Guidance

Guidance on using PPN 026: The Social Value Model (HTML)

Updated 28 October 2026

1. Introduction

1.1. Definition

The government wants taxpayers’ money to be spent in a way that values and invests in local communities. For in-scope central government contracting authorities, social value through procurement using the Social Value Model is defined as:

‘taking account of how a supplier will work for our communities to provide good British jobs, skills and opportunities in every postcode’

1.2. Who is this guidance for?

This guidance is for commercial practitioners procuring contracts in scope of Procurement Policy Note 026 (PPN 026). It explains how to use PPN 026: The Social Value Model in all stages of the procurement process.

PPN 026 replaces all previous PPNs on social value. From 1 January 2027, you should apply PPN 026 to new covered procurements worth £1m or more. If you award a contract using a framework set up before this date, you may need to consider the PPN in use at the time the framework was awarded. For frameworks procured:

• before 1 January 2027 but on or after 24 February 2025, use PPN 002 ^{[footnote 1]}
• before 24 February 2025 but on or after 1 January 2021, use PPN 06/20 ^{[footnote 2]}

If using previous models, you should still select outcomes that deliver jobs, skills, and opportunities. See section 4.3 for details on awarding contracts using frameworks.

You should apply the correct Social Value Model weighting and publish Key Performance Indicators (KPIs) as needed, depending on contract value. You do not need to apply PPN 026 if a modification changes the value of the contract.

Please contact info@gca.gov.uk if you have any questions.

1.2. Wider obligations and value for money

You should apply this guidance in compliance with legal requirements and international obligations. Departing from this guidance is permitted when necessary to comply with international agreements, and to keep requirements relevant and proportionate and ensure fair treatment and non-discrimination.

See Annex E for more information on social value in the context of value for money, and how PPN 026 aligns with other procurement policies including the Green Book and National Procurement Policy Statement (NPPS).

1.3. The Social Value Model award criteria

PPN 026 sets out the government’s social value priorities for procurement. It provides model award criteria for you to choose from. See Annex B for the full Model, including sub-criteria, standard reporting metrics, and the target cohorts.

Outcome	Social Value Model award criteria
Good Jobs	1a. Create high-quality jobs
Good Jobs	1b. Fair working conditions
Good Jobs	1c. Fair pay
Skills	2a. Training / Retraining
Skills	2b. In-work progression
Skills	2c. Talent Pipeline

1.4. Actions to take

This guidance covers the four stages of the commercial lifecycle and corresponding actions.

Stage	Actions
Plan	1. Build awareness within your organisation of using the Social Value Model to deliver jobs, skills and opportunities.
Plan	2. Identify your procurement pipeline and engage with stakeholders to determine the social value outcomes your contracts can deliver.
Define	1. Assess the market and determine the market maturity for successfully delivering Social Value Model outcomes.
Define	2. Identify achievable Social Value Model outcomes, criteria, and sub-criteria that align with your organisation’s objectives and your legal duties, and are additional to the core purpose of the contract.
Define	3. Set an effective scoring methodology to evaluate social value in suppliers’ tenders. See Annex C for an example methodology.
Define	4. Test your selected policy outcomes, criteria, sub-criteria, metrics and scoring methodology during preliminary market engagement.
Define	5. Where relevant, eEncourage suppliers to build relationships with relevant Community Programmes during preliminary market engagement.
Procure	1. Complete the Social Value Model question by including relevant target cohorts, award criteria, and sub-criteria for your selected Social Value Model outcome(s) in your procurement documents.
Procure	2. If appropriate, include the List of Community Programmes, removing any sections that are not relevant to your contract.
Procure	3. Evaluate the quality of supplier tenders against the Social Value Model award criteria and sub-criteria published in your tender documentation.
Procure	4. Notify successful and unsuccessful suppliers and send assessment summaries that include details of your evaluation.
Procure	5. Agree the Key Performance Indicator or performance indicator, with the supplier for the social value commitments they made.
Procure	6. Document the social value commitments in your contract.
Manage	1. Manage the social value deliverables against the supplier’s commitments set out in your contract.
Manage	2. Publish a contract performance notice at least once every 12 months for contracts worth £5m or more, detailing supplier performance against your agreed metrics.
Manage	3. Government departments should submit quarterly social value reports to the Cabinet Office reporting all social value commitments using the standard reporting metrics.

2. Plan

In the ‘Plan’ stage you will prepare to select the most appropriate outcomes and Social Value Model award criteria to achieve the government’s social value priorities.

2.1. Build awareness

You should share this guidance with colleagues outside your commercial function to raise awareness and familiarity with the Social Value Model and how it supports local communities and the government’s priorities. You can use this guidance to develop an effective commercial strategy that sets clear objectives that align the government’s social value priorities set out in PPN 026 with your organisation’s goals.

Public sector staff can access training at the Government Commercial College and attend Cabinet Office Community of Practice webinars. The cross-government Social Value Network shares knowledge and best practice across central government departments. Departments should nominate a lead representative to share this knowledge across their organisation, executive agencies, and non-departmental public bodies. To join the network, please contact info@gca.gov.uk.

2.2. Procurement pipeline plan

You should speak to procurement, commercial, and finance teams to identify procurements in your pipeline that:

• have a total contract value of £1m or more ^{[footnote 3]}
• will have a tender notice published on or after 1 January 2027
• will be awarded under the Procurement Act 2023 

Identifying future procurement activity helps you to identify key markets you buy from regularly and conduct better preliminary market engagement with suppliers and other stakeholders. Engaging with the market early gives bidders the best chance to understand what will be expected of them, so they can submit a high quality tender.

For procurements with a tender notice published before 1 January 2027, you are encouraged to apply PPN 026. However, you can use an earlier Social Value Model from before this date if applying PPN 026 would invalidate previous market engagement activities.

PPN 026 does not apply to utilities contracts awarded by private utilities^{[footnote 4]} or to contracts where the primary purpose is overseas delivery (for example, overseas embassies). However, private utilities are encouraged to apply this PPN to help achieve jobs and skills objectives through their procurements.

3. Define

In the ‘Define’ stage you will identify appropriate Social Value Model outcomes, criteria, sub-criteria, and metrics to include in your procurement documents. You should engage with all stakeholders to understand their expectations and capability for delivering social value outcomes.

