Social value

Social value is how UK public bodies weigh up the wider benefits of a bid, not just price and quality. The Public Services (Social Value) Act 2012 requires public authorities to consider social value when buying services, and central government goes further.

What it means for a small business

Under PPN 002, central government departments must give social value a minimum 10% weighting of the total score on in-scope contracts, using a Social Value Model aligned to the government’s missions. Other public bodies have their own approaches, so check each tender’s evaluation criteria.

That 10% can decide a close bid, and small suppliers often have strong, specific answers: local hiring, apprenticeships, paying the Real Living Wage, volunteering with local groups, buying from local suppliers, and a clear plan to cut emissions.

What scores well is specific and measurable: who will benefit, how many, by when, and how you will report it. General statements about being a responsible business score poorly.

An example

A 20-person landscaping firm bidding for a council grounds contract commits to: two apprenticeships for local young people over the contract term, 40 hours of staff volunteering a year with a local park trust, switching two vans to electric in year one, and quarterly reporting on all three. Each commitment has a number, a date and an owner.

How ESG Now handles it

The ESG Now report records the people and community side of your business, including Real Living Wage, training, benefits, volunteering and charitable giving, alongside your carbon footprint. That gives you evidence to draw on when writing social value answers. Read our guide to social value answers for small suppliers, or see how ESG Now helps with public sector tenders. For major central government contracts, you may also need a Carbon Reduction Plan.