"Social value" now appears in almost every public tender — and it can be the part that wins or loses you the contract. If you're not sure what buyers are actually asking for, this guide explains it.
At a glance
- Social value is the wider economic, social and environmental benefit a contract can deliver — beyond the goods or service itself.
- The Public Services (Social Value) Act 2012 requires authorities to consider this when buying services.
- Central government uses a Social Value Model, scored as part of the bid.
- Current guidance (PPN 002) sets a minimum 10% weighting for social value in central government contract awards.
What does "social value" mean?
Social value is the extra benefit a contract creates for society and the economy, on top of what's being bought. For example, a cleaning or construction contract might also create local jobs, offer apprenticeships, support small businesses in the supply chain, or cut carbon emissions. Buyers increasingly want suppliers to deliver — and evidence — those wider benefits.
The Public Services (Social Value) Act 2012
The Public Services (Social Value) Act 2012 requires English and Welsh public authorities to consider, at the planning stage of a services procurement:
- how what they buy might improve the economic, social and environmental wellbeing of the area;
- how the procurement process itself might secure that improvement; and
- whether to consult on those points.
In short, it bakes "what wider good can this contract do?" into the early thinking of a procurement.
The Social Value Model and the 10% rule
For central government, social value is assessed using a Social Value Model, which groups social value into themes and outcomes that bidders are scored against.
The current Procurement Policy Note, PPN 002, sets a minimum weighting of 10% of the total scores available for social value (or equivalent). Where buyers use an absolute methodology (such as price-per-quality-point), that 10% applies to the non-price/quality criteria.
There is essentially one permitted exception to the 10% minimum: where preliminary market engagement shows that applying it would significantly reduce competition because the market isn't yet mature enough to deliver social value in that area.
Note: PPN 002 replaced the earlier social value guidance (PPN 06/20). Always check the version a specific tender refers to.
How to win on social value
- Answer what's asked. Social value questions map to specific themes and outcomes — address those, not generic good intentions.
- Be specific and measurable. "We'll create 3 local apprenticeships in year one" beats "we support the community."
- Make it relevant to the contract. Buyers want social value tied to this contract and this area.
- Evidence delivery. Say how you'll track and report the commitments you make.
Social value is where small suppliers are often genuinely stronger than large ones, and where they most often under-sell themselves. Local employment, local supply chains and real community ties are worth marks — but only if you write them down as specific, measurable commitments rather than as a statement of good intentions.
Frequently asked questions
What is social value in simple terms?
The wider economic, social and environmental benefit a contract delivers beyond the product or service itself — such as local jobs, apprenticeships, supporting SMEs, or reducing carbon.
Is social value a legal requirement?
The Public Services (Social Value) Act 2012 requires English and Welsh authorities to consider social value when procuring services. For central government, PPN 002 sets a minimum 10% weighting in the award.
How much is social value worth in scoring?
PPN 002 sets a minimum of 10% of the available scores (or equivalent) for central government contracts.
What replaced PPN 06/20?
PPN 002 is the current guidance on taking account of social value in central government contract awards.