3.1. Assess the market

You should determine the market maturity for delivering successful Social Value Model outcomes in the markets you buy from. Many suppliers and industry groups actively promote their social value activities which can help you understand market capability. You should also consider the market’s cost structure, particularly its labour and bought-in costs, because this may impact the Social Value Model outcome most appropriate for your contract.

Trade unions are important stakeholders that contracting authorities can engage to support the selection of outcomes and sub-criteria where relevant to the procurement. Where an independent trade union or independent unions are recognised by companies operating in a relevant sector , you should consider engaging these unions. Where no union is recognised, you may search for relevant independent unions, for example by using the TUC’s Union Finder tool.

You should determine the likelihood of international suppliers bidding on the contract. You should be aware of how your procurement may impact the UK’s international obligations, including the prohibition on conditions or undertakings which encourage local development. You have a legal duty to ensure that the Social Value Model commitments within your contract comply with these obligations, including by not discriminating against or deterring treaty state suppliers from bidding on your contract. Discrimination arises where a treaty state supplier is treated less favourably than a UK supplier. In the social value context, discrimination is likely to arise where a treaty state supplier cannot bid on your contract or is deterred from doing so by, for example, higher costs or practical obstacles. You must not apply PPN 026 to your procurement if it would breach your duty to treaty-state suppliers.

You may find it helpful to keep records of previous market assessments, pre-market engagement, and attainment against social value metrics. This will help you determine what works well and where you can improve the delivery of Social Value Model outcomes.

If the contract will be delivered in a specific location, you may find it helpful to understand the needs of the local community. This includes identifying the target cohorts who would most benefit from good jobs and skills relevant to the contract, or who face barriers to entering the contract workforce. You can find information to support this in Annex E.

Where possible, and consistent with the UK’s international obligations, you should consider how the Social Value Model can be used to support the delivery of jobs, skills and opportunities for the target cohorts in contracts that are not location specific.

Health can be a key factor in whether people can enter, remain in, and progress in work. Worsening physical or mental health can lead to weaker economic growth and reduced labour supply. When applying the Social Value Model, you should consider whether proposed activities are likely to benefit target cohorts and communities experiencing poorer health outcomes, long-term health conditions, disabilities or health-related barriers to employment.

Evaluating if suppliers have policies that encourage employees to stay, such as embedded training and development programmes or routes for progression, can support job retention.

The government wants to create new jobs and skills in innovative high-growth sectors as set out in the UK’s Industrial Strategy. Rapidly expanding headcount allows scale-ups to absorb significant numbers of workers, creating high-skill, high-value employment.

3.2. Identify outcomes, criteria and sub-criteria

You can find the full Social Value Model in Annex B. Using your research, assessments, and knowledge of your organisation’s and the Government’s social value objectives, identify Social Value Model criteria and sub-criteria which are relevant to your selected Social Value Model outcome and contract. This should be an evidence-based decision and form part of your commercial business case. You should also account for any potential impact on the resources needed to monitor social value delivery during contract management. 

You should select the minimum number of criteria and sub-criteria needed to achieve your intended outcome. For individual contracts it may be appropriate to select more outcomes, criteria and sub-criteria than usual. However, you should ensure your selection is proportionate and not overly complex or burdensome, particularly for SMEs and VCSEs.

Your decision should be guided by:

The nature of the requirement

• are there typically entry-level jobs or known skills gaps in this market? 
• do support services, such as training or technical support, need to be local to ensure service delivery and/or continuity?
• are there security or data issues which impact the type of social value you might ask for, such as security clearances?
• are there security or data needs which impact service delivery location?
• can you consult unions or  industry bodies to inform your approach? 
• is the market you are buying from one or more of the eight industrial strategy growth sectors?^{[footnote 5]}

Your findings from preliminary market engagement

• are you likely to receive bids from suppliers outside of the UK and, if so, how can overseas suppliers deliver social value?
• are you likely to receive bids from SMEs or VCSEs and can you encourage their participation?
• will suppliers need additional workforce capacity to deliver the contract and, if so, over what period?
• are your selected criteria already a core requirement in the contract specification? If so, select alternative criteria.
• which Social Value Model award criteria did suppliers suggest offered the greatest opportunity?

Under the Procurement Act 2023, contracting authorities must ensure the award criteria are a proportionate means of assessing tenders, having regard to the nature, cost and complexity of the contract. Proportionate means appropriate to achieve the aim but no more burdensome than necessary to the supplier or the contracting authority.

Relevance, proportionality, equal treatment

The Social Value Model includes all the options approved by the government but in order to comply with your legal obligations under the Procurement Act 2023 you must ensure your selected Social Value Model outcomes, criteria, and sub-criteria are:

• relevant to the subject matter of the contract
• proportionate to the contract
• compliant with the duties of equal treatment and non-discrimination.

Non-discrimination is dealt with below in relation to overseas and treaty-state suppliers

Criteria will be relevant where there is a direct connection to the goods, services, or works being procured, for example, including workforce-related criteria when a contract involves a high proportion of labour. 

Criteria will be proportionate if they correspond appropriately to the type, complexity, and cost of the contract without going beyond what is needed to meet requirements. For example, expecting a new apprenticeship on a short, low value contract would not be proportionate.

To comply with the equal treatment obligation, treat suppliers in identical or comparable situations in the same way, unless objective differences justify different treatment. If different treatment is justified, ensure it does not give any supplier an unfair advantage or disadvantage.

Non-discrimination and other international obligations

Section 90 of the Procurement Act 2023 prohibits discrimination against treaty-state suppliers. You can find more guidance on identifying treaty-state suppliers and this duty in Cabinet Office guidance^{[footnote 6]}. Discrimination may arise where award criteria create barriers for treaty-state suppliers, for example if they cannot be met without a UK workforce but the contract could be delivered from outside the UK, or because delivering them would be disproportionately expensive for a treaty-state supplier and therefore they are deterred from bidding.

If market engagement has indicated that treaty state suppliers are likely to bid on your contract and/or it is capable of delivery, wholly or partly, from outside the UK, you may need to consider alternative ways of applying the Social Value Model which are appropriate to achieve the successful delivery of social value outcomes and are proportionate, linked to the subject matter of the contract, non-discriminatory and comply with other international obligations. You should consider amending the model question, outcomes, criteria, and/or sub-criteria, or not applying the Social Value Model if it would breach your duties to treaty-state suppliers. If a supplier proposes to deliver social value via a subcontractor, you cannot require that the subcontractor is a UK supplier or give preferential treatment to a supplier whose subcontractor is based in the UK.

