The Social Value Model outlines types of commitments that can contribute to Social Value in central government tenders.
PPN 026 introduced a new Social Value Model for contracting authorities (buyers), focusing on two outcomes: Good Jobs and Skills – covering areas such as job creation, fair working conditions, fair pay, training, career progression and talent pipelines.
For suppliers, this means Social Value should not be treated as an afterthought when preparing a tender response. The strongest approach is to understand what your organisation already does, identify where it aligns with the new model, and develop credible commitments that are relevant to the contract.
The Social Value Model is a framework which has been designed to help contracting authorities use procurement to create jobs, upskill workforces and create opportunities for people facing employment barriers within the UK.
The Social Value Model is split into two outcomes with six Model Award Criteria (MAC):
Full details of when and how contracting authorities will use the Social Value Model can be found in our ‘PPN 026: The Social Value Model’ summary.
From 1 January 2027, the Social Value Model should be used for central government procurements valued at £1 million or more including VAT.
Prior to bidding, you can build an evidence base of your existing Social Value activities and commitments, helping you prepare for Social Value questions regardless of which MACs the contracting authority selects – and potentially saving you time when preparing your responses.
First: Review and document your current activities in line with the MACs.
Then: Consider how this information will support your bids
The answers to these questions, along with supporting evidence, can then be mapped to each MAC and be used to reinforce proposals – while allowing you to set realistic benchmarks for delivery.
Buyers will include mechanisms to monitor and measure your social value commitments, so using existing measures will not only give you the evidence needed to support your bids, but provide you with frameworks for reporting against commitments and KPIs.
Buyers will select the MACs that are relevant to the contract and proportionate to the requirements, and based on which MACs are selected, the buyer will expect associated initiatives or deliverables to be included with your bids.
Please note: Further details about how the Model will be implemented and how your responses will be evaluated will be published in the coming months, and the following information will be updated then.
This MAC looks at how suppliers can contribute to employment opportunities in the relevant area and support economic growth objectives.
This can include:
When preparing your response, consider where your organisation can make a genuine commitment to job creation or retention through the delivery of the contract.
For example, if delivering the contract requires additional staff, consider how those roles could contribute to local employment or address an identified skills shortage.
This MAC considers the quality and security of the working conditions provided during contract delivery, and considers measures to support the objectives in the Plan to Make Work Pay.
Suppliers can demonstrate this through commitments that go beyond the statutory minimum, including:
Consider how your existing employment practices could demonstrate the additional value your organisation will provide through the contract. You can also review the Plan to Make Work Pay and Employment Rights Act: timeline update to see the areas of particular interest to the UK government.
This MAC considers the financial wellbeing of the contract workforce, and considers measures to support the objectives in the Plan to Make Work Pay.
Suppliers can demonstrate this through commitments such as:
When developing your response, consider how your approach to pay contributes to the financial wellbeing and retention of the people delivering the contract. You can also review the Plan to Make Work Pay and Employment Rights Act: timeline update to see the areas of particular interest to the UK government..
This MAC looks at whether training and retraining opportunities address skills shortages or support people from areas of multiple deprivation or those facing barriers to employment.
Relevant activities could include:
Think about the skills your contract requires and whether your organisation can create training or development opportunities that help meet those needs.
This MAC focuses on helping people already within the workforce develop their skills and progress into higher-paid work.
Suppliers can demonstrate how they will:
If your organisation already has career development or training programmes, consider whether these could form part of a measurable commitment connected to the contract.
This MAC focuses on developing future talent and addressing future workforce needs.
The model specifically identifies work experience as an example of the type of Social Value that can be delivered through this approach.
The new model places particular emphasis on people facing barriers to employment and communities experiencing skills shortages.
Further details are expected to be released in the coming months, and are expected to identify target cohorts including:
This gives you another useful question to ask when preparing your Social Value approach:
Who could benefit from the opportunities created by this contract, and what skills would help them access or progress through employment?
Identifying a good Social Value initiative is only the beginning.
Your commitments should be credible and measurable so that you can demonstrate what you intend to deliver. Rather than simply stating that you will “support local employment”, consider what that commitment means in practice.
For example:
The new model is intended to support the selection of outcomes and criteria, evaluation of supplier responses and measurement of performance.
Social Value commitments made by successful suppliers can also become contractual commitments, with performance monitored through mechanisms such as Key Performance Indicators (KPIs). For contracts worth £5 million or more, at least one social value KPI must be set.
This makes it important to only commit to activities your organisation can realistically deliver.
Social Value does not necessarily mean creating an entirely new programme for every tender. Your existing employment, training and development activities may already align with one or more of the Model Award Criteria.
The opportunity is to identify where your existing activities can contribute to the outcomes selected by the contracting authority, then demonstrate how they will create value through delivery of the contract.
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.
