Social Value Now Plays Bigger Role in Government Procurements

On 5th August 2026, the Government published its new Procurement Policy Note (PPN) 026 changing the Social Value Model to support procurement, whether from UK or international providers.

The policy note defines social value for government contracts as ‘taking account of how a supplier will work for our communities to provide good British jobs, skills and opportunities in every postcode.’ The new model focuses on employment and skills, reflecting a shifting focus toward job security and competence.

Under the changes, the score for bringing benefits to the local community will be raised from 10% to 20% for contracts worth £5m. A minimum 10% threshold has also been implemented for contracts worth more than £1 million. In effect, social value will play a bigger role in the evaluation of higher-value procurements.

These changes are also designed to support smaller firms and local social enterprises to showcase their innovation and the benefits they are already delivering in communities. The Government says that it wants every young person to have the chance to earn or learn. New rules will double the importance of creating local benefits when the government buys goods or services – ensuring spending directly creates training, work experience, and jobs in every postcode.

The new weightings for social value benefits apply only to central government departments, their executive agencies and non-departmental public bodies. It does not affect local authorities, the NHS, or education buyers, nor does it apply to private utilities contracts.

The new model becomes mandatory for all in-scope procurements commencing on or after January 1st 2027. Procurement teams are encouraged to begin this transition immediately, with the caveat that the previous Social Value Model be used in the changeover period ‘if using the new model would require disproportionate resources or invalidate previous market engagement activities.’

Read the full guidance note: www.gov.uk/government/publications/ppn-026-the-social-value-model

Further guidance is alleged to follow in autumn 2026.