Barriers to entry

You should minimise barriers to entry for start-ups, SMEs, VCSEs, or mutuals when selecting Social Value Model outcomes, criteria and sub-criteria. You should help suppliers propose activities they can integrate into their operating model for your contract. You can use your assessment of the market to understand what is feasible for potential suppliers to achieve.

You should avoid changing the criteria and sub-criteria if possible because they are designed to be ready to use without change. This reduces the burden of running procurements and provides consistency for suppliers.

3.3. Set an evaluation methodology

You must be transparent with potential suppliers about the evaluation criteria and evaluation process, as with all public contracts.

The evaluating panel should use the Social Value Model question award criteria and your selected award criteria and sub-criteria to evaluate and score bids. You should establish an evaluation methodology (the way bids are scored) appropriate for your contract and ensure the evaluating panel scores the responses using the methodology published in your tender documents.

You should design an effective, objective and non-discriminatory scoring methodology that suits the contract and enables clear differentiation between tenders. Use scoring bands or a method that clearly differentiates suppliers’ responses to the Social Value Model question. Annex C sets out an example method. However, you should always use a scoring approach that best fits your wider procurement and commercial objectives.

Refer to the Sourcing Playbook and Bid Evaluation Guidance Note^{[footnote 7]} for more information on evaluation methodologies. You should seek legal advice when deciding upon assessment methodologies if needed.

3.4. Test outcomes

When conducting market engagement, you must remain compliant with the Procurement Act^{[footnote 8]}, which includes a requirement to publish a preliminary market engagement notice if preliminary market engagement is carried out. Preliminary market engagement can help you develop a high-quality procurement with more successful social value outcomes.

During preliminary market engagement you should test the selected Social Value Model outcomes, criteria, sub-criteria, and metrics with potential suppliers to confirm your selection is still relevant to the subject matter of the contract, proportionate, and non-discriminatory. You can hold engagement events with potential suppliers to better understand what affects the cost, quality, and efficiency of delivering social value. 

You can increase the Social Value Model weighting above the minimum requirement to create more or better jobs, skills, and opportunities for local communities in well-established and capable markets. This should be balanced with ensuring your contract remains deliverable, provides value for money and compliance with legal duties.

4. Procure

In the ‘Procure’ stage you will create and publish the tender documentation needed to run a procurement, evaluate tenders, and award and commence your contract.

Competitive Tendering Procedures

You should assess social value as an award criteria, not as a condition of participation. The Social Value Model is designed to be incorporated in either an open or competitive flexible procedure (as well as the establishment of a framework and subsequent call offs). 

You should consider if a short dialogue stage, or the option to do so, would provide an opportunity to ensure social value commitments are clear, deliverable, and optimised, if using a competitive flexible procedure. You can apply the social value evaluation, as with other award criteria, to limit the number of participating suppliers invited to participate in further stages of a competitive flexible procedure. As always, the criteria by which you choose suppliers to proceed must be in the tender notice or associated procurement documents.

If it is necessary to amend or refine your social value evaluation criteria, this must be done in accordance with the Procurement Act^{[footnote 9]}.

Competitive tendering procedures (PDF, 1,017KB); and Modifying a competitive procurement (PDF, 207KB)

4.1. Set the Social Value Model question

You should include the Social Value Model question below and include the Social Value Model outcome and corresponding criteria and sub-criteria.

Social Value Model Question

In no more than [number of words] please set out the specific, measurable and time bound commitment(s) your organisation will make to deliver [Social Value Model outcome] in [the relevant area].

Your response will be assessed against the sub criteria and following additional award criteria:

1. The response supports one or more Community Programmes evidenced by a dated letter to the Community Programme/s listed contact, confirming that, subject to the award of the contract, you will support the programme and that this is additional to any support proposed or currently offered and/or provided.

Or, if the response is not supporting one or more Community Programmes:

2. The response includes all of the following:

a. a description of how the commitment meets the award criteria and sub-criteria

b. a specific target cohort, or details of how you will identify and define a target cohort (if not already identified by the contracting authority)

c. a description of how you will identify and reach the target cohort, how you will design or refine and tailor the offer to the target cohort

d. a description of how you will engage with staff, suppliers, customers and communities (as appropriate) through the delivery of the contract to deliver the social value commitment. For example, engagement, co-design or creation, training and education, partnering or collaborating, and volunteering

And, in all cases a method statement that will be assessed against the following Implementation Criteria: 

3. A specific, measurable and time-bound commitment and implementation plan including the quantities (e.g. jobs created, key milestones and deliverables) which you are committing to and against which your performance will be measured. If your commitment relates to an activity listed in the list of standard reporting metrics, use the appropriate metric to define your commitment

4. A description of how you will prepare and support individuals that participate in the planned activity including how you will end the activity. Illustrative For examples are, joining instructions, confidence-building activities, points of contact, signposting participants to further training, guidance or job opportunities at the end of the contract

5. A description of how you will end the activity in a manner that will help individuals progress, Illustrative examples are signposting participants to further training, or job opportunities at the end of the contract, guidance, or CV-writing advice

6. Plans for publishing your commitments and performance for transparency.

You should review the Social Value Model question and award criteria to maintain relevance, proportionality, equal treatment and non-discrimination. Ensure the question continues to comply with and advance the objectives of the PSED and adjust the Social Value Model award criteria or sub-criteria to meet these requirements if needed.

You should determine an appropriate word or page limit for the response. This will depend on the nature of the suppliers and the selected Social Value Model outcome criteria. Ensure the limit is as low as possible but still allows bidders to provide enough detail needed for a fair evaluation without placing excessive burdens on bidders or evaluators. Consider providing a structure or template to help the evaluating panel compare bids against the award criteria.

Minimum weighting for social value

You should ensure the Social Value Model question is weighted correctly as part of the overall score available for suppliers bidding on a contract. If you use an absolute methodology such as Price per Quality Point (PQP) or Value for Money index, this will still be either 10% or 20%.

The table below sets out the weightings to be applied. Contracts must also meet the relevant public contracts threshold. For example a works contract valued at £4m is not in-scope because it is below the public contract threshold for works.

In all cases, clearly state the Social Value Model weighting in your procurement documentation.

