This Procurement Policy Note (PPN) introduces a new Social Value Model for central government contracts, focusing on creating good jobs, skills and opportunities within local communities.
From 1 January 2027, the model will apply to Public Contracts valued at £1 million or more, including VAT. For suppliers, this means social value will form a more significant part of how relevant tenders are evaluated, with minimum weightings of 10% for contracts below £5 million and 20% for contracts worth £5 million or more.
PPN 026 introduces a new Social Value Model for central government procurement, replacing the previous Social Value Model under PPN 002.
The model focuses on how suppliers will contribute to their communities through good jobs and skills, with particular emphasis on good British jobs, skills and opportunities in every postcode.
The model is built around two outcomes:
Suppliers should therefore consider how they can make credible, measurable commitments in these areas that are relevant to the contract and the outcomes selected by the contracting authority.
The model also places particular emphasis on supporting people facing barriers to employment and addressing local skills shortages.
From 1 January 2027, in-scope organisations must apply the new Social Value Model to relevant procurements valued at £1 million or more including VAT.
For contracts valued at £1 million but less than £5 million, social value must account for a minimum of 10% of the total score available to tenders. For contracts valued at £5 million or more, the minimum increases to 20%.
Contracting authorities must select relevant social value outcomes and award criteria that relate to the subject matter of the contract and are proportionate. They must also ensure the approach does not create unnecessary burdens for suppliers or barriers to participation.
Social value commitments made by successful suppliers will also be monitored through contractual mechanisms such as Key Performance Indicators (KPIs). For contracts worth £5 million or more, at least one social value KPI must be set.
PPN 026 will have a direct impact on how suppliers prepare and respond to relevant central government tenders.
The new model introduces minimum Social Value weightings of 10% for contracts valued between £1 million and £5 million, and 20% for contracts valued at £5 million or more. Suppliers will therefore need to consider how they can make credible and measurable Social Value commitments – that are relevant to the contract and the outcomes specified by the contracting authority.
If you’re new to Social Value or want to understand how it can strengthen your tender responses, see our guide: Social Value Explained: An Overview for Suppliers.
This article provides a supplier-focused summary of PPN 026. The Government publications remain the authoritative source for the full requirements and guidance.
Official PPN: PPN 026: The Social Value Model – GOV.UK
Guidance: Associated guidance is due to be published in autumn 2026.
Understanding Social Value is one thing. Demonstrating it effectively in a tender is another.
If you want to improve your bid scores, our 1-day Social Value Masterclass will help you identify, evidence and communicate Social Value in a way that strengthens your tender submissions.
