which is to promote transparent decision making.

The first value for money framework was published in 2017.

This updated framework further emphasises that all impacts should be considered within the value for money assessment, whether they are monetised, will be monetised in future or will remain non-monetised throughout the development of the appraisal.

This is to ensure a comprehensive approach to value for money, ensuring the assessment takes the full range of welfare impacts into account – not just monetised benefit cost ratios.

To support this, the updated framework advises on reporting a single monetised BCR metric to make value for money more meaningful by simplifying the presentation of the value for money assessment. This differs to the previous approach, which advised on reporting 3 levels of BCRs to reflect the greater degree of uncertainty in the types of monetised impacts^{[footnote 1]} included in each.

In 2024, the framework introduced the level 3 ‘indicative’ BCR. This updated framework collapses all monetised impacts into a single monetised metric. The underlying methods will remain the same. This means the distinction between level 1, 2 and 3 monetised impacts will remain in the framework. The changes only involve a reduction in the production of BCRs to simplify the presentation of the value for money assessment.

These changes implement key actions set out in DfT’s AMES and the Green Book to:

1. Help make the guidance and its application simpler and more accessible to decision makers.

2. Reduce emphasis on BCRs and focus more on making balanced value for money judgements.

This update additionally reflects wider updates since the May 2025 publication, including updates to:

• TAG units on uncertainty published in December 2025
• reflect the updated 2026 Green Book and TAG requirements for appraising private finance options and guidance on the treatment of economic transfers in cost-benefit analysis
• reflect wider TAG changes on advice for proposals with international aviation and international shipping greenhouse gas emission impacts

This update replaces former versions of this guidance.

Contact

For further information on this guidance update, please contact:

Transport Appraisal and Strategic Modelling (TASM) division
Department for Transport
First floor, Great Minster House
33 Horseferry Road
London
SW1P 4DR
tasm@dft.gov.uk

1. DfT distinguishes between 3 types of monetised impact – established monetised (level 1), evolving monetised (level 2) and indicative monetised (level 3) impacts. ↩