Threshold	Minimum weighting
Public contract threshold[footnote 10] or higher, but lower than £1m	0%
Public contract threshold, and £1m or higher, but lower than £5m	10%
£5m or higher	20%

4.2. Additional Resource: List of Community Programmes

A List of Community Programmes will be published to support this guidance in the future. It will provide information on existing schemes that suppliers can support as a way of delivering their social value commitments. It will provide a route for delivering place-based social value that supports target cohorts and local communities.

You should review the List and provide relevant schemes as a list under your selected Social Value Model award criteria as additional information for bidders in your tender documents. You must make clear to suppliers that the List is an optional resource and they do not need to deliver social value through a Community Programme.

After confirming the question, outcome, criteria, sub-criteria and List of Community Programmes align with your organisation’s objectives and help suppliers deliver impactful Social Value Model outcomes, you should publish all the required tender documents on the Central Digital Platform.

4.3. Evaluating suppliers’ responses

You should evaluate and score the quality of a supplier’s social value commitments in the same way as other quality award criteria, whether at the intermediate or final assessment stage.

The Social Value Model is designed to avoid creating barriers to entry for new market entrants, SMEs, and VCSEs. Although suppliers will put forward specific, quantifiable commitments, your assessment should remain qualitative and only score how the method statement and implementation plan will achieve the Social Value Model outcome, award criteria, and sub-criteria. You should not score the quantity of what a supplier has committed to but it should be included as a commitment in the final contract, and monitored during the ‘Manage’ stage. Annex A sets out exemptions to this requirement.

Suppliers should commit to delivering social value that is additional to the core contract. For example, a contract for training services cannot claim those same services as social value under Social Value Model award criteria 2a. However, offering to participate in a Community Programme that provides training services may be appropriate. This does not mean that the commitment needs to be an entirely new initiative. A supplier can expand an existing activity if it can show that the expansion is a direct result of winning your public contract and not an activity that was already offered and delivered for another public contract or part of wider corporate activities.

Evaluating commitments using Community Programmes

Delivering an activity through a Community Programmes provides a structured way for suppliers to achieve Social Value Model outcomes, rather than setting up their own activities. Such schemes may also give better access to information on target cohorts and local communities. Community Programmes will need to provide a letter detailing the bidder’s commitments. You should include this letter in your contract to make it contractually binding. A template letter is provided in the List of Community Programmes and Annex D.

When using the example standard score allocation model at Annex C, a supplier committing to support a Community Programme that also meets all the Implementation Criteria should receive a minimum score of 6, but can still score additional points when answering the other parts of the Social Value Model question.

Suppliers should still answer questions 3 to 6 of the Social Value Model question and you should evaluate this in the same way as suppliers not supporting a Community Programme.

Direct contract awards

You do not need to apply PPN 026 if awarding a public contract directly to a supplier of your choosing without a competitive tendering procedure. However, you should apply social value to direct contract awards where it is still appropriate for the contract. 

Evaluating social value commitments at the framework level

Frameworks can drive consistent policy implementation and influence social and economic outcomes across broad and diverse markets and therefore are in scope of PPN026 for in-scope organisations. However, mandating fixed Social Value Model weightings at the framework level can be counterproductive and evaluation should be linked to the additional benefit provided by awarding a specific contract to a supplier. However, this cannot be accurately assessed at the framework level because the subject matter of call-offs, location, supplier, and purpose of any call-off contract may be unknown. Additionally, setting social value criteria at the framework level may create barriers to participation for suppliers.

If you are setting up a framework for use by contracting authorities in scope of  PPN026, you do not need to apply the minimum percentage weighting for the Social Value Model when awarding framework contracts. However, you should ensure that any in-scope framework allows contracting authorities to explicitly and objectively evaluate social value when awarding call-off contracts, in accordance with PPN 026 e.g. that allows for a 20% weighting for call-offs valued at £5m and above. To allow this in compliance with the Procurement Act you must include a form of social value assessment when procuring the framework itself.

GCA and other Central Purchasing Bodies set up frameworks that need to be used by a range of contracting authorities that are both in-scope of PPN026 and others that are not. Therefore, if you are setting up a framework of this nature, you need to consider at the framework design stage how you will build in flexibility to allow buyers to evaluate social value outcomes of their own choosing and allow for this in the call-off procedures.  This flexibility should be proportionate, comply with international obligations, and allow contracting authorities to meet wider organisation policies or strategies. You should provide guidance documents for contracting authorities explaining how in-scope contracting authorities can apply PPN 026 effectively in call-off contracts.

Call-offs - award via a competitive selection process

You should follow the framework’s evaluation procedure to evaluate potential suppliers’ commitments during the call-off stage.

Call-offs - award without competition between suppliers

If a framework allows for call-off awards without competition between suppliers, the framework provider should have secured a commitment from all suppliers to deliver Social Value Model outcomes as a condition of accepting a place on the framework. When awarding a call-off contract in this situation, you should agree the specific Social Value Model outcomes with the supplier and include them in the contract and monitor this as part of ongoing contract management.

Evaluating social value commitments in procurements using dynamic markets

You do not need to set up dynamic markets in a specific way to evaluate using Social Value Model at a later stage. It should be evaluated in the competitive flexible procedure making use of the dynamic market in accordance with PPN 026.

Social Value and Tendered Price

Procurements for high-value contracts will normally be expected to require suppliers to provide a clear and transparent cost model that can be monitored during the contract lifecycle. If there are costs associated with delivering social value they should be detailed within the cost model and justified through your business case. The delivery of social value should also not be in the form of financial donations either to your contracting authority, a Community Programme, or other organisation that delivers social value outcomes.

4.4. Notify unsuccessful bidders

You should notify unsuccessful suppliers and send an assessment summary detailing how they have scored on the Social Value Model question. You should consider providing additional feedback to help suppliers in future.

4.5. Metrics for a Key Performance Indicator (KPI)

You should agree metrics with the successful supplier to hold them accountable for delivering their social value commitments. You should use the standard reporting metrics if they are provided for the sub-criteria you have selected. If they are not provided, you should adapt the standard reporting metrics or agree new reporting metrics with the supplier. You should adapt or agree new metrics if reporting against them would be discriminatory when applied to a treaty-state supplier. 

