Government Introduces Updated Social Value Model for Public Procurement

A renewed focus on community benefit

The Cabinet Office has published Procurement Policy Note 026, introducing a revised Social Value Model intended to strengthen the community benefits generated through central government procurement.

The updated approach concentrates on two principal outcomes: good jobs and skills development. It places particular emphasis on fair working conditions, employment opportunities, training and support for people who face barriers to entering or progressing within the labour market.

The policy reflects the government's intention to ensure that public expenditure contributes to wider economic and social outcomes, rather than being assessed solely on the immediate delivery of goods and services.

What is changing?

Under the published policy, relevant central government organisations are expected to apply the updated model to procurements commencing on or after 1 January 2027.

For covered procurements valued at £1 million or more, the model introduces minimum social-value evaluation weightings of 10% for contracts below £5 million and 20% for contracts valued at £5 million or above.

The requirements are subject to the policy's scope, relevance and proportionality provisions. They should not be interpreted as applying automatically to every public-sector contract or local authority procurement.

The policy also places emphasis on monitoring the commitments suppliers make during procurement, including the use of appropriate performance indicators.

What does this mean for employers?

Businesses competing for relevant public contracts may need to demonstrate how their commitments translate into practical benefits for communities.

This could include employment pathways, skills development, inclusive opportunities and other activities directly relevant to the contract and the selected evaluation criteria.

For organisations already investing in volunteering and community engagement, the development reinforces the importance of maintaining reliable records and distinguishing between activities undertaken and outcomes achieved.

However, general volunteering hours do not automatically satisfy procurement criteria. Any proposed social-value commitment must align with the relevant contract and the applicable procurement framework.

The Care to Volunteer perspective

Care to Volunteer believes that effective community engagement begins with meaningful participation and responsible measurement.

Our approach is designed to help organisations coordinate volunteering activities, record contributions and build clearer evidence of community involvement.

As procurement expectations evolve, businesses will increasingly benefit from understanding which community activities are relevant, what evidence can be collected and how commitments can be delivered responsibly.

The wider message is clear: credible social value requires more than a promise. It requires appropriate action, evidence and accountability.