What is Social Value in Procurement

Social value in procurement is about going beyond the traditional focus on price and quality to consider the wider benefits that purchasing decisions can create for society, the environment, and the economy.

It recognises that public money—and increasingly private sector spending—represents an opportunity to deliver additional value beyond the immediate goods or services being procured. Every contract award is a chance to create jobs, strengthen local economies, reduce environmental impact, or improve community wellbeing.

 

The legislative framework

The Public Services (Social Value) Act 2012 marked a turning point for social value in procurement. It requires public bodies to consider how the services they procure might improve the economic, social and environmental wellbeing of their area.

Initially, the Act’s impact was limited. But government policy has progressively strengthened social value requirements. Since January 2021, central government contracting authorities have been required to explicitly evaluate social value in procurement, with it accounting for at least 10% of the total evaluation criteria.

This policy has rippled through the public sector. Local authorities, housing associations, NHS trusts, and other public bodies have increasingly adopted similar approaches, embedding social value into their procurement strategies and evaluation frameworks.

The result is a landscape where social value is no longer optional for organisations bidding for public contracts. It’s a standard expectation, and the organisations that understand this and respond effectively have a competitive advantage.

 

What commissioners are looking for

When public bodies evaluate social value in procurement, they’re looking for several things.

Relevance and alignment

Generic social value commitments that could apply to any contract won’t score well. Commissioners want to see that you understand their specific priorities, the needs of their communities, and the particular opportunities that the contract in question creates to deliver social value.

Credibility and deliverability

Ambitious commitments mean little if there’s no credible plan to deliver them. Commissioners look for evidence that you have the systems, expertise, and track record to turn promises into reality.

Measurability

How will you track and report on your social value delivery? Commissioners increasingly expect specific, measurable commitments with clear KPIs and reporting mechanisms.

Added value

Social value should represent additional benefit beyond what would happen anyway. Commissioners can spot when organisations are repackaging business-as-usual activities as social value or making commitments that create no meaningful additional impact.

 

Common social value themes in procurement

While specific priorities vary by commissioner and contract, several themes consistently appear in public procurement:

Employment and skills including commitments to create local jobs, provide apprenticeships and training opportunities, support people facing barriers to employment, and ensure fair working conditions throughout the supply chain.

Local economic growth such as spending with local businesses and SMEs, supporting social enterprises, creating supply chain opportunities for underrepresented groups, and contributing to economic regeneration in disadvantaged areas.

Environmental sustainability covering carbon reduction, use of sustainable materials, waste minimisation, protection and enhancement of biodiversity, and contributions to climate adaptation and resilience.

Social wellbeing including support for local community initiatives, volunteering, improving health and wellbeing, tackling inequality, and responding to specific local challenges such as homelessness or food poverty.

Innovation where the contract creates opportunities to pilot new approaches, technologies, or models that could deliver better outcomes or value for money.

 

The National TOMs framework

Many public bodies structure their social value requirements around the National TOMs (Themes, Outcomes and Measures) framework. Understanding TOMs is increasingly important for organisations bidding for public contracts.

TOMs provides a standardised set of social value measures organised around key themes: jobs, growth, social, environment, and innovation. Each measure has associated proxy values that allow social value to be quantified and compared.

Using TOMs means commissioners can evaluate social value consistently across different bids and suppliers can understand what’s expected. While not every procurement uses TOMs, familiarity with the framework and its measures is valuable for any organisation working in the public sector.

 

From procurement to delivery

Social value commitments made during procurement become contractual obligations upon contract award. This means they need to be deliverable, not aspirational.

Successful organisations approach social value as an integral part of contract delivery from day one, not something to think about once the project is underway. They establish clear responsibilities, integrate social value into project planning and management, set up measurement and reporting systems, and allocate adequate resources to deliver on commitments.

They also recognise that social value delivery often requires collaboration. Working with local authorities, employment services, education providers, community organisations, and supply chain partners helps unlock opportunities and overcome barriers.

 

The strategic opportunity

While social value in procurement initially emerged as a compliance requirement, leading organisations now recognise it as a strategic opportunity.

Strong social value credentials help win work in an increasingly competitive market. They differentiate your organisation from competitors. They build stronger relationships with clients and communities. They attract employees who want to work for purpose-driven organisations. And they drive operational improvements that create both social and commercial benefits.

Organisations that treat social value as a burden to be minimised miss this opportunity. Those that embrace it, integrate it into their culture and operations, and genuinely commit to creating positive impact position themselves for success in a market where social value expectations will only continue to increase.

 

Making social value work in procurement

If you’re navigating social value requirements in procurement, several principles can help:

Start early—don’t leave social value to the last minute when responding to tenders. Understand commissioner priorities well before procurement launches. Build relationships with stakeholders who can help deliver social value. Develop your approach and gather evidence of capability in advance.

Be specific—generic commitments won’t win work. Demonstrate you understand local context, can respond to particular challenges, and have tailored your approach to the opportunity at hand.

Be realistic—overpromising to win work and underdelivering damages your reputation and risks contract performance issues. Commit to what you can genuinely achieve.

Demonstrate capability—show you’ve delivered similar social value before, have systems to manage and measure performance, and have thought through implementation in practical detail.

And remember that social value in procurement isn’t just about winning individual contracts. It’s about building long-term relationships, demonstrating consistent commitment to creating wider benefit, and establishing yourself as a partner that commissioners trust to deliver not just the contract scope, but meaningful social value alongside it.

 

Ready to measure your impact?

Whether you’re looking to strengthen your social value reporting, improve your tender submissions, or simply understand the difference you’re already making, we’re here to help. Get in touch today.