You should ensure any KPI or performance indicator is a combination of a deliverable target and a reported numeric value which you will use to measure the delivery of the target. The standard reporting metrics have been designed in this way. You should also ensure that your awarded contract has the provisions needed to ensure you can collect the data required, and seek the supplier’s permission to publish this data if you need this.

You should incorporate the Social Value Model commitments set out in the winning supplier’s bid into your contract. For contracts valued at £5 million or more^{[footnote 12]}, set at least one Social Value Model KPI. You should set and publish this KPI on the Central Digital Platform in addition to the three KPIs that may be required by the Procurement Act^{[footnote 13]}. If you cannot publish using the Central Digital Platform, you should make arrangements to publish the Social Value Model KPI elsewhere. You are also encouraged to set a Social Value Model KPI in contracts with a value below £5m to monitor social value delivery if appropriate.

You should develop suitable reporting thresholds and a methodology to determine performance, for example:

• Good: The supplier is meeting or exceeding the social value KPI targets and/or deliverables to agreed milestones
• Approaching target: The supplier is close to meeting the social value KPI targets to agreed milestones
• Requires improvement: The supplier’s performance is below the social value KPI targets or behind schedule
• Inadequate: The supplier’s performance is significantly below the social value KPI targets or behind schedule
• Other: Performance cannot be described as good, approaching target, requires improvement or inadequate (further information here^{[footnote 14]})

These ratings should be appropriate to the contract and Social Value Model outcome. You can adjust the ratings before or during the contract lifecycle to reflect wider circumstances or to challenge the supplier to achieve better outcomes, become more efficient, or innovative over time.

You should ensure that the monitoring and reporting of social value outcomes is appropriate and feasible, and whether it provides a suitable incentive for the supplier without being overly burdensome. Use the information you gained during the ‘Define’ stage to assess the capability of the supplier to deliver, monitor, and report KPIs. If performance cannot be assessed using a KPI appropriately, you should consider setting performance indicator targets or other contractual terms which bind the supplier to delivering social value outcomes. 

You should ensure the details of any social value KPIs are included in your contract details notice when this is published.

5. Manage

The ‘Manage’ stage of the commercial lifecycle is where you monitor performance of the contract, build beneficial relationships with your suppliers, and ensure that contractual obligations are being met, resolving any issues or disputes if needed.

5.1. Manage deliverables

You should engage regularly with your suppliers to ensure they are meeting contractual requirements and monitor their performance against the social value KPIs or performance indicators. If a supplier struggles to meet expectations, you should investigate how it will resolve issues. You should agree changes to KPIs or performance indicators if needed to ensure they remain an appropriate measure of the supplier’s performance.

In exceptional circumstances, you should remind suppliers that evidence of poor performance against the social value KPIs can be used to exclude them from bidding on future contracts.

5.2. Publish a contract performance notice

You should publish a contract performance notice on the Central Digital Platform at least every 12 months for contracts worth £5m or more. This should include the supplier’s performance against the social value KPIs, in addition to any other KPIs set for the contract. You can use the publication of the contract performance notice as an opportunity to engage with the supplier and ensure they continue to meet expectations.

In the event that a contracting authority considers that a supplier is not performing a public contract to its satisfaction (and the supplier has been given a proper opportunity to improve performance but failed to do so), they should publish information containing the details of the failure to perform.^{[footnote 15]} The supplier can then, at contracting authorities’ discretion and if the circumstances giving rise to the poor performance are continuing or likely to occur again, be excluded from future procurements.^{[footnote 16]}

5.3. Quarterly social value reporting

If the Social Value Model’s standard reporting metrics have been used, central government departments should report the numerical and social value KPI attainment data to the Cabinet Office each financial quarter. This data is used to assess how frequently each Social Value Model outcome, criteria, and sub-criteria is applied in procurements and how successfully suppliers deliver against their commitments.

Annex A: Additional Measures to Maximise Social Value Model Outcomes

The additional measures set out in this Annex offer additional ways to maximise social value outcomes. Consideration of these measures is more complex, so you should take extra care to ensure that requirements meet your obligations on relevance, proportionality, equal treatment and non-discrimination under the Procurement Act 2023 and the UK’s international obligations.

If you choose to adopt these additional measures, you must seek advice from your organisation’s legal advisors to assess compliance with your legal obligations before proceeding.

1. Taking into account the scale or volume of social value offered

For contracts valued at £5m or more you may consider scoring quantitative commitments as part of the Social Value Model’s sub-criteria 1a, for example:

• jobs created for individuals that are in the NEET category;
• jobs created (for individuals who are not in the NEET category);
• jobs created in a high-growth sector;
• the number of apprenticeships created.

You should consider this on a case by case basis but for higher-value, longer-term contracts where, based on your market research and engagement you are confident that this would not present a barrier to entry for SMEs, VCSEs or treaty-state suppliers, this can help secure additional jobs or apprenticeships as a Social Value Model outcome. 

2. Retaining jobs or apprentices and permitting the redeployment of staff

You can consider scoring methodologies that account for the retention of jobs or apprentices in the contract workforce instead of, or in addition to, the creation of new roles. Alternatively, you could decide to take into account the redeployment of staff or apprenticeships. For example, if the nature of the market and contract is unlikely to lead to new jobs created, but there is an opportunity to take into account the social value achieved if suppliers demonstrated that they already work with people set out in the list of target cohorts (e.g. people in the justice system or care leavers) and they would be deployed to deliver the contract, you could take this into account in decision-making. You should set out clearly to potential suppliers that you will take this into account when scoring their bids and be particularly aware of the following risks:

• scoring retention may inappropriately favour incumbent suppliers who are already employing staff on a contract, thereby creating a barrier to entry;
• potential suppliers (either incumbent or new) may leverage the risk of jobs or apprenticeship losses to score additional points;
• scenarios where efficiencies are likely because technologies have changed; 
• due to double-counting, or the rotation of the same small group of people to new contracts

You should consider how your scoring methodology can ensure that new suppliers are not scored unfairly when compared to an incumbent supplier on an existing contract, and evaluate whether there is a genuine risk of roles being lost in the contract workforce, particularly in target communities and cohorts, in suppliers bidding on the contract.

3. Scoring inherent social value

Some organisations, such as VCSEs, can deliver social value as standard practice. You can consider this in the evaluation, but delivering the Social Value Model outcome should be additional to the core contract specification.

For example, if a contract provides employment support services to care leavers, you should not consider the societal benefit of employment support services as delivering a Social Value Model outcome. However, you can score the employment of care leavers working on the contract if it aligns with the Social Value Model award criteria and sub-criteria you included in the Social Value Model question and the supplier will expand employment as a result of winning the public contract. This is because it delivers the selected Social Value Model outcomes for a target cohort.

4. Community Programmes and high bid volumes

You may engage with Community Programme organisers during the preliminary market engagement process, and where you expect a high number of bidders you should agree a suitable handling process. This may include activities such as dialogue sessions built into the procurement process so each supplier has the opportunity to agree commitments with the Community Programme if they wish to do so.

Annex B: The Social Value Model 

Outcome 1: Good jobs offering fair pay and good working conditions, helping people to get a job, stay in work, and progress in their careers, with good employment opportunities across the country.

Criteria	Sub-criteria	Standard reporting metric
1a. Create good jobs or apprenticeships	- create new jobs on the contract workforce in the relevant area to meet economic growth objectives and that represent, sustainable employment opportunities - new employment opportunities created for those listed in the Target Cohorts  - new jobs created align with innovative, or high-growth sectors as set out in the UK’s Industrial Strategy; - create new apprenticeships on the contract workforce in the relevant area to meet economic growth objectives, including supported apprenticeships - identify and designate support to increase employment in UK-based critical manufacturing sectors  - activities to increase the number of SME, scale-ups and VCSEs in the supply chain - adaptations to recruitment procedures to help target communities or cohorts into employment	- 1ai. Number of jobs created under the contract, by UK region - 1aii. Number of apprenticeships (Level 2, 3, and 4+) created or retained under the contract, by UK region - 1aiii. Number of jobs aligned with Industrial Strategy high-growth sectors - 1aiv. Number of jobs created which address critical manufacturing in the UK - 1av. Number of new entrants supported in critical manufacturing sectors in the UK to develop supply chain capacity - 1avi. Number of SMEs and VCSEs in the supply chain - 1avii. Number of jobs created through delivery of the contract, including in supply chains
1b. Fair working conditions	- contracts that reflect actual hours worked, with a mechanism for six-monthly reviews (and/or the ability to request a review more frequently) and adjust contracts if actual hours regularly exceed contracted hours or if the employee requests a change in actual hours worked - plans to engage the contract workforce in deciding the most important workplace issues to address and how identified issues will be acted upon, monitored, and reviewed - provide parental, family and kinship leave such as offering paid maternity, paternity, adoption, or carer’s leave beyond the statutory minimum length of time and pay - special or personal (or equivalent) leave provisions to support workers experiencing situational difficulties or requiring time off work, for example to allow survivors of domestic abuse to attend court hearings - provide or develop safeguarding plans for workers who require these arrangements, including upholding existing obligations around domestic violence and third party harassment - offer clear information to employees on flexible working arrangements, working hours, and alternative work location options, guidance on how to apply for these arrangements, and a commitment to meet these requests where possible to do so - offer clear information to employees on workplace health and wellbeing support, occupational health provision, reasonable adjustments, and support for employees returning after illness, guidance on how to apply for these arrangements, and a commitment to meet these requests where possible to do so - employ staff on permanent , direct contracts, minimising the use of temporary or agency staff especially where these staff may have less favourable terms and conditions than permanent, directly employed staff - demonstrate an understanding of local health inequalities, long-term health conditions, disabilities or other health-related factors that may act as barriers to employment and fair work opportunities, and propose proportionate and targeted actions to address these issues through delivery of the contract.  - adaptations that support the target community or cohort to stay in work on the contract - inclusive workplace practices on the contract implemented and embedded or strengthened within suppliers and their supply chains - activities that improve confidence, wellbeing and mental health among target communities and cohorts in the contract workforce. - ensure that if there is a recognised trade union, engagement is facilitated during the new-starter induction process - demonstrate transparent union access agreements with regular access to relevant workers to encourage meaningful engagement, if there is a recognised trade union - have policies demonstrating engagement with recognised trade unions on matters relating to the contract workforce	- 1bi. Number of people working on the contract (aged 16 and above) who have a permanent contract - 1bii. Number of people with long-term health conditions supported into work - 1biii. Number of employees receiving workplace adjustments - 1biv. Retention rates for employees with health conditions - 1bv. Participation rates in health and wellbeing initiatives - 1bvi. Number of workers with flexible working arrangements
1c. Fair pay	- payment of more than the National Minimum Wage or National Living Wage (as age appropriate), or their equivalents to the contract workforce, including for apprentices still in their first year of apprenticeship and/or aged 18 or younger - monitoring and reporting of gender, disability, and ethnicity pay gaps and plans to address them where necessary - entitlement to sick pay for the contract workforce, with provision in place for any staff who do not meet the earnings threshold for statutory sick pay (or equivalent), payment of sick pay from day one of absence and payment of staff on the contract workforce who are off sick a replacement income of 100% of their usual earnings for as long as possible (as tested during market research and pre-market engagement) - plans for an appropriate income replacement policy for staff who are required to spend time away from work to care for a sick dependent or close relative.	- 1ci. Number of people working on the contract paid the above the National Minimum Wage - 1cii. Number of people working on the contract paid above the National Living Wage - 1ciii. Number of people working on the contract paid above the National Living Wage, irrespective of age - 1civ. Number of people working on the contract not meeting the earnings threshold for statutory sick pay who are entitled to sick pay from day one of absence at 100% of their usual earnings

Outcome 2: Skills - activities to address skills shortages, promoting skills development opportunities particularly to those who face barriers to employment or struggle to engage in the labour market

Criteria	Sub-criteria	Standard reporting metric
2a. Training / Retraining	- understanding of the needs of the target community or cohort, the skills issues or shortages relating to the contract and steps to address these issues. - illustrative examples include: demographics, skills shortages, new opportunities in high-growth sectors, Target Cohorts, geographic/local community and skills/employment challenges - collect and report the views and data of the target community or cohort and their representative organisations on successfully supporting employees or applicants - deliver training programmes to address any identified skills gaps in target communities and cohorts working on the contract. Illustrative example: supported internships.[footnote 17] - deliver training programmes to address any identified skills gaps in target communities and cohorts to encourage entry into the future contract workforce - adaptations that support the target community or cohort into skills programmes  - identify and provide support to increase training and/or retraining in UK-based critical manufacturing sectors or high-growth sectors. - solution is co-designed in partnership with relevant civil society organisations, universities, catapults, or research organisations.	- 2ai. Number of T-Level industry placements hosted or retained under the contract for people from the target community or cohort - 2aii. Number of training schemes or programmes delivered to address identified skills gaps in target communities or cohorts in the contract workforce - 2aiii. Number of person hours of training schemes or programmes delivered to address identified skills gaps in target communities or cohorts in contract workforce - 2aiv. Number of training schemes or programmes delivered to address identified skills gaps in target communities or cohorts in the future contract workforce - 2av. Number of person hours of training schemes or programmes delivered to address identified skills gaps in target communities or cohorts in the future contract workforce - 2avi. Number of individual non-apprenticeship training opportunities created or retained under the contract for people from the target community or cohort - 2avii. Number of skills or training positions created which address critical manufacturing in the UK
2b. In-work progression	- understanding of in-work progression issues affecting the market, industry or sector relevant to the contract, and in the supplier’s own organisation and those of its key sub-contractors, and actions the supplier will take to address these issues - measures to support in-work progression to help people in the contract workforce to move into higher paid work by developing new skills relevant to the contract - support the contract workforce by providing career advice, and providing opportunities for staff working on the contract with in-work progression career development into known skills shortages or high growth sectors. Illustrative examples: mentoring; mock interviews, CV advice and careers guidance, learning and development, careers talks, curriculum support, literacy support and safety talks - support for educational attainment relevant to the contract, including training schemes that address skills gaps and result in recognised qualifications to help progression.	- 2bi. Number of person hours of staff in-work progression upskilling delivered through training opportunities and comprehensive upskilling programmes - 2bii. Number of hours of career support and guidance provided to the workforce - 2biii. Number of person hours spent participating in volunteering opportunities
2c. Talent Pipeline	- Identify and develop a talent pipeline of people for future employment or training opportunities on the contract workforce particularly those: i. in a Target Cohort  ii. located in areas of multiple indices of deprivation iii. in industries with known skills shortages or a high-growth sector iv. in industries with changing skills needs v. experiencing long-term health conditions and disabilities - solution is co-designed in partnership with relevant Target Cohort, or civil society organisations, universities, catapults, or research organisations to address systemic barriers to future employment and training and actions to address these barriers. - activities that support the target community or cohort attain essential skills to facilitate entry into future employment or training. Illustrative examples: GCSE Maths or English or other Core Skills set out in the UK Standard Skills Classification.	- 2ci. Number of apprenticeships created in high-growth innovative industries - 2cii. Number of training places offered in high-growth innovative industries - 2ciii. Number of work experience placements delivered in high-growth innovative industries - 2civ. Number of SMEs, VCSEs, universities, catapults, or research organisations engaged in the supply chain - 2cv. Number of people located in deprived areas that have received skills training - 2cvi. Number of people located in deprived areas that report a positive impact of receiving the training - 2cvii. Number of new entrants supported in critical manufacturing sectors in the UK to develop supply chain capacity - 2cviii. Number of actions to address systemic barriers to future employment or training for the target community or cohort - 2cix. Number of activities supporting the target community or cohort attain essential skills - 2cx. Number of people in the contract workforce with learner-owned skills ‘passports’

Target cohorts

• people not in employment, education or training (NEETs), aged 16 to 24 years old and are not:
  • in employment
  • enrolled on an education course and are still attending or waiting for term to start or restart
  • doing an apprenticeship
  • on a government-supported employment or training programme
  • working or studying towards a qualification
  • within four weeks of having job-related training or education
• people transitioning from education to employment, defined as people who have left education or training in the previous 12 months
• people with a long term health condition or disability as defined in the Equality Act 2010^{[footnote 18]}, 
• people with Special Educational Needs and Disabilities/Neurodiversity, defined as, a child or young person has special educational needs if they have a learning difficulty or a disability which calls for special educational provision to be made for them.
• care leavers, defined as a person aged 16 to 24 years old who was a looked after child for a period of 13 weeks or more (consecutive or non-consecutive) between the ages of 14 and at least one day after their 16th birthday.
• people on probation, including those serving community sentences and prison leavers, and people in prison where support is aimed at reducing reoffending.
• victims of domestic abuse.
• veterans.

Annex C: Evaluation: Model Score-allocation Method

This is a suggested template for scoring social value criteria.

Score	Definition of score
0	the tenderer fails to provide a response. OR the tenderer’s response provides no confidence that the it can support the Social Value Model outcome because:  - more than one of the Social Value Model award criteria, sub-criteria or relevant additional award criteria have not been addressed; or - the response is of very poor quality and detail; or - the response is incomprehensible and irrelevant to the Social Value Model award criteria
1	the tenderer’s response provides limited confidence that the it can support the Social Value Model outcome because: - one of the Social Value Model award criteria, sub-criteria and relevant additional award criteria has not been addressed; or - the method statement does not contain specific, measurable and time bound commitment(s) which support achieving the Social Value Model award criteria; or - the response lacks detail, clarity, or relevance meaning there are a significant number of concerns that would need addressing after awarding the contract.
3	the tenderer’s response provides an acceptable level of confidence that it can support the Social Value Model outcome because:  - all of the Social Value Model award criteria, sub-criteria and relevant additional award criteria have been addressed to some degree; and  - the response provided is of an acceptable level of quality, detail and relevance, however, there are a small number of areas in the response which would benefit from greater clarity
6	the tenderer’s response provides a good level of confidence that it can support the Social Value Model outcome because:  - the response supports one or more Community Programmes evidenced by a dated letter, in the format requested, to the Community Programme/s confirming that, subject to award of contract, the tenderer will support the programme and that this is additional to any support proposed or currently offered and/or provided; and - all relevant additional award criteria have been addressed; and - the response provided is of a good level of quality, detail, clarity, and relevance with no concerns; and - the response leaves no doubt of the suppliers’capability to deliver what is required. OR where a Community Programme is not supported: - all of the Social Value Model award criteria, sub-criteria and relevant additional award criteria have been fully addressed; and  - the response provided is of a good level of quality, detail, clarity, and relevance with no concerns; and - the response leaves no doubt of the suppliers’ capability to deliver what is required.
10[footnote 19]	the tenderer’s response provides an excellent level of confidence that it can support the Social Value Model outcome because: - the response supports one or more Community Programmes evidenced by a dated letter, in the format requested, to the Community Programme/s confirming that, subject to award of contract, the tenderer will support the programme and that this is additional to any support proposed or currently offered and/or provided; and - all relevant additional award criteria have been addressed; and - the response provided is of a good level of quality, detail, clarity, and relevance with no concerns; and - the response leaves no doubt of the suppliers’ capability to deliver what is required; and - the tenderer’s response offers additional and relevant social value in support of the social value criteria set out in the tender document. OR where a Community Programme is not supported: - all of the Social Value Model award criteria, sub-criteria and relevant additional award criteria have been fully addressed; and - the response provided is of a good level of quality, detail, clarity, and relevance with no concerns; and - the response leaves no doubt of the suppliers’ capability to deliver what is required; and - the tenderer’s response offers additional and relevant social value in support of the social value criteria set out in the tender document.

Annex D: Template Letter for Community Programme Contacts

The following is a template letter that suppliers should use to write to the Community Programme Contact, submitting a copy with their tender submission. Where the supplier is successful, the letter should be included in the contract.

To whom it may concern,

SOCIAL VALUE COMMITMENT FROM [SUPPLIERS NAME] IN RELATION TO [ENTER UNIQUE PROCUREMENT IDENTIFIER^{[footnote 20]}]

This letter is to confirm that, if awarded a contract for [procurement name] by [contracting authority name], we will deliver the following social value commitment to your Community Programme:

[You should set out here the number of individuals or units of the Community programme you will support and by when].

Our point contact for you will be: [insert a single point of contact]. 

Signed by:

Role:

Date:

Contact details:

Annex E: Further information on social value and value for money

PPN 026 does not replace the requirements included in other guidance documents or legislation. You should ensure that you follow the expectations set out elsewhere and where your legal obligations conflict with the PPN 026, you must meet your legal obligations. 

You are also able to take into account broader social value expectations, such as carbon emissions or modern slavery as set out in other PPNs or with their own weighting in your procurements. However, this should be in addition to the 10% or 20% weighting applied to the Social Value Model and not form part of this weighting. There may also be opportunities to use the existing outcomes in ways that align with your wider organisation objectives, for example, by encouraging the creation of jobs or skills as a part of a talent pipeline in the clean energy industry if your organisation has environmental objectives and this is appropriate for your contract.

1. The Green Book

The government uses the Green Book to evaluate policies, projects, and programmes to ensure public money is spent effectively. By applying Green Book principles, decision-makers can select proposals that achieve their intended objectives while delivering improved social welfare and community benefits. For further details on how to handle public funds, refer to the Managing public money guidance.

2. Public Services (Social Value) Act 2012

When procuring services, or services together with goods and/or works, you should have regard to the Public Services (Social Value) Act 2012^{[footnote 21]} to ensure your procurement is compliant. It requires public authorities in England and Wales (with some exceptions in Wales) to consider when procuring services;

• how what is being proposed might improve the economic, social, and environmental wellbeing of the relevant area
• how in conducting the process of procurement, it might act with a view to securing that improvement
• whether to take and consultation on the above points

The Social Value Model is designed to align with the Public Services (Social Value) Act 2012, however, as part of your business case process and before the procurement begins, you should ensure that you have given due regard to the Act.

3. The National Procurement Policy Statement

The Procurement Act 2023 sets out that contracting authorities must have regard to the National Procurement Policy Statement (NPPS) when procuring public contracts, unless they are exempted. The NPPS sets the government’s strategic priorities for public procurement in support of the government’s missions whilst still achieving value for money and social value. 

4. Researching local communities

This table includes examples of sources you can use to research the needs of local communities and cohorts, but you should use other resources relevant to specific communities, regions, and industries to assess the market if needed.

Example sources and links where available

• Local Skills Improvement Plans
• Get Britain Working Plans
• ONS Area reports
• Regional Skills Partnership Plans (Wales)
• Regional Skills Assessments and Sectoral Skills Assessments (Scotland)
• Skills Action Plan (Northern Ireland)
• Joint Strategic Needs Assessments
• Joint Health and Wellbeing Strategies
• Industrial Strategy Jobs Plans
• Trade Union Learning Representatives
• Local authority, industry, and supplier social value, skills, or employment strategies
• Get Britain Working White Paper

1. PPN 002: Taking account of social value in the award of contracts ↩

2. Procurement Policy Note 06/20 – taking account of social value in the award of central government contracts ↩

3. Valued in accordance with section 4 of, and Schedule 3 to, the Procurement Act 2023 (including VAT). ↩

4. Utilities contracts as defined in sections 2 and 6 of the Procurement Act 2023. ↩

5. See Industrial Strategy Sector Definitions List ↩

6. Guidance: Treaty State Suppliers ↩

7. The Sourcing Playbook ↩

8. Sections 16 and 17 of the Procurement Act 2023. ↩

9. See guidance on:  ↩

10. Guidance: Thresholds ↩

11. Valued in accordance with section 4 of, and Schedule 3 to, the Procurement Act 2023 (including VAT). ↩

12. section 52 of the Procurement Act 2023 and regulation 32(2)(r) of the Procurement Regulations 2024. ↩

13. Guidance: Key Performance Indicators ↩

14. Section 71(4) and (5) Procurement Act 2023 require the publication of a contract performance notice in these circumstances. ↩

15. Sections 26(2)(b) and 27(3) Procurement Act 2023 give contracting authorities the discretion to disregard tenders from excludable suppliers, which are defined at section 57. Paragraph 12(4) of Schedule 7 to that Act provides a discretionary exclusion ground where the supplier has been the subject of a contract performance notice under s71(5). ↩

16. Supported internships are work-based study programmes for young people aged 16 to 24 with an Education, Health and Care Plan (EHCP) who need additional support to move into employment. They typically last 6 to 12 months, with most learning taking place in the workplace and support from an expert job coach. ↩

17. Definition of disability under the Equality Act 2010 ↩

18. Where market research and engagement indicates that social value practices in the sector are mature and it is possible that additional social value will be offered in addition to a Community Programme (but aligns with award criteria set out in the tender document), contracting authorities can include in their score allocation method the ability to award scores for this additional social value. ↩

19. See Tender Notice to be provided by supplier ↩

20. Public Services (Social Value) Act 2012 ↩